- Formerly high-flying ULTA  stock whacked for 2Q EPS miss, slowing cosmetics growth

- Plunge seems overdone; return to stable growth could push stock 20%+, in our view

- ULTA insiders (with prescient past timing) buying shares during the downdraft

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What if the stock market had a rewind button? In other words, what if you had a chance to go back in time and buy the stock of a well-run, consistent growth company at a level once reached before it had a big run up? 

The shares of Ulta Beauty (ULTA), Chicago-based retailer of cosmetics, skin care and other personal products and services, could fit that bill. ULTA’s stock has been one of the best performers of the last decade. However, because of an earnings miss (Aug. 29) for the second quarter ending Aug. 3, ULTA shares were spanked hard, falling 35% in a few days.

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The stock is down 1/3 to $252 from a recent high of $368.  The market is often tougher on the very companies with strong track records like ULTA, but this stock plunge seems like a long-term buying opportunity if, as I believe, ULTA can defeat its challenges.

Back in August ULTA’s earnings fell short of analysts’ forecasts. Worse, however, was that guidance was cut to 4%-6% same-store sales growth this year—a number most re...

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