Keep an eye on Ulta (ULTA).
Over the last few days, the stock gapped from about $524.84 to $444.75 thanks to soft guidance. As noted by Seeking Alpha, “The company noted that it has seen a slowdown in demand across beauty categories. In terms of guidance, Ulta Beauty sees Q1 comparable sales landing at the lower end of that first half guidance for low single-digit growth.”
However, it appears the stock found support at $444.75. In addition, RSI, MACD, and Williams’ %R have become over-extended in oversold territory. From its last price of $444.75, we’d like to see ULTA initially refill its bearish gap around $524.94 shortly.
Helping, UBS analysts noted that Ulta’s sales trends are trending soft but thinks the risk-reward profile looks appealing even in a downside case.