ULS reports its Q1 2026 earnings on May 20 against a backdrop of rising analyst conviction — but options traders are loading up on puts at a level rarely seen in the past year.
Options positioning is the most striking signal heading into the print. The put/call ratio has run well above its recent average, climbing from around 1.3 in mid-April to a recent peak near the 52-week high of 4.40 on May 8. It has since eased to 3.53, still above its 20-day mean of 2.95 and just 0.6 standard deviations from it. That tells a story of investors consistently preferring downside protection into this event, even as the stock has recovered — ULS is up 10.6% over the past month to $99.00, though it slipped 1.6% on the last session.
The analyst community moved in the opposite direction after the most recent earnings. Following what appears to have been a strong prior print — the stock jumped 16.4% on May 5 last year — multiple firms raised targets meaningfully in early May. Wells Fargo lifted its Overweight target to $120 from $102. JP Morgan and Citigroup both raised targets to $108 and $106.40 respectively, though both hold Neutral ratings. UBS moved to $110. The consensus target now sits at $107.45, roughly 8.5% above the current price, suggesting the Street sees room to run but remains split on conviction — more Neutral ratings than Buy ratings anchor the consensus.
The fundamental case for bulls rests on ULS's market position in testing, inspection, and certification — a fragmented sector where the company's brand commands recurring, regulation-driven demand. EPS momentum ranks in the 87th percentile both on a 30-day and 90-day basis. Forward EPS growth ranks in the 89th percentile year-over-year. Bears focus on China exposure, which accounts for roughly 24% of revenue, and the risk that regulatory headwinds globally could compress demand for certifications. The stock trades at 41.8x trailing earnings and an EV/EBITDA of 22.8x — pricing that leaves little room for disappointment.
Short sellers are not leading the charge against ULS. Short interest has fallen roughly 46% from its April peak and now stands at 3.4% of the free float. Borrowing costs are negligible at 0.52% annualised, and availability in the lending pool is ample. The short score has also declined steadily over two weeks from 41.7 to 37.1, pointing to diminishing bearish conviction in the lending market. Insider activity adds a mild note of caution: the COO and CFO both sold shares in early May, though the net 90-day insider figure is positive at roughly 115,000 shares, reflecting award activity rather than open-market purchases.
The May 20 print therefore tests whether ULS can deliver EPS growth that justifies a near-42x multiple — and whether management can reassure investors on China-linked revenue trends amid an elevated put/call ratio that suggests the options market is not fully convinced by the post-Q4 rally.
See the live data behind this article on ORTEX.
Open ULS on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
ULS heads into its Q1 2026 earnings print with the stock running hard but options investors loading up on protection. The most striking feature of the setup is the sharp divergence between price momentum and options…
UL Solutions heads into its May 5 Q1 earnings with options traders at their most defensive in months. The options market is sounding a clear caution signal. The put/call ratio has climbed to 2.51 — well above its…
