Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Morgan Stanley Thinks Ross Stores Was ‘Stellar Across The Board’

Courtesy of Benzinga.

Morgan Stanley Thinks Ross Stores Was 'Stellar Across The Board'

Ross Stores, Inc. (NASDAQ: ROST) reported Thursday its third quarter earnings, which exceeded expectations by a notable margin.

The Analyst

Morgan Stanley’s Kimberly Greenberger maintains an Overweight rating on Ross Stores’ stock with a price target boosted from $70 to $77.

The Thesis

Ross Stores’ earnings report was “stellar across the board” and exceeded even the “most bullish expectations,” Greenberger said in a note. For instance, the off-price retailer’s 4 percent comp not only came in ahead of expectations of a 1-2 percent comp, but could prove to be “one of the best results in our coverage” on both a one-year and two-year basis. The company also benefited from both traffic and units per transaction, which is particularly impressive at a time when the retail environment as a whole is volatile.

Management’s fourth quarter comp guidance of 2 to 3 percent is merely “icing on the cake” and could prove to be conservative given the strong momentum seen in the third quarter, the analyst said. Investors could expect to see “significantly more” earnings upside and the market will “continue to reward the stock.”

Off-price retailers like Ross Stores continue to steal market share from department stores and specialty retailers and there are “no signs of the beat and raise story stopping in 4Q or 2018.”

Price Action

Shares of Ross Stores were trading higher by more than 8 percent Friday morning at $71.50, which is above the stock’s 52-week high of $69.81.

Related Links:

Amazon Can’t Win The Battle Against Off-Price Retailers

TJX, Ross And Burlington Will Open The Same Number Of Stores Macy’s, Sears And JC Penney Are Closing

Latest Ratings for ROST

Date Firm Action From To
Nov 2017 Morgan Stanley Maintains Overweight
Oct 2017 Buckingham Assumes Neutral
Sep 2017 JP Morgan Upgrades Neutral Overweight

View More Analyst Ratings for ROST


View the Latest Analyst Ratings

Posted-In: Department Stores Kimbergly Greenberger Morgan Stanley Off Price Retailers retail earningsAnalyst Color Price Target Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!