2 Consumer-Centric Stocks to Consider as Earnings Approach: OLLI, ULTA

While Q2 results from Nvidia NVDA will highlight this week’s earnings lineup, a pair of consumer-centric stocks are also worthy of attention in Ollie’s Bargain Outlet OLLI and Ulta Beauty ULTA.Set to release their Q2 reports on Thursday, August 28, Ollie’s and Ulta stock have drifted toward 52-week highs and are sporting a Zacks Rank #2 (Buy), respectively.Driving their pleasant stock performances over the last year has been Ollie’s steady expansion as a brick-and-mortar value retailer of brand-name merchandise, with Ulta reaping the benefits of a revamped product line that has boosted consumer interest for the cosmetics and fragrance leader.  Image Source: Zacks Investment Research Ollie’s & Ulta Q2 ExpectationsBased on Zacks' estimates, Ollie’s Q2 sales are thought to have increased 14% to $662.68 million compared to $578.38 million a year ago. Even better, Ollie’s Q2 earnings are expected to spike over 16% to $0.91 per share from EPS of $0.78 in the comparative quarter.Notably, Ollie’s has reached or exceeded EPS estimates in three of its last four quarterly reports with an average earnings surprise of 2.02%. It’s also noteworthy that the Zacks ESP (Expected Surprise Prediction) indicates Ollie’s should meet its Q2 EPS expectations with the Most Accurate and recent estimate among Wall Street analysts being on par with the underlying Zacks Consensus of $0.91.Image Source: Zacks Investment ResearchAs for Ulta, its Q2 sales are projected to be up 4% to $2.65 billion from $2.55 billion in the prior period. Although Ulta’s Q2 EPS is expected to dip 5% to $5.03, the Zacks ESP suggests the beauty retailer could comfortably exceed these expectations with the Most Accurate and recent estimate at $5.13 (Current Qtr below). Plus, Ulta has exceeded EPS estimates in three of its last four quarterly reports with an impressive average earnings surprise of 11.88%.  Image Source: Zacks Investment Research Positive EPS RevisionsAttributing to the buy ratings for Ollie’s and Ulta stock is that full-year earnings estimate revisions have remained higher over the last 60 days for their current fiscal 2026 and FY27.With its EPS revisions slightly up in the last two months, Ollie’s annual earnings are currently slated to spike 14% in FY26 and are projected to pop another 14% in FY27 to $4.28 per share.Image Source: Zacks Investment ResearchPivoting to Ulta, annual earnings are now expected to dip 7% in its FY26 to $23.63 per share, but these estimates are up over 1% in the last 60 days. Magnifying Ulta’s robust bottom line is that FY27 EPS is projected to rebound and rise 9% to $25.84, with these estimates up nearly 1% in the last two months as well.Image Source: Zacks Investment Research Bottom LineAs two of the top momentum stocks of late, Ollie’s and Ulta stock could be poised for higher highs, especially if they can reach or exceed their Q2 expectations. In the last three months, Ulta stock has now surged more than +25% and checks an “A” Zacks Style Scores grade for Momentum, with Ollie’s having a “B” score in this regard and up over +15% in the last three months. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks