Core Insights - Ross Stores, Inc. operates a chain of off-price retail apparel and home accessories stores, utilizing a successful business model that appeals to cost-conscious consumers [1] - The company is facing significant macroeconomic and geopolitical challenges, including tariff pressures and persistent inflation, which are impacting its cost structure and visibility into future performance [2][4] Financial Performance and Guidance - Management has withdrawn fiscal 2025 sales and earnings guidance due to uncertainties related to tariffs and macroeconomic conditions, leading to a more cautious outlook for the second quarter [3][10] - The Zacks Consensus Estimate for fiscal 2025 EPS indicates a year-over-year decline of 1.4%, while fiscal 2026 EPS is expected to grow by 9% [10] Market Position and Valuation - Ross Stores' shares have decreased by 15.7% year to date, contrasting with the industry's growth of 2.3% [8] - The company trades at a forward price-to-earnings ratio of 19.66X, significantly lower than the industry average of 31.86X [9] Merchandise Sourcing and Cost Pressures - More than half of Ross Stores' merchandise is sourced from China, making the company vulnerable to rising tariff-related costs [4][10] - Although the company is implementing mitigation strategies such as supply-chain diversification and vendor negotiations, these may not fully alleviate the financial pressures [5]

In the latest trading session, Ross Stores (ROST) closed at $127.59, marking a -2.73% move from the previous day. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%. Coming into today, shares of the discount retailer had gained 0.02% in the past month. In that same time, the Retail-Wholesale sector gained 4.14%, while the S&P 500 gained 4.97%. The investment community will be closely monitoring the performance ...

Core Insights - The discount retail sector, represented by Ross Stores, Inc. (ROST) and Dollar Tree, Inc. (DLTR), is thriving as consumers prioritize value and affordability amid economic uncertainty [1][2][3] Group 1: Company Overview - Ross Stores is the leading off-price retailer in the U.S., known for offering recognizable brands at lower prices than traditional department stores, demonstrating strong operational efficiency and profitability [4][7] - Dollar Tree has solidified its position in the discount retail sector, focusing on its core Dollar Tree banner and divesting Family Dollar, which has led to increased traffic and sales [8][10][12] Group 2: Financial Performance - Ross Stores reported steady comparable sales with improved customer traffic and strong performance in key categories like cosmetics and women's apparel [5][6] - Dollar Tree experienced broad-based comparable sales growth in fiscal Q1 2025, driven by increased traffic and average ticket sizes, particularly in consumables [10][11] Group 3: Strategic Initiatives - Ross Stores employs an agile buying model and a "packaway" approach to maintain product freshness and value, appealing to a diverse demographic [6][7] - Dollar Tree is expanding its multi-price strategy with "3.0" stores, moving beyond the traditional pricing model to enhance its product mix and store conditions [11][13] Group 4: Market Positioning - Ross Stores is expanding its physical footprint and modernizing its brand experience, indicating confidence in continued demand for its value-driven model [7] - Dollar Tree's transformation and focus on higher-income consumers, along with its effective execution in the value retail space, position it favorably against competitors [12][13] Group 5: Stock Performance and Valuation - Ross Stores has a forward P/E ratio of 20.18X, below the industry average, while Dollar Tree's forward P/E stands at 17.76X, indicating a reasonable valuation for both [18][19] - In the past six months, Dollar Tree's stock surged 38.3%, outperforming Ross Stores' 15.8% decline, reflecting investor confidence in Dollar Tree's growth strategy [19][23] Group 6: Future Outlook - The Zacks Consensus Estimate suggests Ross Stores will see a 3.9% sales growth but a 1.6% decline in EPS for fiscal 2025, while Dollar Tree is expected to achieve a 6.5% growth in EPS despite a significant sales decline [15][16] - Current market dynamics favor Dollar Tree as a stronger investment option due to its robust transformation and growth roadmap [23][24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 03, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-14678 Ross Stores, Inc. (Exact name of registrant as specified in its charter) Delaware 94-1390387 (State or oth ...

Core Insights - Ross Stores Inc. (ROST) experienced a significant trading signal known as Power Inflow, indicating potential upward momentum in the stock price [3][4] - The Power Inflow occurred at a price of $130.50, suggesting a bullish trend for traders looking to capitalize on expected price increases [4][8] - Following the Power Inflow, ROST's stock reached a high price of $137.77, resulting in returns of 5.6% and a close price of $137.46, yielding a 5.3% return [8] Trading Signals - Power Inflow is a crucial indicator for traders, reflecting institutional activity and guiding trading decisions [4][6] - Order flow analytics, which includes the analysis of buy and sell orders, helps traders interpret market conditions and identify opportunities [5][7] - The Power Inflow typically occurs within the first two hours of market opening, influencing the stock's direction for the remainder of the trading day [6] Market Implications - The occurrence of Power Inflow is interpreted as a bullish signal by active traders, indicating a potential entry point for investments [4][5] - Incorporating order flow analytics into trading strategies can enhance trading performance and decision-making [7] - The importance of a trading plan that includes profit targets and stop losses is emphasized to manage risk effectively [8]

