We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Ross Stores (ROST) Deliver Another Earnings Beat in Q2?
Read MoreHide Full Article
Ross Stores Inc. (ROST - Free Report) is slated to release second-quarter fiscal 2016 results on Aug 18. Last quarter, the company posted earnings in line with the Zacks Consensus Estimate.
In fact, the company has outperformed the Zacks Consensus Estimate by an average of 2.7% over the trailing four quarters. Let’s see how things are shaping up for this announcement.
Ross Stores, which has been gaining from the favorable response of value-focused customers to its extensive collection of brand bargains and efficient cost controls, remains confident of its future performance. Ross Stores’ strategy to keep itself on the growth trajectory involves a continued focus on merchandising organization through investments in workforce, processes and technology. With a solid financial status, ongoing merchandise initiatives and consistent focus on store expansion, Ross Stores remains confident of performing well this year.
For the fiscal second quarter, the company expects earnings in the range of 64–67 cents per share compared with 63 cents earned in the prior-year quarter. Total sales are expected to grow 4–5%, with comps expected to be up 1–2%.
However, Ross Stores expects to face challenges related to strong comparisons, amid macroeconomic uncertainty and a volatile retail landscape, which may slightly impact results.
Earnings Whispers
Our proven model does not conclusively show that Ross is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Ross Stores is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 67 cents.
Zacks Rank: Ross Stores’ Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Best Buy Co. Inc. (BBY - Free Report) , scheduled to report earnings on Aug 23, has an Earnings ESP of +7.14% and a Zacks Rank #2 (Buy).
GameStop Corp. (GME - Free Report) , scheduled to report earnings on Aug 25, has an Earnings ESP of +7.14% and a Zacks Rank #2.
DSW Inc. , scheduled to report earnings on Aug 30, has an Earnings ESP of +6.90% and a Zacks Rank #2.
Want 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 >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Will Ross Stores (ROST) Deliver Another Earnings Beat in Q2?
Ross Stores Inc. (ROST - Free Report) is slated to release second-quarter fiscal 2016 results on Aug 18. Last quarter, the company posted earnings in line with the Zacks Consensus Estimate.
In fact, the company has outperformed the Zacks Consensus Estimate by an average of 2.7% over the trailing four quarters. Let’s see how things are shaping up for this announcement.
ROSS STORES Price and EPS Surprise
ROSS STORES Price and EPS Surprise | ROSS STORES Quote
Factors Influencing this Quarter
Ross Stores, which has been gaining from the favorable response of value-focused customers to its extensive collection of brand bargains and efficient cost controls, remains confident of its future performance. Ross Stores’ strategy to keep itself on the growth trajectory involves a continued focus on merchandising organization through investments in workforce, processes and technology. With a solid financial status, ongoing merchandise initiatives and consistent focus on store expansion, Ross Stores remains confident of performing well this year.
For the fiscal second quarter, the company expects earnings in the range of 64–67 cents per share compared with 63 cents earned in the prior-year quarter. Total sales are expected to grow 4–5%, with comps expected to be up 1–2%.
However, Ross Stores expects to face challenges related to strong comparisons, amid macroeconomic uncertainty and a volatile retail landscape, which may slightly impact results.
Earnings Whispers
Our proven model does not conclusively show that Ross is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Ross Stores is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 67 cents.
Zacks Rank: Ross Stores’ Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Best Buy Co. Inc. (BBY - Free Report) , scheduled to report earnings on Aug 23, has an Earnings ESP of +7.14% and a Zacks Rank #2 (Buy).
GameStop Corp. (GME - Free Report) , scheduled to report earnings on Aug 25, has an Earnings ESP of +7.14% and a Zacks Rank #2.
DSW Inc. , scheduled to report earnings on Aug 30, has an Earnings ESP of +6.90% and a Zacks Rank #2.
Want 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 >>