Monday, March 11, 2013

Why Ross Stores Is Poised to Pop

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, off-price apparel and home fashion retailer Ross Stores (NASDAQ: ROST  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Ross Stores, and see what CAPS investors are saying about the stock right now.

Ross Stores facts

Headquarters (founded)

Pleasanton, Calif. (1957)

Market Cap

$12.8 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$9.4 billion

Management

CEO Michael Balmuth

COO Michael O'Sullivan

Return on Equity (average, past 3 years)

46%

Cash/Debt

$625.4 million / $150.0 million

Dividend Yield

1.2%

Competitors

Kohl's (NYSE: KSS  )

TJX Companies (NYSE: TJX  )

Wal-Mart Stores (NYSE: WMT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 424 members who have rated Ross Stores believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star 10cent, succinctly summed up the Ross Stores bull case for our community:

I still like off-price brick and mortar retailers. Call it the bored house-wife affect, or rainy-day affect, but people still like to browse and shop for bargains in retail stores (as opposed to Internet shopping). Companies like [Ross Stores] and TJX are still doing well and are poised for growth.

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Ross Stores may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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