Is Ulta Beauty Stock Underperforming the S&P 500?

Bolingbrook, Illinois-based Ulta Beauty, Inc. (ULTA) operates as a specialty beauty retailer in the United States and internationally. The company has a market cap of $23.2 billion and offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, Ulta.com website, and its mobile applications. 

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” ULTA fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the specialty retail industry.   

Despite its strength, ULTA stock slipped 24.7% from its 52-week high of $714.97, reached on Feb. 18. The stock is up 18.1% over the past three months, rallying the S&P 500 Index’s ($SPX) 2.9% rise during the same time frame.  

However, the scenario changes in the longer term. The stock has grown marginally over the past 52 weeks, while SPX delivered 15.7% returns over the same time frame, outperforming the stock.     

ULTA has been trading below its 200-day moving average since this month and above its 50-day moving average since the end of July, indicating short-term bullish momentum.

On Aug. 28, ULTA stock declined 4.2% following the release of its Q2 2026 earnings. Despite surpassing the consensus estimates on both its revenue and earnings fronts, which came in at $3 billion and $6.55, respectively, investor confidence was lost. This was mostly due to Q2 consumer spending overshadowing the earnings beat, as well as management announcing a deceleration in its comparable sales growth for the second half of the year, which is expected to come in at 2% to 3%. 

When stacked against its rival, Williams-Sonoma, Inc. (WSM), ULTA has underperformed. Over the past year, WSM stock has grown 10%.    

Analysts’ view of ULTA stock is somewhat bullish. Among the 26 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $628.83 offers a 16.5% upside potential.