Group 1 - The article discusses concerns regarding the consumer spending environment, particularly in discretionary spending, which has led to a hold rating on Ross Stores (NASDAQ: ROST) [1] - The removal of FY25 guidance by Ross Stores raises additional concerns about the company's future performance [1] Group 2 - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1]

Core Viewpoint - The stock market is facing a new economic regime influenced by trade tariffs, leading to uncertainty in growth, margins, and earnings for companies affected by these tariffs [1] Group 1: Ross Stores Overview - Ross Stores' stock has recently declined by 12.5%, attributed to broader market sell-offs and its quarterly earnings results [5][4] - The company reported flat sales growth compared to last year, which is better than declining figures from peers in the retail sector [7] - Despite the challenges, Ross Stores has a strong cash flow, reporting a net operating cash flow of $409.7 million for the quarter, an 11% increase from $368.9 million last year [10] Group 2: Tariff Impact and Company Strategy - Ross Stores imports a small portion of its merchandise, allowing it to manage costs better amidst tariff increases [8] - The company has guided for 3% to 4% comparable sales growth for the second quarter, indicating potential demand despite inflationary pressures [10] - Management plans to increase store count by 3.6% over the year, signaling confidence in future demand [10] Group 3: Financial Metrics and Forecast - Ross Stores has generated a return on invested capital (ROIC) of 17.6%, providing room to absorb tariff costs while maintaining its low-cost retail position [13] - The stock price forecast for Ross Stores is $158.67, indicating a 15.60% upside potential from the current price of $137.26 [12] - The company has announced a $1 billion stock repurchase plan for 2025, which could support stock recovery during market dips [14]

Investment Rating - The report maintains an "Overweight" rating for Ross Stores with a price target of $141.00, lowered from a previous target of $161.00 [2][19][20]. Core Insights - Ross Stores reported an adjusted 1Q EPS of $1.47, exceeding the Street estimate of $1.44 and within management's guidance of $1.33 to $1.47, driven by flat same-store sales growth and stable operating margins [1][16]. - Management has withdrawn FY25 guidance due to uncertainties surrounding tariff announcements but has provided expectations for 2Q25, forecasting EPS of $1.40 to $1.55, which is below the Street estimate of $1.65 [1][14]. - The company is positioned favorably in the off-price retail sector, with a target of 2,500 stores implying over 10 years of annual square footage growth of 5-6% [10][19]. Financial Performance - For 1Q, Ross Stores achieved flat same-store sales growth, with April showing a notable improvement to +3% compared to previous months [1][16]. - The company reported a 12.2% EBIT margin, above the Street's expectation of 11.9%, and gross margin remained flat year-over-year at 28.2% [1][18]. - The report indicates a revenue growth of 2.6% for 1Q, with net income of $479 million and an adjusted EPS of $1.47 [18]. Future Outlook - Management expects 2Q same-store sales to be flat to +3%, which represents a significant acceleration compared to 1Q [1][14]. - The anticipated operating margin for 2Q is projected to decline to 10.7-11.4%, below the Street's expectation of 12.4% [1][14]. - The report highlights potential headwinds from tariffs, estimating a quarterly EPS impact of $0.11 to $0.16 due to tariff-related costs [7][14]. Valuation Metrics - The revised price target of $141 is based on approximately 22 times the revised 2026 EPS, reflecting a low-double-digit growth algorithm [11][20]. - The report outlines adjusted EPS estimates for FY25 at $6.16, down from a previous estimate of $6.60, with a projected operating margin of 11.4% [2][14]. Market Position - Ross Stores is well-positioned to capture market share from department stores, benefiting from a strong value proposition that offers prices 20-60% lower than competitors [10][19]. - The company has a robust balance sheet, ending 1Q with $3.8 billion in cash against $1.5 billion in debt, supporting its growth strategy [16][18].

本周，标普500指数累跌约2.3%，道指累跌约2.5%，纳指累跌约2.4%，纳斯达克100指数累跌约2.4%， 半导体指数累跌于4.4%、银行指数累跌约4.2%，美国科技股七巨头指数跌约2.8%、"特朗普关税输家指 数"累跌5%，小盘股指跌3.3%，生物科技指数涨0.4%。 纳斯达克100指数初步收跌0.9%，成分股Workday跌12.4%，Copart跌11.6%，罗斯百货跌9.9%， CrowdStrike则涨2.9%，Grail涨3.6%，Intuit涨8.2%。 周五当天，标普500指数初步收跌0.6%，科技板块跌1.2%，电信、可选消费、金融等板块至多跌0.9%， 公用事业板块涨1.2%。 ...

Core Insights - The article compares Dollar General (DG) and Ross Stores (ROST) to determine which stock is more attractive to value investors [1] Valuation Metrics - Both DG and ROST currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - DG has a forward P/E ratio of 18.04, while ROST has a forward P/E of 23.69, suggesting DG is more attractively priced [5] - The PEG ratio for DG is 2.61, compared to ROST's 2.96, indicating DG may offer better value relative to its expected earnings growth [5] - DG's P/B ratio is 2.99, significantly lower than ROST's P/B of 9.12, further supporting DG's valuation advantage [6] - Based on these metrics, DG holds a Value grade of A, while ROST has a Value grade of C, indicating DG is the superior value option at this time [6]