Latest news with #RossStores
Yahoo
10 hours ago
- Business
- Yahoo
What You Need to Know Ahead of Ross Stores' Earnings Release
With a market cap of $42.8 billion, Ross Stores, Inc. (ROST) operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. Headquartered in Dublin, California, the company offers apparel, accessories, footwear, and home fashions products. ROST is expected to report its Q2 earnings on Thursday, Aug. 28. Ahead of the event, analysts expect ROST to report a profit of $1.53 per share, down 3.8% from a profit of $1.59 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in each of the past four quarters, which is notable. More News from Barchart 2 Recession-Proof Dividend Stocks to Buy for the Second Half of 2025 UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. Auto Revenue Keeps Plunging at Tesla. Should You Buy the TSLA Stock Dip or Run Far Away? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For the current year, analysts expect ROST to report EPS of $6.23, down 1.4% from $6.32 in fiscal 2024. However, its EPS is likely to rise 9% year over year to $6.79 in FY2026. Over the past year, ROST shares surged 4%, underperforming the S&P 500 Index's ($SPX) 17.3% gains and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 22.9% returns over the same time frame. On Jul. 2, shares of Ross Stores climbed more than 1% after Jefferies Financial Group Inc. (JEF) upgraded the stock from a 'Hold' to a 'Buy' rating. The firm also raised its price target to $150, citing improved traffic trends, solid inventory management, and a favorable off-price retail environment as key catalysts for potential upside in the stock. The consensus opinion on ROST stock is highly upbeat, with an overall 'Strong Buy' rating. Out of the 19 analysts covering the stock, 15 recommend a 'Strong Buy' and four recommend a 'Hold.' Its mean price target of $154.53 indicates a robust 11.1% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why Boot Barn (BOOT) Stock Is Down Today
What Happened? Shares of clothing and footwear retailer Boot Barn (NYSE:BOOT) fell 3.3% in the morning session after an analyst at Jefferies downgraded the stock, citing concerns over the company's valuation. Jefferies analyst Corey Tarlowe lowered the rating on the western and workwear retailer to 'Hold' from a previous 'Buy' and also cut the price target to $175 from $187. The analyst noted that while the business continued to perform well, the stock's price had appreciated to levels that left little room for near-term upside. According to the firm, the risk-to-reward profile for the stock appeared more balanced at its current valuation, prompting the more cautious stance despite continued confidence in Boot Barn's fundamental business strength. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Boot Barn? Access our full analysis report here, it's free. What Is The Market Telling Us Boot Barn's shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock dropped 20.9% on the news that the company reported third-quarter earnings and provided EPS forecast for the next quarter, which missed Wall Street's estimates. The company also reported that CEO Jim Conroy had stepped down to become CEO of Ross Stores (NASDAQ:ROST). Chief Digital Officer John Hazen replaced him as Interim CEO. Overall, this was a softer quarter, and the management shake-up is spooking investors. Boot Barn is up 13.3% since the beginning of the year, and at $172.94 per share, it is trading close to its 52-week high of $175.60 from July 2025. Investors who bought $1,000 worth of Boot Barn's shares 5 years ago would now be looking at an investment worth $8,739. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
2 days ago
- Business
- Yahoo
3 Cash-Producing Stocks for Long-Term Investors
Businesses with strong free cash flow tend to be more adaptable and resilient. Some of these companies shine bright by using their cash wisely to strengthen their market positions. Identifying the most effective companies isn't easy, and that's why we started StockStory. That said, here are three cash-producing companies that excel at turning cash into shareholder value. Coinbase (COIN) Trailing 12-Month Free Cash Flow Margin: 28.2% Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions. Why Are We Backing COIN? Customer spending is rising as the company has focused on monetization over the last two years, leading to 58.2% annual growth in its average revenue per user Incremental sales significantly boosted profitability as its annual earnings per share growth of 64.5% over the last two years outstripped its revenue performance Robust free cash flow margin of 25.9% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business Coinbase is trading at $407.50 per share, or 31.4x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Ross Stores (ROST) Trailing 12-Month Free Cash Flow Margin: 7.6% Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores. Why Are We Positive On ROST? Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth Same-store sales growth averaged 3.5% over the past two years, showing it's bringing new and repeat shoppers into its stores ROIC punches in at 28.3%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets At $136.58 per share, Ross Stores trades at 20.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. H&R Block (HRB) Trailing 12-Month Free Cash Flow Margin: 17.5% Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses. Why Are We Bullish on HRB? Remarkable 30.5% revenue growth over the last five years demonstrates its ability to capture significant market share Share buybacks catapulted its annual earnings per share growth to 41.5%, which outperformed its revenue gains over the last five years Stellar returns on capital showcase management's ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities H&R Block's stock price of $54.57 implies a valuation ratio of 16.4x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
Dollar General Up 51% in 6 Months: Time to Cash Out or Hold DG Stock?
