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If You Invested $1000 in Ross Stores a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Ross Stores (ROST) ten years ago? It may not have been easy to hold on to ROST for all that time, but if you did, how much would your investment be worth today?

Ross Stores' Business In-Depth

With that in mind, let's take a look at Ross Stores' main business drivers.

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Based in Dublin, CA, Ross Stores Inc. operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company operates its stores under the Ross Dress for Less (Ross) and dd’s DISCOUNTS names. The company’s stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas.

Ross Stores primarily offers in-season, branded, and designer apparel, footwear, accessories and other home-related merchandise for everyone in the family. This format primarily targets middle-income households. Prices offered at Ross are generally 20% to 60% below the regular prices of most department and specialty stores.

dd’s DISCOUNTS features more moderately-priced first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family. These stores target moderate-income households. The dd’s DISCOUNTS stores offer products at a 20% to 70% lesser price than the moderate department and discount stores.

Ross Stores remains focused with its store expansion initiatives over the years. Further, the company’s efforts to expand base by making efforts to increase penetration in the existing as well as new markets. In this regard, it opened 26 stores across nine different states in February and March.

As of May 24, 2024, Ross Stores operated 2,127 outlets, including 1,775 Ross stores across 43 states, the District of Columbia and Guam and 352 dd’s DISCOUNTS stores in 22 states.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Ross Stores ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in June 2014 would be worth $4,384.20, or a gain of 338.42%, as of June 20, 2024, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 180.02% and gold's return of 70.33% over the same time frame.

Analysts are anticipating more upside for ROST.

Ross Stores continues to benefit from positive customer response for its merchandise across both banners, which has been boosting the comps performance. This led the company to report its fourth consecutive top and bottom-line beat in first-quarter fiscal 2024. Results reflected benefits from higher sales, as well as lower distribution expense, domestic freight and buying expense. Backed by the ongoing sales momentum, Ross Stores remains optimistic its top and bottom-line performance for fiscal 2024. Our model predicts year over year sales growth of 6% for the second-quarter and 4% for fiscal 2024. However, shares of Ross Stores have underperformed the industry in the past year. The company remains cautious about the current macroeconomic and geopolitical uncertainties as well as persistent inflation, which is affecting consumer spending.

The stock has jumped 13.06% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2024; the consensus estimate has moved up as well.

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