ULTA Stock - Great Businesses Always Climb A Wall Of Worry!

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  • Опубликовано: 14 июн 2024
  • ULTA stock is down a bit from its peak but the business has been compounding greatly for the last 15 years. I give you 3 factors to consider when contemplating investing in ULTA stock. 1) there is competition, Sephora, 2) international expansion is always a risk and 3) we always have to consider the level of discretionary spending. All in all, investment returns will depend on the management's execution and economic activity.
    My passion is to look for low risk high reward investment opportunities. I apply my accounting skills and investing experience in order to find interesting investment ideas that offer the possibility to lead me towards my financial goals.
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Комментарии • 127

  • @SireStefan
    @SireStefan 4 дня назад +24

    Something else to keep in mind is that beauty products are HUGE right now, but that this was not always the case. In the 90s, there was a kind of anti-glamor reaction, because of how crazy the 80s were. Who knows, maybe in a decade or two there is a lot less interest in beauty products as a reaction to how crazy it is now. Culture often behaves in waves like that.

    • @Value-Investing
      @Value-Investing  4 дня назад +5

      good point!

    • @johnl.7754
      @johnl.7754 4 дня назад +1

      Also With lower birth rates less young women as customers

    • @exursist
      @exursist 4 дня назад +9

      ​@@johnl.7754Lol with the way the world is now Vs the 80s and 90s, soon women won't be the only gender that shops here 😅

    • @ASMR-Economics
      @ASMR-Economics 4 дня назад

      Yes this is true, I know plenty of men (myself included) shop at Ulta.

    • @HS-PGA
      @HS-PGA 3 дня назад

      There was no Instagram in the 90’s

  • @vladpuescu
    @vladpuescu 4 дня назад +8

    I also did my own analysis on ULTA and completely agree with what you said. I started a small position, hoping it goes down further to add at better prices.

  • @dawoodibrahim8036
    @dawoodibrahim8036 4 дня назад +2

    Hey sven, i think some important things that should be noted for $ULTA:
    1. Big safety is brand loyalty (95% customers are loyalty members)
    2. Almost always growth on revenue (except for pandemic)
    3. Related to point 1, most girls have high brand loyalty and adore the points system to buy their products from ULTA
    4. The makeup industry requires that you 'renew' your makeup every 2-3 years, so people in pandemic may be set to renew their products.
    5. US market is probably maturing but in Canada (they wanted to expand in 2020), there is no competitor to sephora here - so the next closest vendor is Shoppers Drug Mart but even this is not a substitute for ULTA's potential market position.
    I think it's a good investment at 15PE and has good ROIC & ROE; and have 20 shares currently.

  • @UshaSharma-xh3we
    @UshaSharma-xh3we 3 дня назад +53

    You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it.

    • @zenastronomy
      @zenastronomy 3 дня назад +1

      why turning point?

    • @user-pr9ol8lr8h
      @user-pr9ol8lr8h 2 дня назад +1

      ​@@zenastronomybecause people get comfort from confirmation bias haha

  • @vermasean
    @vermasean 4 дня назад +3

    Good day Mr. Sven! Thanks for another thorough analysis 🙌

  • @sirogersiroger8835
    @sirogersiroger8835 4 дня назад +4

    Great Video Sven, still waiting for Mc Donalds:) would say Great Business at a fair Price. Looking for the next Videos. BR

  • @patrickshanghai2064
    @patrickshanghai2064 3 дня назад

    your framework for thinking about stocks plus the patience you show is extremely useful. thx Sven. i am almost looking forward to a recession to observe how all these interesting stocks behave. and to buy more.

  • @nikhilgaming8928
    @nikhilgaming8928 3 дня назад

    Thank you for your research. I find your videos are well done. Right now I'm keeping an eye on Unimantic.

  • @christophenour
    @christophenour 4 дня назад

    Great analysis Sven. I've analyzed ULTA with my students and it's definitely an interesting business. We will see how it goes!

  • @joephysics5469
    @joephysics5469 4 дня назад +7

    After talking to some lady friends, I learned that most had purchased a lot of makeup during the covid times. Now with inflation they have cut back on spending on makeup and have enough to last many, many months. Hard times ahead for this industry.

    • @semkjaer3581
      @semkjaer3581 3 дня назад

      Covid restrictions ended over 2 years ago, I feel like those supplies must surely be running low

  • @JCTEAM60
    @JCTEAM60 4 дня назад +2

    In 1996, Starbucks started expanding internationally and a share was $2. Their stock price has increased over 4500% at present $. Don’t know that Ulta will see the same results but that would be quite tasty!

  • @Scottweeier846
    @Scottweeier846 3 дня назад +36

    I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer

    • @Nguyenvictory83
      @Nguyenvictory83 3 дня назад

      I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.

    • @Josephbasta827
      @Josephbasta827 3 дня назад

      Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's

    • @Toddburke343
      @Toddburke343 3 дня назад

      The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

    • @carolynvo7802
      @carolynvo7802 3 дня назад

      I'm new at this, please how can I reach her?

    • @EricLopez4167
      @EricLopez4167 3 дня назад

      Her good reputation already speaks for her .I’m also one of the beneficiary of Natalie Strayer. So happy I gave it a trial after being skeptic of the process.

  • @OliverLiam-px3vx
    @OliverLiam-px3vx 3 дня назад +3

    Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

    • @HRMColoniallifeinsurance
      @HRMColoniallifeinsurance 3 дня назад +3

      The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have a great deal of skill and knowledge to pull such trades off.

    • @EricaWaters-lr6zw
      @EricaWaters-lr6zw 3 дня назад +2

      Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from Desiree Ruth Hoffman, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.

  • @johannesreiter5400
    @johannesreiter5400 4 дня назад +3

    Thanks Sven for your content. Could you cover some Hongkong property stocks Like Swire Group or Jardine? Would ne interesting :)

  • @inigosanchez4217
    @inigosanchez4217 4 дня назад

    Thanks Sven. Great video. What do you think about Sixt preference stock? The stock is falling sharply recently

  • @damiux1
    @damiux1 3 дня назад

    Hi Sven, very good video, extremely interesting as usual
    What do you think about the "Lipstick effect" in case of a recession. The beauty is not completely discretionary I think.

  • @mohamedanderson8014
    @mohamedanderson8014 3 дня назад

    I’ve been buying over the last couple months!

  • @dariocasabella2744
    @dariocasabella2744 4 дня назад +2

    Can you please make a video on luxury companies like LVMH and Kering? Hermes doesn't look that attractive to me now

  • @Deepzombie
    @Deepzombie 4 дня назад

    Thanks for the walk through of the company! What do you think about NRDE? Nu ride is a special situation, it is what is left after the fraud and crash of lordstown. Essentially it looks like the exit company carry more cash than the market cap. Since it basically is a spac the bet is on the current management and what they will do with that cash. Is it a cigar butt that young Buffet would taken the last puff on?

  • @fayezalwattar6519
    @fayezalwattar6519 4 дня назад +2

    Hi Sven, can you make a video for books to buy please.

  • @anderson6379
    @anderson6379 3 дня назад

    Thank you for consistent teaching 🙏

  • @yoramhtm
    @yoramhtm 3 дня назад +1

    Great Video Sven. Thank you

  • @jeroen7356
    @jeroen7356 4 дня назад +2

    What about Lanxess from a value perspective?

  • @orginaleinstein
    @orginaleinstein 4 дня назад +8

    Thanks Sven, I would love to see a review of LULU. Cheers!

    • @Value-Investing
      @Value-Investing  4 дня назад +6

      I think my wife bought something recently, thus the stock will boom!!!

    • @lvg8200
      @lvg8200 4 дня назад

      @@Value-Investing😂

    • @stevenbond4637
      @stevenbond4637 3 дня назад

      LULU to the moon, Francois Rochon wouldn't lie to me :)

  • @ckeegan74
    @ckeegan74 4 дня назад +1

    Thank you Sven. I would like to suggest looking at ABEV stock.

