Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued ...

Core Insights - Ross Stores, Inc. (ROST) is positioned for growth due to strategic store expansions and a successful off-price business model, leading to strong comparable-store sales performance [1][2] - Analysts project fiscal 2024 sales and earnings per share (EPS) to reach $21.3 billion and $6.20, reflecting year-over-year growth of 4.4% and 11.5% respectively [1] - The company plans to open 90 new stores in fiscal 2024, including 75 Ross and 15 dd's DISCOUNTS, while optimizing its store portfolio by closing or relocating 10-15 older stores [2] Strategic Endeavors - Ross Stores has consistently executed store expansions, opening 21 New Rock and three dd's DISCOUNT stores in the fiscal second quarter [2] - The long-term goal includes expanding "Ross Dress for Less" to 2,900 stores and dd's DISCOUNTS to 700 stores [2][3] - The off-price retail model continues to attract value-conscious customers, enhancing product allocation and margins [3] Financial Performance - Comparable-store sales (comps) rose 4% in the fiscal second quarter, driven by increased customer traffic and larger basket sizes, resulting in a 7% year-over-year sales improvement [5] - For the third and fourth quarters of fiscal 2024, comps growth is projected to be between 2% and 3% [5] - The cost of goods sold increased by 6.2% year over year, and selling, general, and administrative expenses grew by 3.5% year over year, impacting profitability [4] Market Position - ROST shares have increased by 25.2% over the past year, compared to the industry's growth of 43.1% [7] - The company currently holds a Zacks Rank 3 (Hold) [7]

Ross Stores (ROST) closed the most recent trading day at $146.78, moving -0.64% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.04%.Prior to today's trading, shares of the discount retailer had lost 2.66% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.43% and the S&P 500's gain of 1.25% in that time.The investment community will be payi ...

Ross Stores, Inc. (ROST) is well-poised for growth, thanks to its robust strategic efforts. Solid customer response for its merchandise across the banners has been boosting its comparable-store sales (comps) performance for a while. Its store-expansion plans and off-price model also bode well. Currently trading at $150.73, the stock is hovering around its 52-week high of $163.60, reached on Aug. 23, 2024. However, it is trading at a 39.1% premium to its 52-week low mark.Let’s find out more.Off-Price Model & ...

Ross Stores, Inc. (NASDAQ: ROST ) operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names. The company is just shy of 2000 retail locations spanning across 40 I have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sh ...

Ross Stores (ROST) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ROST crossed above the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.Similar ...

