This Discount Retailer is Poised for a Rally
The early indications from holiday retail sales numbers are showing that retailers had a very merry Christmas, but the results did vary from one segment to another. According to the Mastercard SpendingPulse report, retail sales were up 5.1% from December 1 through 24 compared to the same period one year ago.
There were interesting pockets where sales increased and decreased. Home improvement sales were up 9% while electronics were down 0.7%. Another area that saw a big increase was apparel with a gain of 7.9%.
Enter Ross Stores (Nasdaq: ROST) -- a company I have been watching for quite some time. The stock pulled back in the last few months, but it found support just above its 104-week moving average.
The stock was tremendously oversold based on the weekly stochastic readings. The readings were the lowest they had been since July ’17 before turning higher in the last two weeks. When the stochastic readings made a bullish crossover in ’17, the stock rallied over 50% in the next six months.
The company has seen its earnings grow at a solid pace in recent years. The EPS growth rate has averaged 18% annually over the last three years and analysts expect earnings growth of 25% in the current year.
I don’t know that we will see a 50% jump in the stock over the next six months, but I certainly expect the stock to rally.
Aroon Indicator for ROST shows an upward move is likely
ROST's Aroon Indicator triggered a bullish signal on November 14, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 264 similar instances where the Aroon Indicator showed a similar pattern. In of the 264 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 20, 2025. You may want to consider a long position or call options on ROST as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ROST just turned positive on November 21, 2025. Looking at past instances where ROST's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ROST advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 .
ROST broke above its upper Bollinger Band on November 21, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. ROST’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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: P/B Ratio (9.625) is normal, around the industry mean (7.614). P/E Ratio (27.208) is within average values for comparable stocks, (32.552). Projected Growth (PEG Ratio) (3.063) is also within normal values, averaging (2.373). ROST has a moderately low Dividend Yield (0.009) as compared to the industry average of (0.031). P/S Ratio (2.577) is also within normal values, averaging (3.653).
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General Information
an operator of discount clothing chains & sells closeout merchandise
Industry ApparelFootwearRetail
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