  • @nixielee
    @nixielee 3 дня назад

    Ulta's Mexico thing is half-baked at best, clearly feeling the heat from LVMH, and Europe would be even harder. Waiting for a lower price for sure

  • @thomaskismul8541
    @thomaskismul8541 4 дня назад +4

    Great video, Sven, thanks! Have you ever looked at the difference at specialisation vs global value search? There are a couple value investors in norway i follow closely who have done 40% cagr the last decade, mostly specialising in 3 industries in Scandinavia. Would love to hear your thought

    • @Value-Investing
      @Value-Investing  4 дня назад +1

      interesting, thanks for sharing!

    • @sangho6522
      @sangho6522 2 дня назад

      Can you provide name of these investors?

  • @thewonderof06790
    @thewonderof06790 3 дня назад

    been holding since 2010. Happy to say the least. Bought more recently cheapest by PE it has ever been.

  • @JackDespero
    @JackDespero 3 дня назад +1

    I don't think that model will work in Europe, if that is their next step after SA.
    Most people in Europe do not go to malls to buy stuff, that is why malls keep failing all across Europe.
    So a megastore mall-like beauty shop is not going to work.
    The products themselves may work if they are sold in standard shops, but the "all in one model" won't.
    I have seen plenty of Sephora stores, and most of them are small shops with the selection of items. I have never seen a mega Sephora store.

  • @yr99jparkin
    @yr99jparkin 3 дня назад

    Hi Sven, would love your perspective on LPSN (NASDAQ)!

  • @aoru12369
    @aoru12369 3 дня назад

    kind of a long-shot, but id like to see some uranium part of the market commentary. and if not a general comment, maybe a look into any of the tickers: UUUU, UEC, KAP (id really like to hear about this one), LEU
    puno pozdrava iz zagreba

  • @sheanathan3566
    @sheanathan3566 4 дня назад

    Nice analysis

  • @thewonderof06790
    @thewonderof06790 3 дня назад

    I was at the lumber yard today. The "men" at the lumber yard had longer painted nails than the girls clerking at the grocery store. Strange business to say the least.

  • @aristark559
    @aristark559 7 часов назад

    wow great job, looks really good, bought a small amount

  • @facundobuzali5342
    @facundobuzali5342 2 дня назад

    Love this brand and stock! My mum, cousin and girlfriend could live in one store..

  • @user-ng5it8vu3m
    @user-ng5it8vu3m 3 дня назад +63

    Honestly, I don't understand why you're discussing these dubious schemes. There are plenty of options like Unimantic and similar ones that are fast and profitable.

    • @k4ir0s
      @k4ir0s 3 дня назад

      Investing is about making money.

  • @DK-qf6pr
    @DK-qf6pr 4 дня назад +1

    Sven what's your opinion that ULTA is all over RUclips overpromoted and now also in the investing channels like yours (because of the comments). Reminds me Tesla, Bitcoin etc shilling case

    • @user-ku5be4nc3g
      @user-ku5be4nc3g День назад

      I've heard about Ulta some longer time ago on this channel and did my 25% in few Months with them

  • @BtotheW
    @BtotheW 4 дня назад

    good day Sven

  • @Alex-qw7iz
    @Alex-qw7iz 2 дня назад

    looks very interesting!

  • @vig6912
    @vig6912 4 дня назад +7

    I still remember back in 2018 people talking the same about Walgreens. It is a compounder, dividend aristocrat, great business, great margin UNTIL IT WASN'T

    • @Daniel-ld3zi
      @Daniel-ld3zi 4 дня назад +1

      If someone said great margin then that was their problem lol

    • @DK-qf6pr
      @DK-qf6pr 4 дня назад

      ​@@Daniel-ld3ziwhy?

    • @Daniel-ld3zi
      @Daniel-ld3zi 4 дня назад

      @@DK-qf6pr profit margin was always around 5% and gross margin was in a steady trend down.

