Ross Stores, Inc. (ROST) Lifted to “Buy” at Zacks Investment Research
Ross Stores, Inc. (NASDAQ:ROST) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The brokerage presently has a $68.00 price target on the apparel retailer’s stock. Zacks Investment Research‘s price target suggests a potential upside of 11.62% from the company’s previous close.
According to Zacks, “Ross Stores has a positive record of earnings surprises in 12 of the trailing 13 quarters. In second-quarter fiscal 2017, both the top and bottom lines topped estimates and improved year over year. Results gained from solid top-line growth that was driven by broad-based growth across all merchandise categories and regions. Further, better-than-expected sales and operating profits at dd's DISCOUNTS aided results. Concluding first-half fiscal 2017 on a strong note, the company provided guidance for the second half and accordingly raised earnings view for fiscal 2017. Moreover, its solid financial status, ongoing merchandise initiatives and consistent focus on store expansion bode well. However, the company which has lagged the industry year to date, anticipates witnessing the most challenging year-ago comparisons in second-half fiscal 2017. It also expects facing a volatile retail backdrop.”
Other analysts have also recently issued reports about the company. Royal Bank Of Canada reiterated a “hold” rating and issued a $62.00 price objective on shares of Ross Stores in a research note on Monday. Wolfe Research reduced their price objective on Ross Stores from $76.00 to $73.00 and set an “outperform” rating on the stock in a research note on Friday, August 18th. BMO Capital Markets set a $65.00 price objective on Ross Stores and gave the company a “hold” rating in a research note on Tuesday, August 8th. Bank of America Corporation reiterated a “buy” rating and issued a $80.00 price objective on shares of Ross Stores in a research note on Sunday, August 20th. Finally, Cowen and Company reiterated an “outperform” rating and issued a $55.00 price objective on shares of Ross Stores in a research note on Friday, August 18th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and fourteen have issued a buy rating to the company’s stock. Ross Stores has an average rating of “Buy” and an average price target of $69.68.
Ross Stores (NASDAQ:ROST) last announced its quarterly earnings data on Thursday, August 17th. The apparel retailer reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.05. The business had revenue of $3.43 billion for the quarter, compared to analysts’ expectations of $3.37 billion. Ross Stores had a return on equity of 42.95% and a net margin of 8.87%. The company’s revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period last year, the firm earned $0.71 earnings per share.
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In other Ross Stores news, CEO Barbara Rentler sold 15,492 shares of the firm’s stock in a transaction dated Tuesday, September 12th. The stock was sold at an average price of $61.00, for a total transaction of $945,012.00. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.30% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in shares of Ross Stores by 1.9% during the second quarter. Vanguard Group Inc. now owns 36,146,781 shares of the apparel retailer’s stock worth $2,086,753,000 after buying an additional 686,186 shares during the last quarter. BlackRock Inc. grew its holdings in shares of Ross Stores by 1,908.5% during the first quarter. BlackRock Inc. now owns 26,454,293 shares of the apparel retailer’s stock worth $1,742,545,000 after buying an additional 25,137,186 shares during the last quarter. State Street Corp grew its holdings in shares of Ross Stores by 1.0% during the first quarter. State Street Corp now owns 17,886,365 shares of the apparel retailer’s stock worth $1,178,183,000 after buying an additional 173,336 shares during the last quarter. Massachusetts Financial Services Co. MA grew its holdings in shares of Ross Stores by 1.6% during the first quarter. Massachusetts Financial Services Co. MA now owns 9,295,824 shares of the apparel retailer’s stock worth $612,317,000 after buying an additional 146,423 shares during the last quarter. Finally, Principal Financial Group Inc. grew its holdings in shares of Ross Stores by 5.3% during the second quarter. Principal Financial Group Inc. now owns 6,482,963 shares of the apparel retailer’s stock worth $374,261,000 after buying an additional 327,310 shares during the last quarter. 90.40% of the stock is currently owned by hedge funds and other institutional investors.
About Ross Stores
Ross Stores, Inc and its subsidiaries operate two brands of off-price retail apparel and home fashion stores-Ross Dress for Less (Ross) and dd’s DISCOUNTS. The Company is the off-price apparel and home fashion chain in the United States, with 1,340 locations in 36 states, the District of Columbia and Guam, as of January 28, 2017.
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