{"id":54143,"date":"2024-08-22T10:08:21","date_gmt":"2024-08-22T08:08:21","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=analyse&#038;p=54143"},"modified":"2024-08-22T10:30:44","modified_gmt":"2024-08-22T08:30:44","slug":"ross-stores-rost-can-add-to-the-stock-price-after-the-positive-figures-from-tjx-companies","status":"publish","type":"analyse","link":"https:\/\/www.captrader.com\/en\/analyse\/ross-stores-rost-kann-die-aktie-nach-den-positiven-zahlen-von-tjx-companies-nachlegen\/","title":{"rendered":"Ross Stores (Rost) Can the share gain ground after TJX Companies' positive figures?"},"content":{"rendered":"<p>Ross Stores, Inc. is a leading US retailer specializing in the sale of fashion, home furnishings and accessories at discounted prices. The company operates the brands \"Ross Dress for Less\" and \"dd's DISCOUNTS\", which together offer a wide range of branded products, often at discounts of 20 % to 60 % compared to traditional department stores. Headquartered in Dublin, California, Ross Stores operates over 2100 stores in 43 US states.<\/p>\n<h2><strong>business model<\/strong><\/h2>\n<p>Ross Stores pursues an off-price retail model that aims to offer high-quality branded products at greatly reduced prices. The company acquires its inventory from a variety of sources, including overstocks, liquidations and seasonal remnants from manufacturers and retailers. This business model enables Ross Stores to offer products at prices significantly below those of traditional retailers, which particularly appeals to price-conscious consumers.<\/p>\n<p>The flexibility in the purchasing process allows Ross Stores to react quickly to market changes and bring current trends into the stores. The company also pursues a cautious marketing strategy based on word of mouth and customer satisfaction, which leads to lower operating costs.<\/p>\n<h2><strong>Reactions to the quarterly figures in the past<\/strong><\/h2>\n<p>\u00a0Of the last 40 quarterly reports, 37 exceeded expectations, while only 3 reports fell short of expectations. After a missed quarterly report, the median share price fell by 6.39 % after one month. When the company beat expectations, the median share price rose by 2.38 %. All data is from Toeggle AI.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"652\" height=\"620\" class=\"wp-image-54144 aligncenter\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-display-1.png\" alt=\"An image containing text, screenshot, software, display, automatically generated description\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-display-1.png 652w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-display-1-300x285.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-display-1-13x12.png 13w\" sizes=\"auto, (max-width: 652px) 100vw, 652px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-54145 aligncenter\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-multimed-5.png\" alt=\"An image containing text, screenshot, software, multimedia software, automatically generated description\" width=\"646\" height=\"601\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-multimed-5.png 670w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-multimed-5-300x279.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-text-screenshot-software-multimed-5-13x12.png 13w\" sizes=\"auto, (max-width: 646px) 100vw, 646px\" \/><\/p>\n<h2><strong>Fundamental data analysis <\/strong><\/h2>\n<p>Aus vergangenen Finanz- und Gesch\u00e4ftsdaten lassen sich in der Fundamentalanalyse R\u00fcckschl\u00fcsse auf die aktuelle Lage eines Unternehmens ziehen. Hierbei sind Faktoren wie Verschuldung, Gewinn und Cashflow von gro\u00dfer Bedeutung. Um diese Kennzahlen angemessen zu interpretieren, ist es entscheidend, sie in Relation zu einem Vergleichsuniversum zu setzen. Auf diese Weise l\u00e4sst sich beurteilen, ob das Unternehmen im Vergleich zu anderen in seiner Branche eine eher starke oder schwache Position einnimmt.<\/p>\n<h2><strong>Fundamental analysis: The stability of Ross Stores<\/strong><\/h2>\n<p>Ross Stores (Rost) has a solid financial performance, characterized by continuous sales and profit growth. Over the last five years, the company has increased sales by an average of 6.34 % and profits by 2.49 %. These key figures underline the efficiency of the off-price business model and the company's ability to remain profitable even in a highly competitive environment.<\/p>\n<p>The company had an acceptable debt ratio of around 66 % in the past financial year and has a strong liquidity position with cash and cash equivalents of USD 4.87 billion. Current liabilities are only USD 4.18 billion. First-grade liquidity is therefore 116 %, which indicates solid financial stability.<\/p>\n<p>Ross Stores' return on equity is an impressive 40.93 %, which indicates an extremely efficient use of equity. The return on assets is around 13.53 %, which is also a strong signal of effective utilization of the company's resources. These high profitability ratios are not uncommon in the industry; for comparison, TJX Companies has a return on equity of 65.48 % and a return on assets of 15.40 %.<\/p>\n<p>Ross Stores has been paying a dividend for many years and has continuously increased it in recent years. The current dividend yield is around 0.95 %. The dividend has been increased continuously since 2009, with the exception of 2021, when the dividend was cut sharply for one year due to the pandemic.