Ross Stores (ROST) Stock Falls Today - Jim Cramer Says Company Has Room to Expand
NEW YORK (TheStreet) -- Shares of Ross Stores (ROST) - Get Report fell slightly, down 0.6% to $105.74 in afternoon trading Wednesday after the stock touched a 52-week high earlier in the week.
Ross Stores hit an intraday high of $107.36 on Monday, but the stock has sold off slightly since then.
Jim Cramer, Portfolio Manager of the Action Alerts PLUS charitable trust, commented on Ross Stores in a recent post on RealMoney.com. Here is what Cramer had to say about the stock:
We are now in leader-versus-laggard zone, and that's one of the most fraught moments in investing. In other words, after a big run in the best groups for the year, now you have to decide: when you buy something, do you buy a stock that's already soared and might be tapped out, or do you buy something that hasn't moved much at all and might be suspect or has just been left behind for no real good reason?
Let's take the most glaring cases right now: retailers and restaurants.
How about Ross Stores and TJX (TJX) - Get Report? Here are two off-priced retailers that are certain to benefit from the clothing stalled by the port slowdown out west that now must be offloaded to one of these two because the season was missed. TJX has put out terrific numbers over time, but that last quarter gave you guidance that the street didn't like.
In the meantime, you have Ross just delivering and delivering. But Ross is up 13% and TJX is flat and Ross has a 22 multiple and TJX sells at 20x earnings. In this case, I would say buy neither, but if Ross Stores comes down, just buy it as the company has a lot of room to expand and is very easy off price story to comprehend without all of the TJX's moving parts.
- Jim Cramer, 'Cramer: Stay With the Winning Horse' originally published 3/17/2015 on RealMoney.com.
Want more information like this from Jim Cramer BEFORE your stock moves? Learn more about RealMoney.com now.
Bob Lang, co-Portfolio Manager of Trifecta Stocks, had the following to say about Ross Stores' chart:
Not many consistent winners in the retail space but ROST is one of them. After shooting higher post earnings it continues to consolidate at a high level base. The MACD is rolling over and this is likely entering a pullback. The relative strength also shows some fatigue and we mark the uptrend line as an area where we should find buyers stepping up.
Separately, TheStreet Ratings team rates ROSS STORES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROSS STORES INC (ROST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: ROST Ratings Report