This cosmetics company is an institutional favorite, with 89.78% of shares outstanding held by institutions. Big money buyers have also increased their positions by 6,773,735 shares recently. The sell recommendation is based on earnings pressure on the stock.
Buy: ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA)
from Cabot Growth Investor (formerly Cabot Market Letter)
ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA) is still holding its 50-day line after a multi-month run, which is a good sign. The uptick in gas prices during the past couple of months could hurt perception of retail stocks, but we still believe ULTA has become an institutional favorite thanks to its huge story and top-notch management team. If you don’t own any, we’re OK with buying some around here.
Michael Cintolo, Cabot Growth Investor, www.cabot.net, 978-745-5532, May 6, 2015