Welcome to episode 154 of Magic Markets. We’re diving deep into the beauty sector this week, exploring stocks that bring a touch of glam to the market scene.

Moe has his sights set on Ulta Beauty, the US-based beauty specialist retailer. After trading at around $546 a share back in April 2023, Ulta Beauty has seen some sharp moves, corrections, and a bounce. Moe takes us through the technical details, emphasising the importance of key support levels and the dynamics between fundamental results and market sentiment.

Ghost chose to delve into the South African beauty scene, focusing on Dis-Chem, the pharmacy group that is more than just a pharmacy: it’s a beauty and healthcare haven. Unlike arch-rival Clicks, Dis-Chem has included dispensaries in the strategy since day one. This might explain why the market share over-indexes on front shop categories like medical suppliers, whereas Clicks is strong in small appliances. By also covering several other elements of the Dis-Chem business model (including the acquisition of Baby City), Ghost delivers insights that can be applied when assessing any retailer.

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