Why Bellafiore Likes Ulta Salon

Mike Bellafiore was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

SMB Capital Co-Founder Mike Bellafiore said on Benzinga's #PreMarket Prep that he would look to trade Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) from the long side following today's earnings. Bellafiore said that he "really liked this report," noting that the company beat earnings expectations and same-store sales.

In Ulta's earnings report, the company showed year-over-year growth of 34 percent on 11.4 percent comps. The company, however, did not raise 2015 guidance.

Bellafiore said that he would not just hit buy. Instead, he waits until after 45 minutes into the trading day as price action has calmed down before he starts to look at his "patterns." The easiest pattern he identified would be if Ulta gapped open and stayed there, he would look to buy into support.

At the moment, however, it looks as though that pattern has not materialized. Ulta initially gapped higher before selling off amidst general market weakness.

Shares are currently trading down 0.5 percent to $155.44. Shares earlier hit a 52-week high at $159.85.