Ulta Beauty edges out Abercrombie & Fitch as the better consumer stock buy in 2026

Industry
โดย The Motley Fool·Read original
Summary · why it matters

Ulta Beauty is favored over Abercrombie & Fitch as the stronger consumer stock pick for 2026, according to an analysis by The Motley Fool. Abercrombie & Fitch posted fiscal 2026 revenue of nearly $5.3 billion and net income of approximately $566 million, while Ulta Beauty generated nearly $12.4 billion in revenue and net income of nearly $1.2 billion. Both companies carry a debt-to-equity ratio of about 0.8x, but Ulta's forward P/E of 16.5x is double Abercrombie's 8.3x, though still below the sector benchmark of 29.6x. The analysis highlights Ulta's expected 11% per-share net income growth and a $1 billion-plus share buyback, contrasting with Abercrombie's anticipated net income decline despite top-line growth. Ulta's long track record and shift toward greater per-share profitability give it the edge, even as it faces risks from the end of its Target partnership and brand concentration.

Impact on stocks 4

Consumer Discretionary± Mixed · 2 stocks
Ulta Beauty Inc
ULTA
▲ PositiveCapitalrelevance

Analysis picks Ulta as the better consumer stock buy for 2026, citing expected 11% per-share net income growth and $1B+ buyback.

Abercrombie & Fitch Company
ANF
▼ NegativeCapitalrelevance

Analysis favors Ulta over Abercrombie, citing Abercrombie's anticipated net income decline and lower forward P/E.

Consumer Staples▼ · 2 stocks
Target Corporation
TGT
▼ NegativeDemandrelevance

Ulta faces risk from the end of its Target partnership, which could impact demand.

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