Is Ross Stores the Undervalued Retail Stock You've Been Waiting for?

Zacks12-18

Ross Stores, Inc. ROST emerges as an attractive value opportunity in the Retail - Discount Stores industry, trading at a forward 12-month price-to-earnings ratio of 22.8, below the industry average of...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2492184983?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/wHvTdRdYeM9ER2OBhWrWmA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/9c9168bcd74fab6e906e343dad460865","is_english":true,"pubTime":"2024-12-18 21:23","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2492184983","market":"us","top_or_hot":-1,"title":"Is Ross Stores the Undervalued Retail Stock You've Been Waiting for?","media":"Zacks","content":"<div>\n<p>Ross Stores, Inc. ROST emerges as an attractive value opportunity in the Retail - Discount Stores industry, trading at a forward 12-month price-to-earnings ratio of 22.8, below the industry average of...</p>\n\n<a href=\"https://finance.yahoo.com/news/ross-stores-undervalued-retail-stock-132300414.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Ross Stores the Undervalued Retail Stock You've Been Waiting for?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Ross Stores the Undervalued Retail Stock You've Been Waiting for?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-18 21:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ross-stores-undervalued-retail-stock-132300414.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Ross Stores, Inc. ROST emerges as an attractive value opportunity in the Retail - Discount Stores industry, trading at a forward 12-month price-to-earnings ratio of 22.8, below the industry average of...</p>\n\n<a href=\"https://finance.yahoo.com/news/ross-stores-undervalued-retail-stock-132300414.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ROST","symbol_name":"罗斯百货有限公司","start_time":0,"source_url":"https://finance.yahoo.com/news/ross-stores-undervalued-retail-stock-132300414.html","article_id":"2492184983","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/wHvTdRdYeM9ER2OBhWrWmA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/9c9168bcd74fab6e906e343dad460865"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492184983","pubTimestamp":1734528180,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Ross Stores, Inc. ROST emerges as an attractive value opportunity in the Retail - Discount Stores industry, trading at a forward 12-month price-to-earnings ratio of 22.8, below the industry average of 31.71x and the Retail-Wholesale average of 25.77x. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the Retail-Wholesale sector. Furthermore, ROST’s VGM Score of B underscores its appeal as a potential investment.ROST stock is currently priced at $150.85, trading at a 7.8% discount from its 52-week high of $163.60 reached on Aug. 23, 2024. The stock is currently trading above its 200-day and 50-day moving averages of $143.52 and $146.19, respectively, highlighting a sustained upward trend.Ross Stores stock has been trending up the charts, recording growth of 8.6% in the past month. This upside outpaces the broader Retail-Wholesale sector’s return of 7.4% and the Zacks Retail - Discount Stores industry's 3.9% growth i","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ROST":"罗斯百货有限公司","BK4094":"服装零售","DECK":"Deckers Outdoor Corporation","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","ANF":"爱芬奇","GAP":"Gap, Inc","BK4588":"碎股","BK4146":"鞋类","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD"},"translate_title":"Ross Stores是您一直在等待的被低估的零售股吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ANF":1,"DECK":1,"GAP":1,"ROST":1},"content_text":"Ross Stores, Inc. ROST emerges as an attractive value opportunity in the Retail - Discount Stores industry, trading at a forward 12-month price-to-earnings ratio of 22.8, below the industry average of 31.71x and the Retail-Wholesale average of 25.77x. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the Retail-Wholesale sector. Furthermore, ROST’s VGM Score of B underscores its appeal as a potential investment.\nImage Source: Zacks Investment Research\nROST stock is currently priced at $150.85, trading at a 7.8% discount from its 52-week high of $163.60 reached on Aug. 23, 2024. The stock is currently trading above its 200-day and 50-day moving averages of $143.52 and $146.19, respectively, highlighting a sustained upward trend.\nROST Trades Above 200 & 50-Day Moving Average\nImage Source: Zacks Investment Research\nRoss Stores stock has been trending up the charts, recording growth of 8.6% in the past month. This upside outpaces the broader Retail-Wholesale sector’s return of 7.4% and the Zacks Retail - Discount Stores industry's 3.9% growth in the same period. ROST’s shares have also surpassed the S&P 500 Index’s appreciation of 3.1% in the same timeframe.