Goldman Sachs Suggests Buying Calls on Ross Stores

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Ross Stores

ahead of Thursday's same-store-sales metrics. Goldman Sachs retail analyst Adrianne Shapira believes that Ross Stores is poised to report better than expected same store sales on Thursday. Her channel checks suggest above trend traffic, driven by trade down to value retailers, pent up demand from the hurricane, favorable weather in the month, and back to school selling. She expects the company to report +5% September comp on October 6, above consensus of 3.4%. The analysts suggest buying the October $80 calls for $1.60. Ross Stores, Inc. operates two brands of off-price retail apparel and home accessories stores. As of January 29, 2011, the company operated a total of 1,055 stores, of which 988 were Ross Dress for Less locations in 27 states and Guam and 67 were dd's DISCOUNTS stores in six states.