Investor Intelligence
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Investor Intelligence
Close-Up On Ulta, The Stock That Warren Buffet Dumped: Why Beauty Is In The Eye Of The Shareholder
When Warren Buffett buys into a stock, investors take notice. And when he sells it, you can bet they note that, too. That’s exactly what happened this year with Ulta Beauty – a company that briefly caught (and then lost) the Oracle of Omaha’s fancy. But, here’s the thing: just because Buffett stepped away doesn’t mean this opportunity should be off the table for the rest of us. In fact, I think Ulta’s current valuation presents an interesting proposition that’s worth paying attention to.
Finimize analyst Theodora Lee Joseph argues that what we're actually looking at is a high-return business trading at a 12-month forward price-to-earnings ratio of under 14x – a steep discount to its historical average. Factor in Ulta’s “omnichannel” strategy, loyal customer base, and potential to benefit from big-picture tailwinds like rate cuts and the recovery in China’s beauty market, and the upside becomes pretty hard to ignore.
She pops into the studio to show you why Ulta beauty deserves a look.
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