<\/p>\n<p>Due to its solid growth and outstanding profitability, Ross Stores' shares are not cheaply valued on the stock market. The current price\/earnings ratio (P\/E) is 25, and the price\/sales ratio (P\/S ratio) is 2.4. In comparison, TJX Companies has a P\/E ratio of just over 27 and a P\/S ratio of 2.3. All data comes from Morningstar and Yahoo Finance.<\/p>\n<h3><strong>Market environment and competition<\/strong><\/h3>\n<p>The retail market, particularly in the off-price segment, is highly competitive. Ross Stores is in direct competition with other off-price providers such as TJX Companies and Burlington Stores. These competitors pursue similar business models and also benefit from the high demand for inexpensive fashion and household items.<\/p>\n<p>Another risk is the dependence on consumer demand, which is heavily dependent on the general economic situation and consumer confidence. In difficult economic times, consumers may further reduce their spending, which could impact Ross Stores' sales. On the other hand, the off-price model also offers opportunities in times of economic uncertainty, as consumers are increasingly looking for low-cost alternatives.<\/p>\n<h3><strong>Growth strategy<\/strong><\/h3>\n<p>Ross Stores is pursuing a clear growth strategy that focuses on expanding its store network and optimizing its existing locations. In 2023, the company opened 92 new stores and plans to maintain this pace of growth in the coming years. In the long term, Ross Stores sees the potential for a total of 2,400 stores in the USA, which represents a significant increase on the current number.<\/p>\n<p>In addition, Ross Stores is investing in optimizing its supply chain and in technology to achieve efficiency gains and strengthen customer loyalty. Although online retail has played a minor role for the company to date, an increased e-commerce presence could represent an additional growth opportunity in the future. So far, however, the company has no plans to expand its business internationally, unlike TJX Companies, which has successfully expanded with the T.K. Maxx brand.<\/p>\n<h2><strong>Chart analysis: Will the share reach new highs?<\/strong><\/h2>\n<p>Since its low in 2022, the Ross Stores share has been in a stable upward trend. Recently, it successfully broke above the 50-day line, which is considered a positive technical signal. Yesterday's positive quarterly figures from TJX Companies also pushed Ross Stores' share price upwards and took the stock to a new high. This evening, Ross Stores will publish its own quarterly figures. If these figures are also positive, this could further strengthen the upward trend and possibly drive the share to new highs. The chart and the chart indicators were used by Stock3.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1507\" height=\"780\" class=\"wp-image-54146 aligncenter\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-screenshot-diagramm-reihe-text-en.png\" alt=\"An image containing screenshot, diagram, series, text, automatically generated description\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-screenshot-diagramm-reihe-text-en.png 1507w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-screenshot-diagramm-reihe-text-en-300x155.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-screenshot-diagramm-reihe-text-en-1024x530.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-screenshot-diagramm-reihe-text-en-768x398.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/08\/ein-bild-das-screenshot-diagramm-reihe-text-en-18x9.png 18w\" sizes=\"auto, (max-width: 1507px) 100vw, 1507px\" \/><\/p>\n<h2><strong>Conclusion:<\/strong><\/h2>\n<p>Ross Stores has proven that it can remain profitable even in a challenging market environment, thanks to its robust off-price business model and efficient use of capital and resources. The positive quarterly results of competitor TJX Companies, which have already driven Ross Stores' share price higher, suggest that Ross Stores could also benefit from the current market conditions. Although the stock is not cheaply valued, the company's stable growth and high profitability justify the current valuation. The solid dividend history and the potential for further store growth also support a positive assessment. While there are risks from tough competition and dependence on consumer demand, Ross Stores remains well positioned for long-term success. Given these factors and the recent positive signals, the stock remains an attractive option for investors looking for stable and growing companies in the retail sector. Therefore, I rate Ross Stores a \"BUY\".<\/p>","protected":false},"excerpt":{"rendered":"<p>Ross Stores, Inc. ist ein f\u00fchrendes US-amerikanisches Einzelhandelsunternehmen, das sich auf den Verkauf von Mode, Heimtextilien und Accessoires zu erm\u00e4\u00dfigten Preisen spezialisiert hat. Das Unternehmen betreibt die Marken \u201cRoss Dress for Less\u201d und \u201cdd\u2019s DISCOUNTS\u201d, die zusammen ein breites Sortiment an Markenprodukten anbieten, oft mit Rabatten von 20 % bis 60 % im Vergleich zu [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":0,"template":"","analysen-kategorie":[876,1252],"class_list":["post-54143","analyse","type-analyse","status-publish","hentry","analysen-kategorie-aktien","analysen-kategorie-ross-stones"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse\/54143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/analyse"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/40"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=54143"}],"wp:term":[{"taxonomy":"analysen-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analysen-kategorie?post=54143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}