Its Stock Has Paid Off Big Time For Ross Stores Inc.

Ross Stores Inc. (NASDAQ: ROST) stock jumped 5.95% on Friday to $84.58 against a previous-day closing price of $79.83. With 2.99 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.08 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $85.09 whereas the lowest price it dropped to was $80.69. The 52-week range on ROST shows that it touched its highest point at $127.34 and its lowest point at $69.24 during that stretch. It currently has a 1-year price target of $96.35. With its current market cap of 29.24 billion, ROST has annualized dividend of $1.24 while the current yield stands at 1.47%. Beta for the stock currently stands at 1.03.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ROST was up-trending over the past week, with a rise of 5.37%, but this was up by 14.58% over a month. Three-month performance dropped to -15.80% while six-month performance fell -14.17%. The stock lost -30.67% in the past year, while it has lost -25.99% so far this year. A look at the trailing 12-month EPS for ROST yields 4.50 with Next year EPS estimates of 5.14. For the next quarter, that number is 1.03. This implies an EPS growth rate of 3.50% for this year and 16.97% for next year. EPS is expected to grow by 34.73% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.50%.

Float and Shares Shorts:

At present, 347.05 million ROST shares are outstanding with a float of 346.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.71 million, which was 2.49% higher than short shares on Jun 14, 2022. In addition to Ms. Barbara Rentler as the firm’s Vice Chairman & CEO, Mr. Michael K. Kobayashi serves as its Pres & Chief Capability Officer.

Institutional Ownership:

Through their ownership of 90.51% of ROST’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.05% of ROST, in contrast to 4.22% held by mutual funds. Shares owned by individuals account for 32.29%. As the largest shareholder in ROST with 13.91% of the stake, T. Rowe Price Associates, Inc. holds 48,663,190 shares worth 48,663,190. A second-largest stockholder of ROST, The Vanguard Group, Inc., holds 26,073,919 shares, controlling over 7.45% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ROST, holding 16,372,980 shares or 4.68% stake. With a 2.96% stake in ROST, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 10,367,041 shares are owned by the mutual fund manager. The T Rowe Price Growth Stock Fund, which owns about 2.66% of ROST stock, is the second-largest Mutual Fund holder. It holds 9,311,293 shares valued at 653.93 million. Vanguard PRIMECAP Fund holds 2.24% of the stake in ROST, owning 7,833,900 shares worth 550.17 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ROST since 23 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ROST analysts setting a high price target of $129.00 and a low target of $70.00, the average target price over the next 12 months is $93.24. Based on these targets, ROST could surge 52.52% to reach the target high and fall by -17.24% to reach the target low. Reaching the average price target will result in a growth of 10.24% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ROST will report FY 2023 earnings on 03/01/2023. Analysts have provided yearly estimates in a range of $4.75 being high and $3.90 being low. For ROST, this leads to a yearly average estimate of $4.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ross Stores Inc. surprised analysts by -$0.02 when it reported $0.97 EPS against a consensus estimate of $0.99. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $1.09 and the low estimate is $0.91. The average estimate for the next quarter is thus $1.02.

Dividends & Yield:

In terms of dividends, ROST has a current ratio of $1.24, which is $1.24 over the trailing 12-months, while a dividend of $0.81 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and ROST currently yields $1.41. In the past year, ROST’s dividend yield has been $1.41, but when looking at the stock over the past five years, its yield has been $0.86. Accordingly, ROST has a current buyback yield of $3.17. This was $3.17 for the TTM, and it was $2.5 for the past five years.

Summary of Insider Activity:

Insiders traded ROST stock several times over the past three months with 13 Buys and 4 Sells. In these transactions, 37,230 shares were bought while 3,900 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 327,158 while 107,676 shares were sold.

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