Stocks in Play - May 30th 2025

Stocks in Play: ULTA, PATH

Author

Irish Born Investor
May 30, 2025 • Estimated Reading Time: 4 minutes

Stocks in Play - May 30th 2025

Stocks in Play: ULTA, PATH

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) Ulta Beauty Inc. (ULTA) (Rating: A, Multi-Day)

Industry Group: Specialty Stores, Market Cap: $19b, Float: 45m Short Interest 7%, Days to Cover: 3.15, Exchange: NASDAQ

Catalyst: Strong Beat on EPS ($6.70 vs est. $5.77), Solid Beat on Revs, Guidance Raised. Beat on Operating Margins. Very strong earnings report and bullish commentary with ‘‘Ulta Beauty Unleashed’’ plan successfully implemented. KPI’s shifting with sales distributions diversifying. Slower mover, but stock still well off highs and coming right into a Fast Zone large gap.

"Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth. The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve. We believe our model uniquely positions us to win, and we will continue to focus on serving our guests while staying agile as we move through the year."

— Kecia Steelman, President and Chief Executive Officer

Honorable Mention to:

PATH - Solid earnings report, Beat on EPS, Revs, ARR & Operating Margins. Raised Full Year Guide. Chart coming into a difficult resistance zone of $15 but severely beaten down name. Not sure if market conditions will be conducive to this moving strongly today but worth monitoring.

Market Awareness

This has been an extreme run but any metric. Some breadth charts here that I like to refer to put that in perspective. We are certainly due a pullback or at least some choppy action. I’m still watching the individual stocks but the follow through on many names is hit and miss and the likelihood of turbulence increases as the macro news gets more uncertain - Tariff Court Case, Tariff Deadlines etc.

This doesn’t stop me trading but a little bit of air may very well be let out of stocks here in the short term (days not weeks). I am looking to protect great gains in this period and wait for the fat pitch to come around again. Still interested in individual names and strong catalysts but I think Day One moves are going to have less follow through and some delayed reactions are failing or reverting to choppy conditions.

Worth noting it’s the last trading day of the month also. I find these to always be quite odd trading maybe due to rebalancing and other mechanics going on.. Another solid week, Going into the weekend happy. Always be in control.

Sources & Services I Use in my Trading:

PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.

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