Recently put in the portfolio, Ulta Beauty Salon (ULTA) has shown some great leadership in the retail space. This is a difficult area to handicap as it relates to an investment thesis. Yet, with some great earnings momentum and a strong chart to boot this stock has staying power. Jim Cramer has interviewed the CEO often on Mad Money and always comes away feeling positive about the name. Given the seasonal trends (slower during Spring/Summer) it is interesting to find this name up near the all time highs, and leading stocks in the group higher. Bryan Ashenberg recently penned a great review of their earnings. The chart of ULTA shows the stock basing at a high level, consolidating the gap higher from the prior earnings (Mar 2015). While sideways action is not bullish or bearish it is certainly needed to digest a big move higher. The indicators are still positive and the MACD is still on a buy signal though it may be weaker after the post earnings decline last week. Still, the stock action is constructive here and we would consider adding more to our portfolio on any weakness toward 148. The Trifecta Stocks system takes a triple filter approach, applying the quant, technical and fundamental screens before entering new trades in the portfolio. If one of them does not agree with the rest then we must pass on the idea. Since inception, the approach has been been highly successful, the Trifecta portfolio outperforming its benchmark (and the market in general) significantly. Quant screen subscribers have migrated over to Trifecta to benefit from the additional technical and fundamental filters that seem to be a difference maker for our portfolio performance, and with names such as ULTA we are certainly on our way to even better performance.We like this stock and would add on any weakness.
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