Ross Stores Story

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ROST -- USA Stock  

USD 87.93  1.25  1.44%

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. The essential rationale behind this perspective is to break down our current position on Ross Stores for private investors considering to short it. We will break down why Ross Stores private investors may still consider a stake in the business.
Published over a month ago
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Estimating Ross Stores (NASDAQ:ROST) price for September 2020.
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

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. Please check the breakdown between Ross Stores's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Ross Stores, but it might be worth checking our own buy vs. sell analysis

Breaking down Ross Stores Indicators

The small drop in market price for the last few months created some momentum for private investors as it was traded today as low as 88.57 and as high as 91.2 per share. The company directors and management did not add much value to Ross Stores investors in July. However, diversifying your holdings with Ross Stores or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.5. The current volatility is consistent with the ongoing market swings in July 2020 as well as with Ross Stores unsystematic, company-specific events.

Returns Breakdown

Return on Assets
Return on Equity
Return on Investment63.39
Return on Assets22.66
Return on Equity48.94
Return Capital0.52
Return on Sales0.11

Are you still undecided about Ross Stores?

Value At Risk just dropped to -4.45, may call for upcoming price decrease. 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.

The Bottom Line

Whereas some companies in the apparel retail industry are either recovering or due for a correction, Ross Stores may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor quit any shares of Ross Stores at this time. The Ross Stores risk-reward trade off is not appealing enough to do any trading. 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.

About Contributor

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 Raphi Shpitalnik do not own shares of Ross Stores. Please refer to our Terms of Use for any information regarding our disclosure principles.

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