Off-price retailer of apparel and home accessories, Ross Stores Inc. (ROST Quick QuoteROST - Free Report) remains on track with its store expansion program. In line with its expansion strategy, this Zacks Rank #3 (Hold) company opened 31 new stores in June and July, including 24 Ross Dress For Less and 7 dd's DISCOUNTS stores in 15 different states.

These stores are the second set opened under the company’s 2016 plan to add about 90 new stores (70 Ross Dress For Less and 20 dd's DISCOUNTS), thus marking the completion of its targeted store expansion for the second quarter. The company had inaugurated 28 new stores, including 22 Ross Dress For Less and 6 dd's DISCOUNTS stores in the first quarter.

The new store openings are in line with Ross Stores’ strategy of expanding its presence in both existing as well as newer markets that commenced in 2011.

The latest store openings include 10 stores in the newer Midwest region, including 4 outlets in Wisconsin. Including these new stores, the company operates 1,317 Ross Dress For Less stores in 34 states, the District of Columbia and Guam, and 185 dd's DISCOUNTS locations in 15 states.

We remain confident of the company’s growth potential and its ability to successfully attain the target of expanding its store base to 2,500 − comprising 2,000 Ross and 500 dd’s DISCOUNTS stores − over the longer term. Additionally, we believe the company is underpenetrated in the 34 states it serves and holds promise to substantially grow its store base in these markets.

Stocks that Warrant a Look

Some better-ranked stocks in the same industry include Big Lots Inc. (BIG Quick QuoteBIG - Free Report) , Burlington Stores, Inc. (BURL Quick QuoteBURL - Free Report) and Dollar General Corporation (DG Quick QuoteDG - Free Report) , all carrying a Zacks Rank #2 (Buy).

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