Dollar General Corporation DG has made an impressive comeback, rising about 50.8% over the past six months. The rebound has been driven by renewed investor confidence in the company's ability to stabilize operations, improve profitability and regain lost ground after a challenging period. With shares now trading significantly higher, investors are faced with a critical question: Is it time to book profits, or does Dollar General stock still warrant a place in portfolios? Closing yesterday's trading session at $107.60, Dollar General has outpaced the industry, which has fallen 0.1%, and the broader S&P 500 index, which has risen 2.3% in the said period. Dollar General has even outperformed its peers, such as Ross Stores, Inc. ROST, Costco Wholesale Corporation COST and Target Corporation TGT. While shares of Costco have risen 0.6% in the past six months, Ross Stores and Target have declined 9.8% and 25.9%, respectively. DG Stock Six-Month Performance Tailwinds Behind DG's Momentum Much of the optimism surrounding Dollar General's momentum stems from management's successful execution of strategic initiatives aimed at revitalizing growth and profitability. DG's focus on store improvements, operational efficiencies and customer engagement is beginning to pay off. These efforts have helped Dollar General capture market share across both consumables and non-consumables. Moreover, its ability to attract higher-income customers seeking value has broadened its customer base and enhanced its growth potential. Margin expansion is another key driver supporting Dollar General's investment appeal. The company expanded gross margins by 78 basis points to 31% in the first quarter, largely driven by shrink mitigation efforts, which contributed 61 basis points alone. This positions Dollar General well for continued margin gains throughout 2025. Inventory management has also been a source of strength, with inventories declining 5% year over year to $6.6 billion, including a 7% reduction on a per-store basis, despite sales growth. The company's real estate strategy also supports a positive long-term outlook. For fiscal 2025, Dollar General plans to execute approximately 4,885 projects, including 575 new store openings and 4,250 remodels through its Project Renovate and Project Elevate programs. These initiatives are expected to enhance performance across its store base, with remodeled stores targeted to deliver comp sales lifts of 3%-8%. Dollar General's ongoing digital transformation adds another layer of opportunity for investors. The company's partnership with DoorDash drove delivery sales up more than 50% year over year, while its own same-day delivery service expanded to more than 3,000 stores. The acceptance of SNAP/EBT payments for delivery orders broadens access to its core customer base and reinforces its value proposition. Additionally, the DG Media Network grew retail media volume by 25% year over year in the first quarter, offering a high-margin revenue stream and enhancing customer engagement through targeted advertising. Reflecting confidence in the future, management raised full-year guidance following first-quarter outperformance. Dollar General now expects net sales growth of 3.7%-4.7%, same-store sales growth of 1.5%-2.5% and earnings in the range of $5.20-$5.80 per share. These revisions underscore management's belief in the company's ability to execute despite ongoing macroeconomic challenges. Moreover, the reaffirmation of long-term targets, including operating margin expansion to 6%-7% by 2028, provides investors with further confidence in the sustainability of Dollar General's growth and profitability trajectory. What May Derail DG's Momentum? Dollar General's recent stock rally masks several risks that could derail the stock's momentum. One key concern is the uncertain tariff environment. While direct imports are limited, less than 40% of indirect imports still come from China. Higher tariffs could lead to price increases, pressuring Dollar General's value-focused customers. Rising costs complicate the outlook. SG&A expenses rose 77 basis points to 25.4% of sales in the first quarter, driven by labor, incentive compensation and maintenance costs. Management expects $180-$200 million in incentive-related headwinds for fiscal 2025, with wage inflation of 3.5%-4% adding pressure. These factors make achieving long-term margin goals more difficult. Traffic trends also remain fragile. While traffic dipped just 0.3% in the first quarter, management acknowledged a tough comparison. Although May showed improvement, sustained traffic gains are crucial to meeting comp targets tied to margin recovery. Any weakness in customer visits could derail these efforts and prolong the path to stronger earnings. Here's How Estimates Shape Up for DG Wall Street analysts have expressed confidence in Dollar General by raising their earnings estimates. Over the past 60 days, the Zacks Consensus Estimate for the current and next fiscal years has risen 3.2% to $5.76 and 4.1% to $6.38 per share, respectively. Image Source: Zacks Investment Research Is Dollar General Stock Undervalued or Overvalued? Dollar General is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 17.79. This valuation reflects a discount compared to the industry's average of 31.71 and the S&P 500's P/E of 22.73. However, the stock appears overvalued compared to its median P/E level of 13.62, observed over the past year. Dollar General is trading at a premium to Target (with a forward 12-month P/E ratio of 12.99) but at a discount to Costco (48.07) and Ross Stores (20.63). Image Source: Zacks Investment Research Is Holding DG Stock the Best Option Now? Given the sharp rally, current investors may consider holding Dollar General stock to capture further upside as the company continues to execute on its strategic priorities and benefits from improved operational performance. However, potential investors should exercise patience as much of the near-term recovery appears priced in, and risks tied to tariffs, costs and traffic trends remain. A wait-and-watch approach could offer a better entry point, particularly if broader market volatility or company-specific challenges create more favorable valuations. DG stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Ross Stores, Inc. (ROST): Free Stock Analysis Report
Business Insider
3 days ago
- Business
- Business Insider
Ross Stores (ROST) Gets a Buy from Goldman Sachs
Goldman Sachs analyst Brooke Roach maintained a Buy rating on Ross Stores yesterday and set a price target of $163.00. The company's shares closed yesterday at $134.02. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Roach covers the Consumer Cyclical sector, focusing on stocks such as Kontoor Brands, Kohl's, and Nike. According to TipRanks, Roach has an average return of 6.0% and a 51.63% success rate on recommended stocks. Currently, the analyst consensus on Ross Stores is a Strong Buy with an average price target of $154.69, representing a 15.42% upside. In a report released on July 5, Jefferies also maintained a Buy rating on the stock with a $0.00 price target. Based on Ross Stores' latest earnings release for the quarter ending May 3, the company reported a quarterly revenue of $4.98 billion and a net profit of $479.25 million. In comparison, last year the company earned a revenue of $4.86 billion and had a net profit of $487.99 million
