Should You Investigate Ross Stores, Inc. (NASDAQ:ROST) At US$152?

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Today we're going to take a look at the well-established Ross Stores, Inc. (NASDAQ:ROST). The company's stock saw a decent share price growth of 11% on the NASDAQGS over the last few months. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Ross Stores’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Ross Stores

Is Ross Stores Still Cheap?

Great news for investors – Ross Stores is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $245.21, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Ross Stores’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Ross Stores generate?

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NasdaqGS:ROST Earnings and Revenue Growth September 30th 2024

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 22% over the next couple of years, the future seems bright for Ross Stores. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since ROST is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ROST for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ROST. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.