  • @mjd_sharaf
    @mjd_sharaf 4 дня назад +3

    Hey Sven, could you do PAYC?

  • @MichaelBeneker
    @MichaelBeneker День назад

    Can you review avpt stock? Its doing software protection for Microsoft and other big companies...

  • @CristianHernandez-er4zn
    @CristianHernandez-er4zn 3 дня назад

    What about Televisa $TV from Mexico? 🎉

  • @MrFrescocotone
    @MrFrescocotone 21 час назад

    Agree on the analysis. Great company but risk/reward ratio right now doesn't make it a compelling investment

  • @ayo9057
    @ayo9057 3 дня назад

    Shoplifters love Ulta.

  • @Ironmanalby
    @Ironmanalby День назад

    You are right Sven good business so farbut competition is very strong amd sephora has a better model then ulta,ask to a girl

  • @realestalex2728
    @realestalex2728 3 дня назад

    Don't you think you focus too much on the quantitative? I mean you would need to know about the make up industry to undertsand what this company has to offer

  • @georgesamaras2922
    @georgesamaras2922 4 дня назад +5

    next: LULU

  • @davidkoba
    @davidkoba 3 дня назад

    Retail, the “widow maker”.

  • @johnmcquaid7524
    @johnmcquaid7524 4 дня назад +3

    🥇

    • @vermasean
      @vermasean 4 дня назад +1

      And the medal to prove it 🙌

  • @whiskey_tango_foxtrot__
    @whiskey_tango_foxtrot__ 4 дня назад +4

    Beauty has always been recession and inflation proof. Almost as good as cigarettes and booze.

    • @georgesamaras2922
      @georgesamaras2922 4 дня назад

      but they aint millenial zoomer proof

    • @afonsodeportugal
      @afonsodeportugal 4 дня назад

      @@georgesamaras2922 Why not? Millennials and zoomers are also vain and frivolous! 😜

    • @Value-Investing
      @Value-Investing  4 дня назад +2

      beauty yes, but this is a bit different because you can spend on them pampering you or not...

  • @Witnessmoo
    @Witnessmoo 3 дня назад

    Analyse Burford Capital

  • @Madridstrat
    @Madridstrat Час назад

    I read a comment from someone who bought NVDA shares in 2016 based on Cramer's advice, which underscores the value of information and insight. I believe AI is on the verge of a new phase, and I plan to invest my $260k savings to capitalize on substantial gains

    • @TheDayTheDay312
      @TheDayTheDay312 Час назад

      Absolutely crucial in the stock market: information, insight, and predictability. As an early investor in NVDA, AVGO, ANSS, and LRCX, my finacial advisor guidance was invaluable.

    • @Duttonmuffins
      @Duttonmuffins Час назад

      People often underestimate the importance of financial advisors. Over 50 years of data reveal that those who work with advisors typically earn more than those who go it alone. I've been fortunate to work with one for 13 years, resulting in a $2 million portfolio, largely from early investments in AI and other growth stocks.

    • @JesseMayhill
      @JesseMayhill Час назад

      I have cash in the bank that I want to invest in the stock market, but I'm worried about choosing the wrong stocks. Could you refer me to your financial advisor?

    • @Duttonmuffins
      @Duttonmuffins Час назад

      I'm cautious about giving specific recommendations since everyone's situation varies, but I've worked with "Melissa Elise Robinson" for years and highly recommend her. Look her up to see if she meets your criteria.

    • @Madrasschebe
      @Madrasschebe Час назад

      Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

  • @whiskey_tango_foxtrot__
    @whiskey_tango_foxtrot__ 4 дня назад +1

    Too bad they dont pay a dividend.

  • @dariovukadin1539
    @dariovukadin1539 2 дня назад

    Ulta is a cannibal stock. They are buying back stock worth 1 billion in 2024 alone. I havent seen anyone mentioning that.

  • @cakeismtrader4227
    @cakeismtrader4227 4 дня назад +3

    ELF is. Better buy

  • @HS-PGA
    @HS-PGA 3 дня назад

    Too expensive