Core Insights - Ross Stores reported revenue of $5.29 billion for the quarter ended July 2024, reflecting a year-over-year increase of 7.2% [1] - Earnings per share (EPS) for the quarter was $1.59, up from $1.32 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $5.25 billion by 0.73%, while the EPS surpassed the consensus estimate of $1.49 by 6.71% [1] Performance Metrics - Comparable store sales increased by 4% year-over-year, outperforming the average estimate of 2.7% from six analysts [3] - The store count at the end of the period was 2,148, slightly below the average estimate of 2,151 from four analysts [4] - The number of stores opened during the quarter was 21, which was lower than the average estimate of 24 from three analysts [5] Stock Performance - Over the past month, shares of Ross Stores have returned +6.5%, compared to a +2.9% change in the Zacks S&P 500 composite [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company reported strong Q2 and H1 fiscal 2024 sales and net earnings growth, maintaining a robust balance sheet [Condensed Consolidated Statements of Earnings](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Consolidated Earnings Summary (in thousands, except per share data) | Metric | Three Months Ended Aug 3, 2024 ($ thousands) | Three Months Ended Jul 29, 2023 ($ thousands) | Six Months Ended Aug 3, 2024 ($ thousands) | Six Months Ended Jul 29, 2023 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | **Sales** | **$5,287,519** | **$4,934,905** | **$10,145,586** | **$9,429,591** | | Earnings before taxes | $702,583 | $594,854 | $1,339,646 | $1,082,109 | | **Net earnings** | **$527,148** | **$446,319** | **$1,015,138** | **$817,510** | | **Diluted EPS** | **$1.59** | **$1.32** | **$3.05** | **$2.41** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | August 3, 2024 ($ thousands) | February 3, 2024 ($ thousands) | July 29, 2023 ($ thousands) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $4,668,137 | $4,872,446 | $4,583,606 | | Merchandise inventory | $2,490,558 | $2,192,220 | $2,300,063 | | **Total current assets** | **$7,594,983** | **$7,398,138** | **$7,273,752** | | **Total assets** | **$14,678,021** | **$14,300,109** | **$13,987,302** | | **Liabilities & Equity** | | | | | Accounts payable | $2,217,227 | $1,955,850 | $2,150,999 | | Long-term debt | $1,513,826 | $2,211,017 | $2,458,615 | | **Total liabilities** | **$9,547,489** | **$9,428,783** | **$9,532,560** | | **Total stockholders' equity** | **$5,130,532** | **$4,871,326** | **$4,454,742** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended (in thousands) | Cash Flow Activity | August 3, 2024 ($ thousands) | July 29, 2023 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $961,042 | $1,116,281 | | Net cash used in investing activities | ($333,735) | ($363,459) | | Net cash used in financing activities | ($830,040) | ($719,766) | | **Net (decrease) increase in cash** | **($202,733)** | **$33,056** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Sales Mix by Merchandise Category | Category | Six Months Ended Aug 3, 2024 | Six Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Home Accents and Bed and Bath | 25% | 25% | | Ladies | 23% | 24% | | Men's | 16% | 15% | | Accessories, Lingerie, etc. | 14% | 15% | | Shoes | 13% | 13% | | Children's | 9% | 8% | - The company facilitates a voluntary supply chain finance program, with **$182.5 million** owed to financial institutions as of August 3, 2024[40](index=40&type=chunk)[41](index=41&type=chunk) - In March 2024, the Board approved a new two-year, **$2.1 billion** stock repurchase program, with **3.7 million shares** repurchased for **$525.0 million** in the first six months of 2024[37](index=37&type=chunk) - The effective tax rate for the six-month period ended August 3, 2024, was approximately **24%**, consistent with the prior year period[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 performance to sales growth and improved operating margin, maintaining robust liquidity and strategic capital investments [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Key Performance Indicators | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Sales growth | 7.1% | 7.7% | 7.6% | 5.8% | | Comparable store sales growth | 4% | 5% | 3% | 3% | | Cost of goods sold (% of sales) | 71.7% | 72.3% | 71.8% | 72.8% | | SG&A (% of sales) | 15.8% | 16.4% | 15.9% | 16.5% | | Net earnings (% of sales) | 10.0% | 9.0% | 10.0% | 8.7% | - Cost of goods sold as a percentage of sales decreased by **60 basis points** in Q2 2024, driven by lower distribution costs (**70 bps**), buying costs (**55 bps**), and domestic freight (**15 bps**), partially offset by an **80 basis point decrease** in merchandise margin[87](index=87&type=chunk) - SG&A as a percentage of sales decreased by **55 basis points** in Q2 2024, primarily due to higher sales and lower incentive compensation expense[89](index=89&type=chunk) - The company opened **24 net new stores** in Q2 2024 and is on track to open approximately **90 new stores** for the full fiscal year, ending the quarter with **2,148 total stores**[81](index=81&type=chunk)[82](index=82&type=chunk) - The **$0.27 increase** in Q2 diluted EPS to **$1.59** was driven by an **18% increase** in net earnings and a **2% reduction** in weighted-average shares outstanding from stock repurchases[93](index=93&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=19&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) - Cash provided by operating activities decreased to **$961.0 million** for the first six months of 2024 from **$1.1 billion** in the prior year, mainly due to higher incentive compensation payments and lower accounts payable leverage[96](index=96&type=chunk) - Capital expenditures for fiscal 2024 are projected to be approximately **$780 million**, primarily for supply chain investments, new stores, and IT systems[101](index=101&type=chunk) - During the first six months of 2024, the company repurchased **3.7 million shares** for **$525.0 million** under its new **$2.1 billion** repurchase program[104](index=104&type=chunk) - The company ended the second quarter with **$4.7 billion** in unrestricted cash balances and **$1.3 billion** available under its credit facility, considered adequate for the next 12 months[107](index=107&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on cash balances, with fixed-rate debt and no material impact expected - The company's primary market risk is from changes in interest rates affecting interest income on cash, cash equivalents, and restricted cash[114](index=114&type=chunk)[115](index=115&type=chunk) - There were no borrowings outstanding under the variable-rate Credit Facility as of August 3, 2024, and all outstanding Senior Notes carry fixed interest rates[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal financial reporting controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of August 3, 2024[116](index=116&type=chunk) - No changes in internal control over financial reporting occurred during the second fiscal quarter of 2024 that materially affected or are likely to materially affect these controls[118](index=118&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, primarily wage and hour lawsuits, with no material financial impact expected - The company is party to various legal proceedings, including class action lawsuits in California related to wage and hour laws[37](index=37&type=chunk)[120](index=120&type=chunk) - Management does not expect the resolution of currently pending litigation to have a material adverse effect on the company's financial condition or results of operations[39](index=39&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K - The report refers to the risk factors detailed in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, indicating no material changes[121](index=121&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1.8 million shares in Q2 2024 under its new $2.1 billion program, with $1.575 billion remaining Share Repurchases in Q2 2024 | Period | Total Shares Purchased | Average Price Paid ($) | Value of Shares Remaining for Repurchase ($ thousands) | | :--- | :--- | :--- | :--- | | May 2024 | 481,660 | $135.01 | $1,773,050 | | June 2024 | 732,033 | $145.64 | $1,667,130 | | July 2024 | 634,821 | $145.09 | $1,575,020 | | **Total Q2** | **1,848,514** | **$142.68** | **$1,575,020** | - In March 2024, the Board of Directors approved a new two-year program to repurchase up to **$2.1 billion** of common stock through January 31, 2026[123](index=123&type=chunk) [Item 6. Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - The report includes standard exhibits such as CEO/CFO certifications under Sarbanes-Oxley Sections 302(a) and 1350, and Inline XBRL documents[125](index=125&type=chunk)

With solid trailing results and inspiring profitability guidance, the company delivered a satisfying quarterly-earnings report.Ross Stores (ROST 1.76%) was a post-earnings winner of a stock on Friday after posting its second-quarter results following market hours Thursday. Clearly satisfied with the news, investors bid the discount retailer's shares up by nearly 2%. This was just enough to edge past the gain of the lively S&P 500 index that day.A double beat in the second quarterRoss's total sales amounted ...

Ross Stores, Inc. ROST shares are trading higher on Friday.Yesterday, the company reported better-than-expected second-quarter financial results and raised its outlook.Ross Stores expects third-quarter earnings of between $1.35 and $1.41 per share, versus the $1.38 per share estimate, and earnings of between $1.60 and $1.67 per share for the fourth quarter.Analysts covering the retail behemoth provided their takes:JP Morgan analyst Matthew R. Boss reiterated the Overweight rating on the stock, raising the p ...