Ross Stores, Inc. (NASDAQ: ROST) Has A Bright Future

FTN Equity Capital Markets Corporation maintains a neutral rating on Ross Stores, Inc. (NASDAQ: ROST) as analysts feel that Ross Stores had reported strong performance in the third quarter of 2009.

ROST sales increased by 12.1% and diluted EPS grew by 90.9% for the third quarter of 2009. Gross margin improved by 26.3% in the third quarter due to improved merchandise margin, inventory shrink, lower freight costs and occupancy expense.

However, for the fourth quarter of 2009, ROST expects diluted EPS guidance to be in the range of $0.88-$0.94, as compared to FTN Equity Capital’s estimate of $1.00 and $0.99. Moreover, sales are expected to grow by around 9%-10% and comparable store sales to grow by 5%-6% for the fourth quarter.

The 52 week trading range for ROST is $21.70 - $50.50. In the last trading session, ROST closed at $43.81. So far in 2009, ROST climbed over 45%.