Price action reveals Ulta Beauty Inc, Ferrari N.V., Starbucks as the stocks to watch as they near pivotal price targets in the near term.
Yesterday's session summary: Leading equity indices in the US rose as Dow Jones gained 1.65% and closed at 33,674. S&P 500 ended the session at 4,136.25 after a 1.85% gain.
What is a Price Target?
A "price target" is an estimate of the future price of a stock based on earnings forecasts and assumed valuation multiples. Price targets are typically generated by respected market analysts who believe a stock to be fairly valued relative to its projected and historical earnings. Target prices are used to evaluate stocks and can help investors evaluate the potential risk/reward profile of a stock. Check out this rundown of consumer_cyclical stocks and their price targets.
Buyers pushing Ulta Beauty towards its price target of $523.46; currently at $520.05
After ending Thursday at $514, Ulta Beauty Inc went up to $523.27 only to drop back, yet still traded well overall and closed at $520.05 yesterday. Yesterday's gains are in contrast to Ulta Beauty's bearish trend (lasting 6 days) during which it lost $37.43 of its value. The day's trading volume totalled 479,192 shares — slightly below the 21-day average of 533,148.
8 days ago the beauty salon company reached a significant high of $551.43 but has consequently lost 6.79% since then. The company has a market cap of $26 billion with an average daily volume of 533,148 shares. The S&P 500 has been doing worse in 2022, it has been passing it by 2.71%. Ulta Beauty last reported revenue of $3.23 billion with an EPS of $6.68.
It will be interesting to follow how Ulta Beauty's run now faces a challenge at $523.46, which is only $3.41 away.
Buyers pushing Ferrari towards its price target of $298.17; currently at $296.81
Ferrari's run now faces a challenge at $298.17, which is only $1.36 away from the line. Overcoming it might send the company towards their next major resistance line— this will surely be interesting to follow.
Ferrari has posted further gains as part of an 8 day trend that has already seen the stock gain $16.38. yesterday's session pointed in the same direction — the illustrious car manufacturer rallied 1.72% and maintained $296.81. Daily trading volume (427,218 shares) increased, making up 114% of the 21-day average (374,847).
Buyers pushing Starbucks towards its price target of $108; currently at $107.21
Starbucks's recent run now faces a major challenge as concentrated supply is likely found at $108 with price action currently 79 cents away.
Starbucks has posted further gains as part of a 3 day trend that has already seen the stock gain 76 cents. yesterday's session pointed in the same direction — after closing at $104.72 on Thursday, Starbucks rallied as high as $107.48 but ended the day at $107.21. Daily trading volume (7.59 million shares) increased, making up 113% of the 21-day average (6.70 million).