10 Stocks That Became Analyst Favorites This Week

2. Ulta Beauty Inc. (NASDAQ:ULTA)

ULTA Beauty Inc. is a retailer specializing in beauty products in the US. The company sells both private-label and branded products in its stores. Despite a disappointing performance in the last year, the stock is up 25% in the last two months, so an analyst upgrade was coming.

Morgan Stanley analysts consider the company to be operating in an attractive category that continues to see healthy spending. Beauty spending is increasingly becoming a non-discretionary expense and people see it as an integral part of their lives. On top of that, the outlook for the beauty industry itself is quite promising in 2025. When one combines this with the 44 million loyalty members that ULTA has and its $500 price target, investors are likely to be attracted to the stock.