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Better Buy: Nike vs. Ulta Beauty


My, how quickly things change. One minute it's February, the market is crashing, and bargain prices for proven stocks abound. Next minute it's September, the market is hitting new all-time highs, and many stocks feel too expensive.

For two examples of expensive stocks, look at athletic-apparel company Nike (NYSE: NKE) and makeup retailer Ulta Beauty (NASDAQ: ULTA). Consider the price-to-earnings valuation metric. From both a trailing and a forward perspective, these stocks trade at historically high valuations.

NKE PE Ratio (Forward) Chart

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Source Fool.com

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