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Ross Stores shares dip ending three-day rally as market falls

EditorHari Govind
Published 06/12/2023, 02:48
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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NEW YORK - Shares of Ross Stores Inc (NASDAQ:ROST). experienced a slight decline on Tuesday, ending a three-day streak of gains against the backdrop of a broader market downturn. The discount retailer's stock closed at $132.24, down by 0.31% from its previous session.

The downward movement in Ross Stores' share price came as the general market also saw declines, with the S&P 500 index falling to 4,567.18 and the Dow Jones Industrial Average dropping to 36,124.56. This shift in market sentiment affected various stocks across the board.

Despite Ross Stores' slight setback, e-commerce giant Amazon (NASDAQ:AMZN) saw its shares climb to $146.88. On the other hand, fellow retail competitors such as Target and TJX Companies (NYSE:TJX) faced reductions in their share prices, closing at $132.88 and $88 respectively.

Notably, trading activity for Ross Stores was quieter than usual, with approximately 1.7 million shares changing hands which is below the company's 50-day average trading volume. This lighter trading volume could suggest less investor enthusiasm on that particular day or simply a reflection of the overall market's subdued activity.

The retail sector often experiences fluctuations based on consumer trends, economic indicators, and competitive dynamics, making stock movements like those seen in Ross Stores and its peers a common occurrence in the market.

InvestingPro Insights

While Ross Stores Inc. navigated a minor pullback in its stock price, the company's financial health and market position, as reflected in recent InvestingPro metrics, may be indicative of underlying strength. As of the last twelve months leading up to Q3 2024, Ross Stores boasts a solid market capitalization of $44.78 billion, with a Price/Earnings (P/E) ratio standing at 26.05. This valuation is underscored by a revenue growth of 5.76%, signaling an acceleration in the company's earnings capability.

InvestingPro Tips reveal that Ross Stores has not only raised its dividend for three consecutive years but also maintains a high return on assets, which, at 12.51%, showcases the company's efficacy in utilizing its asset base to generate profits. Additionally, the company's stock is trading near its 52-week high, at 98.93% of the peak value, reflecting investor confidence and market recognition of the firm's performance.

For investors seeking more comprehensive analysis and insights, InvestingPro offers a suite of additional tips—17 in total for Ross Stores—which can be accessed through the InvestingPro platform. As part of a special Cyber Monday promotion, subscriptions are available at up to 60% off, and by using the coupon code sfy23, an extra 10% discount can be applied to a 2-year InvestingPro+ subscription. This is an opportune moment for investors to leverage these resources to inform their investment decisions regarding Ross Stores and other potential investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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