\nROST Stock Past Month Performance\nImage Source: Zacks Investment Research\nRoss Stores Growth Driven by Strategic Expansion and Value Offerings\nRoss Stores continues to benefit from strong customer response to its merchandise across both banners, driving a 1% improvement in comparable store sales (comps) in third-quarter fiscal 2024. This growth was primarily fueled by increased customer traffic and larger basket sizes, reflecting a rise in the number of shoppers and the volume of purchases per visit. Consequently, sales grew 3% year over year during the quarter.The company’s proven business model emphasizes competitive bargains, making its stores appealing destinations across various economic conditions. Additionally, its off-price model delivers a strong value proposition and leverages micro-merchandising to optimize product allocation and improve margins. This strategy ensures that ROST delivers in-demand products while maintaining cost efficiency, which resonates well with budget-conscious shoppers. The continued focus on offering designer and branded goods at discounted prices has helped Ross Stores maintain its competitive edge amid massive economic pressure.Ross Stores has been consistent with the execution of its store expansion plans over the years. The company’s store expansion efforts are focused on continually increasing penetration in the existing and new markets. Given the large retail closures and bankruptcies over the past several years, Ross Stores earlier raised its long-term store expansion targets. The company expects to expand “Ross Dress for Less” to 2,900 stores and dd’s DISCOUNTS to 700 stores.\nUpward Earnings Estimate Revisions Signal Confidence in ROST\nReflecting optimism around ROST, analysts have revised their EPS estimates upward. In the past 30 days, analysts have increased their fiscal 2024 and 2025 estimates by 1% to $6.17 and 0.8% to $6.67 per share, respectively. These estimates indicate expected year-over-year growth rates of around 10.9% and 8.1%, respectively.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.\nImage Source: Zacks Investment Research\nWhat Could Derail ROST Stock’s Momentum?\nDespite its strong performance and strategic initiatives, Ross Stores anticipates a more moderate growth trajectory for the fourth quarter of fiscal 2024. The company expects comps growth of 2-3%, compared with growth of 7% achieved in the fourth-quarter of fiscal 2023. The company foresees fourth-quarter EPS to be $1.35-$1.41, down from $1.82 in the prior-year quarter.Ross Stores has been witnessing higher costs for a while now. The company’s cost of goods sold (COGS) inched up 1.9% year over year in third-quarter fiscal 2024. Selling, general and administrative (SG&A) expenses in the reported quarter rose 2.8% year over year. Our model predicts COGS to increase 2.8% year over year for fiscal 2024. We expect SG&A expenses to increase 5.7% year over year for the fourth quarter and 4% for fiscal 2024.\nFinal Thought on ROST Stock\nInvestors should consider Ross Stores stock due to its strategic focus on value-oriented off-price retailing, offering branded and designer goods at discounted prices. This approach has enabled the company to maintain its competitive edge and stay aligned with its long-term growth objectives.However, management has acknowledged challenges facing its core customer base, primarily low-to-moderate-income shoppers under pressure from persistently high costs for essential goods. This economic strain restricts their discretionary spending, impacting sales in the near term. Currently, the stock has a Zacks Rank #3 (Hold), reflecting a balanced outlook for its future performance.\nStocks to Consider\nWe have highlighted three better-ranked stocks in the broader sector, namely Deckers DECK, Abercrombie & Fitch Co. ANF and The Gap, Inc. GAP.Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.\nDECK delivered an average earnings surprise of 41.1% for the trailing four quarters. The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.7%, respectively, from the year-ago reported figures.Abercrombie, a leading casual apparel retailer, currently sports a Zacks Rank of 1. Abercrombie has a trailing four-quarter earnings surprise of 14.8%, on average.The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 14.9% and 68.9%, respectively, from the year-ago reported figures.Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently flaunts a Zacks Rank #1.The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the year-ago reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAbercrombie & Fitch Company (ANF) : Free Stock Analysis Report\nDeckers Outdoor Corporation (DECK) : Free Stock Analysis Report\nRoss Stores, Inc. (ROST) : Free Stock Analysis Report\nThe Gap, Inc. (GAP) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492184983"}