Sally Beauty rises to $16.13 after Q3 results

This is also happening in a beauty market that remains resilient. Ulta Beauty has said the overall U.S. beauty market expanded in 2025 and early 2026, reinforcing the idea that Sally is not fighting a collapsing category so much as trying to win back share in a healthy one. For long-term investors, that distinction matters. Turnarounds are far more powerful when they happen inside a growing market, because even modest operational gains can translate into outsized earnings leverage.

The technical picture underscores the shift in sentiment, though investors should remember that price momentum can cool quickly. Sally Beauty’s shares now sit well above both the 50-day and 200-day moving averages, while its RSI is elevated at 71.4, a sign the stock has become extended after the rally. That does not negate the business progress, but it does suggest the market has already started to price in better fundamentals.

For shareholders, the bigger question is whether management can turn this into a durable, multi-year story. Sally does not need to become a glamour stock. It needs to keep improving same-store sales, protect margins, and convert its leaner store base into consistent free cash flow. If it can do that, the stock could keep compounding from a much lower base than larger beauty peers.

There are still risks. Beauty spending can wobble if the consumer weakens, and store closures can mask underlying pressure if digital growth slows. Competition is also intense, especially from bigger chains with broader assortments and stronger brand pull. But for investors willing to think in years rather than weeks, Sally Beauty’s latest report is the kind of progress that can justify a place on the watchlist — and maybe in a diversified portfolio if the turnaround keeps advancing.