Market Overview

Ross Stores: Finding Buried Treasure In The Retail Space

Ross Stores: Finding Buried Treasure In The Retail Space

Discount retailers as diamonds in the rough for the broader retail sector is becoming a chorus that continues to gain traction.

Ross Stores, Inc. (NASDAQ: ROST) is further solidifying this rhetoric, reporting a first-quarter earnings and sales beat on Thursday and a comps increase by an impressive 3 percent.

Quarter, In Review & Analyst's Take

Morgan Stanley is calling Ross’ first quarter a retail treasure, given its solid performance amid an “extremely challenging environment, significant exposure to low income consumers, and unfavorable weather,” said analyst Kimberly Greenberger.

The company’s strong comp figures were driven by an increase in traffic and average transaction size — a rarity among Morgan Stanley's recent retail coverage.

Channel checks in May show sales trends are improving broadly, leading Morgan Stanley to believe Ross could continue to deliver growth despite facing tougher compares.

“ROST is a best-in-class operator and has delivered 10 years of operating margin expansion and consistent comp and EPS growth. The off-price backdrop continues to look favorable, insulated from eCommerce disintermediation and with growth in expanding categories like Home,” said Greenberger.

Recent department store closures and weak fundamentals in remaining stores presents opportunity for Ross to continue to gain market share, according to Morgan Stanley.

Morgan Stanley reiterated its Overweight rating on the stock with a $69 price target.

At last check, shares of Ross Stores were up 2.36 percent at $62.51.

Related Links:

Uniqueness Helping Brick-And-Mortar Ollie's Bargain Outlet Fend Off The E-Commerce Offensive

Does Ross Stores Have The Antidote To What Ails Retail?
Image Credit: By Michael Rivera (Own work) [CC BY-SA 3.0 (], via Wikimedia Commons

Latest Ratings for ROST

Jan 2021Morgan StanleyMaintainsOverweight
Nov 2020Morgan StanleyMaintainsOverweight
Nov 2020Morgan StanleyMaintainsOverweight

View More Analyst Ratings for ROST
View the Latest Analyst Ratings


Related Articles (ROST)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News Guidance Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

IBIOCantor FitzgeraldInitiates Coverage On3.0
UPLDCanaccord GenuityMaintains57.0
EJefferiesInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at