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Is this Large Market Cap Stock target price reasonable for Ross Stores Inc. (NASDAQ:ROST)?

The company in question is, Ross Stores Inc. (NASDAQ:ROST) currently with a stock price of 63.41 (-0.72% today). The market cap for Ross Stores Inc. is 24956.15, and is in the sector Services, and Apparel Stores industry. The target price for Ross Stores Inc. is 66.36. Currently Ross Stores Inc. is trading with a P/E of 24.84, and a forward P/E of 20.74. Average volume for Ross Stores Inc. is 2880.94 and so far today it is 3489400.

Performance in the last year for Ross Stores Inc. has been 30.84%. For EPS growth, Ross Stores Inc. has seen a growth of 13.50%, and is looking to grow in the next year to 11.36%. More long term stats show that EPS growth has been 16.80% over the last five years and could be 11.58% for the next five years. Ross Stores Inc. has seen sales growth quarter over quarter at 7.20%, with EPS growth quarter over quarter at 12.20%. The 20-day simple moving average is 7.12%, with the 200-day simple moving average coming to 13.88%.

Since the IPO date for Ross Stores Inc. on the 7/9/1986, Ross Stores Inc. has seen performance year to date to be 18.42%. With Ross Stores Inc. trading at 63.41, the dividend yield is 0.85%, and the EPS is 2.55.

So could Ross Stores Inc., be undervalued? Well as said before P/E is 24.84. The PEG is 2.15, P/S is 2.06 and the P/B is at 9.55. The P/cash is 26.87, with P/free cash flow at 25.19.

Ross Stores Inc. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 0.7. This is with long term debt/equity at 0.15, and total debt/equity at 0.15.

In terms of margins, Ross Stores Inc. has a gross margin of 28.20%, an operating margin of 13.90% and a profit margin of 8.70%.Payout ratio for Ross Stores Inc. is 19.00%. Return on assets come to 21.00% with return on investment coming to 36.00%.

Insider ownership for Ross Stores Inc., is at 0.60% and institutional ownership comes to 93.10%. Outstanding shares are at 393.57. While shares float is 390.77. The float short is currently 2.82%, and short ratio is 3.83.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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