Ross Stores, Inc. (NASDAQ:ROST) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?

Simply Wall St.2024-12-22

It is hard to get excited after looking at Ross Stores' (NASDAQ:ROST) recent performance, when its stock has declined 2.9% over the past week. However, stock prices are usually driven by a company’s ...

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However, stock prices are usually driven by a company’s ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ross-stores-inc-nasdaq-rost-120021122.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>Ross Stores, Inc. 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(NASDAQ:ROST) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-22 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ross-stores-inc-nasdaq-rost-120021122.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It is hard to get excited after looking at Ross Stores' (NASDAQ:ROST) recent performance, when its stock has declined 2.9% over the past week. However, stock prices are usually driven by a company’s ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ross-stores-inc-nasdaq-rost-120021122.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":"LU2210150020.SGD","symbol_name":"Natixis Thematics Subscription Economy R/A SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/ross-stores-inc-nasdaq-rost-120021122.html","article_id":"2493724661","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jAAPqRQp7sV6MKNn11PgPA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/5e99d13d88d9e9a58e4b4d374d5369fd"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493724661","pubTimestamp":1734868821,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"It is hard to get excited after looking at Ross Stores'  recent performance, when its stock has declined 2.9% over the past week. However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to Ross Stores'  ROE today.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.Return on Equity = Net Profit  ÷ Shareholders' Equity. So, based on the above formula, the ROE for Ross Stores is:. Ross Stores has a healthy combination of a moderate three-year median payout ratio of 26%  and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","NDAQ":"纳斯达克OMX交易所","BK4585":"ETF&股票定投概念","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","SQQQ":"纳指三倍做空ETF","TSYW.SI":"TESLA 3xLongSG261006","QID":"纳指两倍做空ETF","USAW.SI":"AMZN 3xLongSG261006","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","BK4588":"碎股","BK4094":"服装零售","ROST":"罗斯百货有限公司","PSQ":"纳指反向ETF","USJW.SI":"ALPHAB 3xLongSG261006","QLD":"纳指两倍做多ETF","NVIW.SI":"NVDA 3xLongSG261006","BK4112":"金融交易所和数据",".IXIC":"NASDAQ Composite","TQQQ":"纳指三倍做多ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD"},"translate_title":"罗斯商店公司（纳斯达克：ROST）的股票最近表现疲软，但财务状况看起来很强劲：潜在股东应该迈出这一步吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ROST":1,"NDAQ":1,".IXIC":1,"USJW.SI":0.6,"USAW.SI":0.6,"TSYW.SI":0.6,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NVIW.SI":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"It is hard to get excited after looking at Ross Stores' (NASDAQ:ROST) recent performance, when its stock has declined 2.9% over the past week. However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to Ross Stores'  ROE today. \n Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. \n View our latest analysis for Ross Stores \n How To Calculate Return On Equity? \n The formula for return on equity is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Ross Stores is:\n40% = US$2.1b ÷ US$5.3b (Based on the trailing twelve months to November 2024).\n The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.40 in profit. \n What Has ROE Got To Do With Earnings Growth? \n We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. \n Ross Stores' Earnings Growth And 40% ROE \n To begin with, Ross Stores has a pretty high ROE which is interesting. Additionally, the company's ROE is higher compared to the industry average of 19% which is quite remarkable. This probably laid the groundwork for Ross Stores' moderate 17% net income growth seen over the past five years. \n We then performed a comparison between Ross Stores' net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 17% in the same 5-year period. \n\n\n\n  NasdaqGS:ROST Past Earnings Growth December 22nd 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is ROST fairly valued? This infographic on the company's intrinsic value  has everything you need to know. \n Is Ross Stores Using Its Retained Earnings Effectively? \n Ross Stores has a healthy combination of a moderate three-year median payout ratio of 26% (or a retention ratio of 74%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. \n Besides, Ross Stores has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 24%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 38%. \n Conclusion \n In total, we are pretty happy with Ross Stores' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","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":"4.29.4","shortVersion":"4.29.4","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/2493724661"}