M in 2020. In this article, we will review Ross Stores as a potential position in addition to your existing holdings. We will break down why it could be a game-changer for Ross Stores private investors. " name="Description" /> M in 2020. In this article, we will review Ross Stores as a potential position in addition to your existing holdings. We will break down why it could be a game-changer for Ross Stores private investors. " /> M in 2020. In this article, we will review Ross Stores as a potential position in addition to your existing holdings. We will break down why it could be a game-changer for Ross Stores private investors. " />

Our projection for Ross Stores (NASDAQ:ROST) in September

Ross Stores Book Value per Share is comparatively stable at the moment as compared to the past year. Ross Stores reported Book Value per Share of 5.01 in 2019. Dividends per Basic Common Share is likely to gain to 0.39 in 2020, whereas Working Capital is likely to drop slightly above 480.6 M in 2020. In this article, we will review Ross Stores as a potential position in addition to your existing holdings. We will break down why it could be a game-changer for Ross Stores private investors.
Published over a year ago
View all stories for Ross Stores | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Raphi Shpitalnik

This firm has a beta of 0.701. Let's try to break down what Ross Stores's beta means in this case. As returns on the market increase, Ross Stores returns are expected to increase less than the market. However, during the bear market, the loss on holding Ross Stores will be expected to be smaller as well. The beta indicator helps investors understand whether Ross Stores moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Ross Stores deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Ross Stores. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Ross Stores

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Ross Stores' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ross Stores. Your research has to be compared to or analyzed against Ross Stores' peers to derive any actionable benefits. When done correctly, Ross Stores' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Ross Stores.

How important is Ross Stores's Liquidity

Ross Stores financial leverage refers to using borrowed capital as a funding source to finance Ross Stores ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ross Stores financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ross Stores' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ross Stores' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Ross Stores's total debt and its cash.

Another Deeper Perspective

Ross Stores currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.04. However, we do advice investors to further question Ross Stores expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Margin Breakdown

9.86
Profit Margin
14.14
Operating Margin
16.4
EBITDA Margin
Operating Margin14.14
EBITDA Margin16.4
Gross Margin29.57
Profit Margin9.86

Will Ross Stores continue to go mental?

Newest downside variance is at 7.29. Ross Stores currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.04. However, we do advice investors to further question Ross Stores expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Ross Stores

Whereas many other companies in the apparel retail industry are either recovering or due for a correction, Ross Stores may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Ross Stores as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ross Stores.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ross Stores. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com