Ross Stores Inc. (ROST): Retail's Starring Winner Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Ross Stores ( ROST) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day down 0.7%. By the end of trading, Ross Stores rose $1.89 (3.4%) to $58.06 on heavy volume. Throughout the day, 4.3 million shares of Ross Stores exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $55.56-$58.39 after having opened the day at $56.26 as compared to the previous trading day's close of $56.17. Other companies within the Retail industry that increased today were: SUPERVALU ( SVU), up 11.7%, dELiA*s ( DLIA), up 10.3%, Sears Hometown & Outlet Stores ( SHOS), up 5.8%, and Alon Holdings Blue Square - Israel ( BSI), up 4.2%.
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Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Ross Stores has a market cap of $12.46 billion and is part of the services sector. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Ross Stores a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Ross Stores as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Pacific Sunwear ( PSUN), down 9.8%, Tilly's ( TLYS), down 8.4%, Guess ( GES), down 7.2%, and Cato Corporation ( CATO), down 5.6%, were all laggards within the retail industry with Gap ( GPS) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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