Ross Stores' Expansion & Other Growth Plans Aid: Apt to Hold the Stock

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]