Will Ulta Beauty (ULTA) Lose Market Share?

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Having carried over some of the strength from the previous year into the first quarter, mid-cap stocks reversed course and ended the second quarter at a loss. The Russell Midcap Growth Index (down 3.21%) slightly outperformed the Russell Midcap Value Index (down 3.40%) in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Carillon Eagle Mid Cap Growth Fund highlighted stocks like Ulta Beauty, Inc. (NASDAQ:ULTA) in the second quarter 2024 investor letter. Ulta Beauty, Inc. (NASDAQ:ULTA) is a US-based specialty beauty retailer. The one-month return of Ulta Beauty, Inc. (NASDAQ:ULTA) was -3.14%, and its shares lost 12.43% of their value over the last 52 weeks. On August 19, 2024, Ulta Beauty, Inc. (NASDAQ:ULTA) stock closed at $377.06 per share with a market capitalization of $17.992 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Ulta Beauty, Inc. (NASDAQ:ULTA) in its Q2 2024 investor letter:

Ulta Beauty, Inc. (NASDAQ:ULTA) operates a chain of beauty stores offering cosmetics, fragrance, skin, and hair care products. Management disclosed during the quarter at a conference that business was slowing more than expected and ultimately lowered guidance. This slowdown does not appear to be happening uniformly across the beauty landscape and we are concerned Ulta may be losing market share.”

A photograph of a customer testing out different products in the skincare aisle at a store.

Ulta Beauty, Inc. (NASDAQ:ULTA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Ulta Beauty, Inc. (NASDAQ:ULTA) at the end of the second quarter which was 52 in the previous quarter. While we acknowledge the potential of Ulta Beauty, Inc. (NASDAQ:ULTA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Ulta Beauty, Inc. (NASDAQ:ULTA) and shared the list of best stocks analyst recommends diversifying your portfolio. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.