Ross Stores, Inc. (NASDAQ:ROST)

CAPS Rating: 4 out of 5

The Company operates two chains of off-price retail apparel and home accessories stores, which target value-conscious women and men between the ages of 18 and 54, primarily from middle income households.


Player Avatar EVplusEV (57.99) Submitted: 11/13/2012 8:39:24 PM : Outperform Start Price: $55.94 ROST Score: +6.08

I bought ROST back in the summer when it traded at 15x estimates with a share price of $60, I exited the trade when it got near it's average of 18x estimates or $67 per share. We are near 15x again, only this time I believe the situation is a better value due to the fact that the stock has been hammered recently despite excellent same store comps. I believe the price action has been caused by profit taking in light of fiscal cliff (capital gains) worries. We are coming into the holiday season and there are more bargain hunters in the current economy, which will help ROST greatly. I'm in ROST as a trade with an exit in the $67-$69 range.

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