Ross Stores (NASDAQ:ROST) Downgraded by Zacks Investment Research to “Strong Sell”

Ross Stores (NASDAQ:ROSTGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Tuesday, Zacks.com reports. They presently have a $67.00 price target on the apparel retailer’s stock. Zacks Investment Research‘s price objective points to a potential downside of 12.43% from the company’s previous close.

According to Zacks, “Ross Stores has declined in the past three months, courtesy of the dismal performance in first-quarter fiscal 2022. The company’s top and bottom line declined year over year and missed estimates in the fiscal first quarter. Results were mainly impacted by the tough year-over-year comparisons, owing to last year’s government stimulus and pent-up consumer demand due to the easing of COVID-led restrictions. The inflationary pressures on consumers resulting from the Russia-Ukraine war also weighed on performance. Higher freight and wage-related pressures continued to hurt margins and the bottom line. Given the fiscal first-quarter performance and the uncertain macro-environment, Ross Stores provided a conservative view for the rest of fiscal 2022.  However, Ross Stores expects returning to normal store opening targets in fiscal 2022.”

ROST has been the topic of several other research reports. JPMorgan Chase & Co. cut their price target on Ross Stores from $125.00 to $119.00 in a report on Monday, May 16th. StockNews.com assumed coverage on shares of Ross Stores in a report on Thursday, March 31st. They set a “hold” rating for the company. Cowen lowered their price target on shares of Ross Stores from $109.00 to $103.00 and set a “market perform” rating for the company in a research report on Tuesday, February 22nd. Citigroup decreased their target price on shares of Ross Stores from $125.00 to $100.00 and set a “buy” rating for the company in a research report on Friday. Finally, TheStreet cut Ross Stores from a “b-” rating to a “c+” rating in a report on Thursday, May 19th. One research analyst has rated the stock with a sell rating, six have given a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $100.50.

Shares of NASDAQ:ROST traded down $2.24 on Tuesday, reaching $76.51. 141,470 shares of the company’s stock were exchanged, compared to its average volume of 3,458,317. The business’s 50-day moving average is $95.75 and its two-hundred day moving average is $100.64. The company has a quick ratio of 1.24, a current ratio of 1.77 and a debt-to-equity ratio of 0.60. Ross Stores has a fifty-two week low of $69.75 and a fifty-two week high of $127.58. The firm has a market capitalization of $26.89 billion, a price-to-earnings ratio of 16.97, a PEG ratio of 1.84 and a beta of 0.92.

Ross Stores (NASDAQ:ROSTGet Rating) last announced its quarterly earnings data on Thursday, May 19th. The apparel retailer reported $0.97 earnings per share for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.03). Ross Stores had a net margin of 8.46% and a return on equity of 39.79%. The business had revenue of $4.33 billion for the quarter, compared to the consensus estimate of $4.54 billion. During the same period in the prior year, the company earned $1.34 EPS. Ross Stores’s quarterly revenue was down 4.1% on a year-over-year basis. Analysts predict that Ross Stores will post 5.04 earnings per share for the current fiscal year.

Ross Stores announced that its board has approved a share repurchase plan on Tuesday, March 1st that permits the company to buyback $1.90 billion in shares. This buyback authorization permits the apparel retailer to purchase up to 6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Several large investors have recently modified their holdings of the stock. Equitec Proprietary Markets LLC purchased a new position in Ross Stores during the 4th quarter worth approximately $26,000. Zullo Investment Group Inc. purchased a new stake in Ross Stores in the 4th quarter worth about $30,000. Riverview Trust Co acquired a new stake in Ross Stores during the 1st quarter worth about $31,000. Kozak & Associates Inc. purchased a new position in Ross Stores during the 3rd quarter valued at about $45,000. Finally, Migdal Insurance & Financial Holdings Ltd. acquired a new position in shares of Ross Stores in the 3rd quarter valued at about $46,000. Institutional investors and hedge funds own 87.02% of the company’s stock.

Ross Stores Company Profile (Get Rating)

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. 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 primarily to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income.

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