Why Ross Stores Is Poised to Bounce Back

Brian Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, off-price apparel and home fashion retailer Ross Stores has earned a respected four-star ranking.

With that in mind, let's take a closer look at Ross Stores and see what CAPS investors are saying about the stock right now.

Ross Storesfacts

Headquarters (founded)

Pleasanton, Calif. (1957)

Market Cap

$13.1 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$9.7 billion

Management

CEO Michael Balmuth

COO Michael O'Sullivan

Return on Equity (average, past 3 years)

46.5%

Cash/Debt

$647.9 million/$150.0 million

Dividend Yield

1.1%

Competitors

Kohl's

TJX Companies

Wal-Mart Stores


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 427 members who have rated Ross Stores believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, JMacSol, succinctly summed up the Ross Stores bull case for our community:

Buying on the recent pullback. Low leverage. Safe dividend (probably growing, given the size of the cash balance). So much more room for growth in revenues (high y/o/y EBIT growth and OCF, relative to peers).

To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Ross Stores Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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