#4 - Ross Stores (NASDAQ:ROST)
Another major player in the off-price retail space is Ross Stores (NASDAQ:ROST). The company had earnings that lagged behind the industry leader TJX. However, like most retailers that was an expected outcome. The company also declined to post forward guidance.
One of the negatives in the company’s report was a negative $1.1 billion in cash flow from operations. This was largely due to the fact that the company continued to pay for merchandise even as stores were closed.
Ross Stores began opening about two weeks after TJX stores. As of this writing only about 700 stores have re-opened. ROST has a model that is similar, but distinct, from a store like TJ Maxx. Both stores rely on heavily discounted merchandise. However, Ross Stores offer a less seasonal variety that gives their inventory a bit more shelf life. If TJX stores are any barometer, the company should expect to have encouraging store traffic that may translate into sales.
About Ross Stores
Ross Stores, Inc, together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income.
Read More - Current Price
- $146.09
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $171.69 (17.5% Upside)
