Ulta Salon, Cosmetics, & Fragrance, Inc. (ULTA) is one of those high-end retailers that has performed extremely well within its niche. The has little competition and very high prices, but the real beauty lies in their ability to crank out nice margins and a strong bottom line.
This chart of the week is something to behold, since the earnings gap it had been consolidating sideways broke out on higher turnover last week.
We like to see a stock moving higher on bigger volume, which indicates institutional sponsorship. The technical readings are also flashing a positive, with the MACD on a buy signal and relative strength holding up. The moving averages have been a great support; $20 and $50 have been areas of interest to buyers of the stock most recently. Even though their earnings report is still far out on the horizon, we could see this stock make a run to the $150’s in short order.
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