(ROST) Ross Stores - Ratings and Ratios

Ross Stores, Inc. operates a chain of off-price retail stores under the Ross Dress for Less and dds DISCOUNTS brands, offering a wide range of apparel, accessories, footwear, and home fashion products. The company targets middle-income households and those with lower to moderate incomes, providing discounted prices on brand-name merchandise. Ross Stores, Inc. was founded in 1957 and is headquartered in Dublin, California. Its business model relies on a no-frills shopping experience, with a focus on opportunistic buying and rapid inventory turnover to deliver value to customers.

The company has established itself as a leader in the off-price retail sector, with a strong presence across the United States. Its ability to source excess inventory from manufacturers and retailers enables it to offer deep discounts on current and prior-season products. Ross Stores, Inc. has demonstrated consistent store expansion and operational efficiency, supported by its disciplined approach to inventory management and cost control. The companys financial performance is underpinned by its high return on equity (RoE) and strong profit margins, reflecting its effective business strategy.

3-Month Forecast: Based on , ROST is currently trading above its 20-day and 50-day moving averages, indicating short-term bullish momentum. However, the stock is below its 200-day moving average, suggesting caution in the long-term trend. The average true range (ATR) of 4.26 signals moderate volatility. From a perspective, the companys high P/E ratio of 20.62, compared to its forward P/E of 19.53, indicates investor confidence in future earnings growth. The strong return on equity (RoE) of 36.20% underscores the companys profitability and efficient use of shareholder capital. Over the next three months, ROST is likely to face resistance at its 200-day SMA of 143.62 and support at its 50-day SMA of 133.82. The stocks valuation multiples, particularly its P/B ratio of 7.78, may act as a headwind if market sentiment shifts.