Ready to Jump After Recent Trade: Ross Stores Inc. (ROST)

Ross Stores Inc. (NASDAQ: ROST) stock jumped 0.87% on Thursday to $102.34 against a previous-day closing price of $101.46. With 2.95 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.34 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $104.14 whereas the lowest price it dropped to was $101.65. The 52-week range on ROST shows that it touched its highest point at $122.44 and its lowest point at $69.24 during that stretch. It currently has a 1-year price target of $119.42. With its current market cap of 35.21 billion, ROST has annualized dividend of $1.34 while the current yield stands at 1.31%. Beta for the stock currently stands at 0.98.

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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 down-trending over the past week, with a drop of -2.88%, but this was down by -2.25% over a month. Three-month performance dropped to -8.18% while six-month performance fell -11.22%. The stock gained 31.86% in the past year, while it has lost -11.83% so far this year. A look at the trailing 12-month EPS for ROST yields 4.38 with Next year EPS estimates of 5.42. For the next quarter, that number is 1.13. This implies an EPS growth rate of -10.10% for this year and 10.01% for next year. EPS is expected to grow by 10.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.60%.

Float and Shares Shorts:

At present, 339.75 million ROST shares are outstanding with a float of 338.20 million shares on hand for trading. On May 14, 2023, short shares totaled 5.79 million, which was 1.69% higher than short shares on Apr 13, 2023. 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 92.52% of ROST’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.56% of ROST, in contrast to 4.31% held by mutual funds. Shares owned by individuals account for 32.24%. As the largest shareholder in ROST with 12.02% of the stake, T. Rowe Price Associates, Inc. holds 41,115,463 shares worth 41,115,463. A second-largest stockholder of ROST, The Vanguard Group, Inc., holds 26,651,942 shares, controlling over 7.79% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ROST, holding 16,325,389 shares or 4.77% stake. With a 3.13% stake in ROST, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 10,696,809 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.36% of ROST stock, is the second-largest Mutual Fund holder. It holds 8,082,837 shares valued at 862.68 million. Vanguard PRIMECAP Fund holds 2.29% of the stake in ROST, owning 7,819,900 shares worth 834.62 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 28, 2023, ROST reported revenue of $4.33B and operating income of $467.16M. The EBITDA in the recently reported quarter was $559.27M and diluted EPS was $0.97.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ROST since 0 analysts follow the stock currently. 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 $135.00 and a low target of $78.00, the average target price over the next 12 months is $120.26. Based on these targets, ROST could surge 31.91% to reach the target high and fall by -23.78% to reach the target low. Reaching the average price target will result in a growth of 17.51% 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.

Dividends & Yield:

In terms of dividends, ROST has a current ratio of $1.34, which is $1.34 over the trailing 12-months, while a dividend of $0.91 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 $1.24. In the past year, ROST’s dividend yield has been $1.24, but when looking at the stock over the past five years, its yield has been $0.92. Accordingly, ROST has a current buyback yield of $2.84. This was $2.84 for the TTM, and it was $2.48 for the past five years.

Summary of Insider Activity:

Insiders traded ROST stock several times over the past three months with 4 Buys and 9 Sells. In these transactions, 70,618 shares were bought while 119,796 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 96,069 while 134,767 shares were sold.

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