Ross Stores Inc. reported second-quarter earnings that surpassed Wall Street estimates.
The department store chain reported earnings of $1.14 a share, higher than analyst’ estimate of $1.11 a share. It also marked an increase from the year-ago period’s $1.04 a share.
Sales came in at $3.98 billion, beating analysts' estimate of $3.96 billion. It was higher than $3.74 billion of the prior year. Its comparable-store sales grew +3% compared with the same quarter last year.
According to Ross Stores, there would be a slight impact on its third and fourth quarters from the 10% tariffs on goods imported from China. For the third quarter, Ross Stores forecasts per-share earnings of 92 to 96 cents. For the fourth quarter, the company expects per-share earnings to be between $1.20 and $1.25.
The company issued full-year earnings guidance of $4.41 to $4.50, compared with its previous outlook of $4.38 to $4.52.
ROST moved below its 50-day moving average on May 23, 2023 date and that indicates a change from an upward trend to a downward trend. In of 49 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where ROST's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ROST as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ROST turned negative on May 23, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROST declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ROST entered a downward trend on May 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ROST advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
ROST may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: ROST's P/B Ratio (8.203) is slightly higher than the industry average of (3.471). P/E Ratio (22.989) is within average values for comparable stocks, (111.843). Projected Growth (PEG Ratio) (1.646) is also within normal values, averaging (4.392). Dividend Yield (0.012) settles around the average of (0.041) among similar stocks. P/S Ratio (1.880) is also within normal values, averaging (1.690).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ROST’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows