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.
Ross Stores Continues to Rally: What's Driving the Stock?
Read MoreHide Full Article
Discount store retailer, Ross Stores, Inc. (ROST - Free Report) continues to impress investors with its robust performance. Notably, this Zacks Rank #2 (Buy) stock has largely outperformed the Zacks categorized Retail – Discount & Variety industry’s growth of 8.2% on a year-to-date basis, with its shares having surged 27.1% in the same period. So let’s take a look at what’s driving Ross Stores’ stock.
Ross Stores has been gaining from its effective merchandising initiatives, store growth potential and impressive earnings trend.
The company remains focused on merchandise organization through investments in workforce, processes and technology to keep itself firmly placed on the growth trajectory. Moreover, the company constantly organizes its merchant group. This enables the company to steadily expand market coverage in the vendor community while enhancing relationships with a broad network of existing and new resources. We believe these initiatives are likely to strengthen Ross Stores’ buying operations, facilitating the purchase of on-trend merchandise at attractive prices.
Further, the company has a proven business model as the competitive bargains it offers continue to make its stores attractive destinations for customers in all economic scenarios. Moreover, the off-price model offers strong value proposition and micro-merchandising that drive better product allocation and margins. We believe this will help sustain the company’s top- and- bottom-line growth trends.
We also applaud Ross Store’s ability to run the business with leaner inventory levels and faster inventory turnover. The company remains focused on cutting down inventories at stores to the optimum level, while making the right assortments available, at the right store, at the right time. Additionally, the company’s commitment toward its store expansion program makes us confident of its growth potential.
Driven by its growth endeavors, the company has delivered positive earnings surprise in nine of the past 10 quarters. In fact, following its spectacular third-quarter fiscal 2016 results, the company raised its earnings forecast for fiscal 2016. Consequently, the Zacks Consensus Estimate has trended upwards, over the past 60 days – underscoring analysts’ confidence in the company’s ongoing performance.
Burlington has an average positive earnings surprise of 25.6% in the trailing four quarters. The stock, with a long-term growth rate of 19.9%, has seen positive estimate revisions in the last 30 days.
PriceSmart has long-term earnings per share (EPS) growth rate of 15%. Moreover, the company’s positive estimate revisions for the current fiscal over the past 60 days, bodes well.
Kohl's Corporation’s long-term EPS growth rate of 8.8% and solid positive estimate revisions for the current fiscal over the past 60 days help it to stand strong in the industry. Moreover, the company has delivered back-to-back positive earnings surprises in the last two quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ross Stores Continues to Rally: What's Driving the Stock?
Discount store retailer, Ross Stores, Inc. (ROST - Free Report) continues to impress investors with its robust performance. Notably, this Zacks Rank #2 (Buy) stock has largely outperformed the Zacks categorized Retail – Discount & Variety industry’s growth of 8.2% on a year-to-date basis, with its shares having surged 27.1% in the same period. So let’s take a look at what’s driving Ross Stores’ stock.
Ross Stores has been gaining from its effective merchandising initiatives, store growth potential and impressive earnings trend.
The company remains focused on merchandise organization through investments in workforce, processes and technology to keep itself firmly placed on the growth trajectory. Moreover, the company constantly organizes its merchant group. This enables the company to steadily expand market coverage in the vendor community while enhancing relationships with a broad network of existing and new resources. We believe these initiatives are likely to strengthen Ross Stores’ buying operations, facilitating the purchase of on-trend merchandise at attractive prices.
Further, the company has a proven business model as the competitive bargains it offers continue to make its stores attractive destinations for customers in all economic scenarios. Moreover, the off-price model offers strong value proposition and micro-merchandising that drive better product allocation and margins. We believe this will help sustain the company’s top- and- bottom-line growth trends.
We also applaud Ross Store’s ability to run the business with leaner inventory levels and faster inventory turnover. The company remains focused on cutting down inventories at stores to the optimum level, while making the right assortments available, at the right store, at the right time. Additionally, the company’s commitment toward its store expansion program makes us confident of its growth potential.
Driven by its growth endeavors, the company has delivered positive earnings surprise in nine of the past 10 quarters. In fact, following its spectacular third-quarter fiscal 2016 results, the company raised its earnings forecast for fiscal 2016. Consequently, the Zacks Consensus Estimate has trended upwards, over the past 60 days – underscoring analysts’ confidence in the company’s ongoing performance.
ROSS STORES Price and Consensus
ROSS STORES Price and Consensus | ROSS STORES Quote
All said, we believe that you must take a look at this California-based company, before it’s too late.
Other Stocks to Consider
Other well-ranked retail stocks worth considering include Burlington Stores, Inc. (BURL - Free Report) with a Zacks Rank #1 (Strong Buy), PriceSmart, Inc. (PSMT - Free Report) and Kohl's Corporation (KSS - Free Report) , each with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington has an average positive earnings surprise of 25.6% in the trailing four quarters. The stock, with a long-term growth rate of 19.9%, has seen positive estimate revisions in the last 30 days.
PriceSmart has long-term earnings per share (EPS) growth rate of 15%. Moreover, the company’s positive estimate revisions for the current fiscal over the past 60 days, bodes well.
Kohl's Corporation’s long-term EPS growth rate of 8.8% and solid positive estimate revisions for the current fiscal over the past 60 days help it to stand strong in the industry. Moreover, the company has delivered back-to-back positive earnings surprises in the last two quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>