|Bid||109.02 x 1100|
|Ask||109.07 x 900|
|Day's Range||108.39 - 109.63|
|52 Week Range||75.91 - 110.88|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||24.80|
|Earnings Date||Nov 21, 2019|
|Forward Dividend & Yield||1.02 (0.94%)|
|1y Target Est||110.76|
The List 4 tariffs sparked concerns for the retail sector and American consumers making everyday goods expensive. Some retailers lowered outlooks for the current year due to the tariff woes.
Ross Stores (ROST) gains from the proven off-price model, merchandising efforts and store expansion plans. But softness in the Ladies category, and tariff-related and other costs are headwinds.
Forbes editor Randall Lane responded to a Twitter backlash against its top-100 list of the most innovative leaders in the United States including only one woman by acknowledging the gender disparity and explaining why the list skewed male. The only woman on the America's Most Innovative Leaders list was Barbara Rentler, CEO of off-price retailer Ross Stores Inc.(Nasdaq: ROST), who was ranked at #75.
CEO of Ross Stores Inc (30-Year Financial, Insider Trades) Barbara Rentler (insider trades) sold 25,000 shares of ROST on 09/05/2019 at an average price of $107.06 a share. Continue reading...
Ross Stores, Inc. (NASDAQ:ROST) stock is about to trade ex-dividend in 4 days time. Investors can purchase shares...
A Houston-based department store operator appears poised to rebrand a Triad store. Negotiations are underway for a Peebles location at Kingsway Plaza, 220 W. Kings Highway in Eden, to close and reopen as another retailer, according to Mike Dougherty, Eden's director of economic development.
In spite of a tough retail landscape, Dollar General (DG) has been thriving, when many other traditional operators are finding it difficult to cope.
Seemingly everywhere you look, there are signs of a recession. The yield curve is inverted. There are negative interest rates everywhere across the globe. The 30-Year Treasury yield is at an all-time low. The U.S.-China trade war is escalating. Manufacturing activity globally is slowing. Corporate insiders are selling stock in bulk. Business confidence is eroding.To be sure, I think a lot of this recession chatter is noise, and that most -- if not all -- of those "indicators" are red herrings. My base case scenario today remains for the U.S. economy to stay in expansion mode for the next 12 months, and for the S&P 500 to grind higher.Still, one cannot ignore all those dour signs, and it may be smart to at least start preparing for the worst. As the old saying goes: prepare for the worst, hope for the best.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the investment world, how does one prepare for a recession? It's simple. Buy safe stocks with a track record of recession resistance.Those stocks are tough to find. Most stocks don't make the cut. Instead, most stocks plunge alongside the market during recessions. But, a few don't, and the few that don't are the ones that should be on your "prepare for the worst" radar. * 10 Stocks to Buy for September Which stocks make the cut? Let's take a look at five safe stocks to buy with recession resistance. Safe Stocks to Buy With Recession Resistance: Walmart (WMT)Alpha Generated in Last Recession: 58%Why: Consumers migrate to discount retailers when money becomes tight.The Thesis: The bull thesis on Walmart (NYSE:WMT) as a safe stock to buy in a recession is pretty simple.Recessions hurt the U.S. consumer -- they don't outright kill U.S. consumption. As such, consumers still shop during recessions because they still need things like food, clothes and other essentials. The only difference in a recession is that they are doing this "essentials" shopping at discount retailers. Walmart is the king of the discount retail segment. Thus, when times get tough, consumers flock to Walmart to save money on their "essentials" shopping.The result? Walmart's numbers can actually improve during a recession, and WMT stock can actually move higher. Just look at the last recession. The S&P 500 peaked in October 2007, and bottomed in November 2009. During that stretch, the index lost about 56.5%. WMT stock gained 1.5% over that same stretch, thereby generating 58 percentage points of alpha over the market during the last recession.Could the same thing happen during the next recession? Yes. And it probably will, given that Walmart has only extended its dominance in the discount retail game. McDonald's (MCD)Alpha Generated in Last Recession: 50%Why: Consumers buy cheap food when money becomes tight.The Thesis: Much like the bull thesis on Walmart, the recession-proof bull thesis on McDonald's (NYSE:MCD) is similarly simple.During recessions, most people keep their jobs -- the unemployment rate jumped to just 10% in the last recession. Wage gains fall flat, but consumers are still making incomes. Thus, in a recession, consumers don't all become unemployed and broke -- instead, most actually remain income-earners. That income just becomes tighter. When it becomes tighter, consumers start to look to cut down their expenses wherever they can.One place to do so is on food. Consumers still have to eat. But, they don't have to eat as expensively. The real world translation? During a recession, McDonald's dollar menu starts to look a lot tastier.That's why McDonald's can actually get a boost during a recession, and why MCD stock can generate tremendous alpha. While the market plunged more than 56% from late 2007 to early 2009, MCD stock fell just 7%. That represents an impressive near 50 percentage points of alpha during the last recession. * 7 Best Tech Stocks to Buy Right Now Will such out-performance happen again? Yes. McDonald's has widened its lead in the discount QSR segment since 2007, and in so doing, it has become an even safer bet during a recession than a decade ago. Planet Fitness (PLNT)Alpha Generated in Last Recession: N/AWhy: Consumers still want to work out, but don't want to spend as much on gym memberships.The Thesis: Although there is no stock performance data to back the recession-proof thesis on Planet Fitness (NASDAQ:PLNT) -- the stock wasn't public during the last recession -- the bull thesis on why this stock should generate big alpha during an economic slowdown is nonetheless compelling.Now, more-so than ever before, consumers want to workout, look good and live a healthy lifestyle. Doing so comes with added costs, such as gym memberships. Those aren't cheap. Gym memberships can cost anywhere from $40 a month, to several hundred dollars per month. But, Planet Fitness offers gym memberships for as low as $10 per month.In an economic slowdown, consumers still want to workout, look good and live a healthy lifestyle. They just want to do it for less. How do they accomplish that? By canceling their 24 Hour or LA Fitness gym memberships and signing up for Planet Fitness.How many people will do this? Not a lot. But, enough to where Planet Fitness' numbers could actually improve during a recession, meaning that PLNT stock could actually move higher against a plunging market. Flowers Foods (FLO)Alpha Generated in Last Recession: 55%Why: Consumers always need to eat, regardless of the economic backdrop.The Thesis: When it comes to Flower Foods (NYSE:FLO), the bull thesis behind why to buy this stock in a recession is very straightforward.Consumers always need to eat. But, during a recession, they become more selective about what they eat. That is, they cut back on the filet mignon, and bulk up on low-cost baked goods. Flower Foods is the second largest producer of packaged baked goods in the country, owning popular brands such as Nature's Own and Wonder Bread. As such, this company actually gets a tailwind when the economy slows, because more consumers pivot into buying their low-cost baked goods.The proof is in the numbers. During the last recession, the market plunged more than 56%. Over the same stretch that the market lost more than half of its value, FLO stock dropped less than a percent. That's right -- less than a percent. At the same time, FLO stock paid shareholders a 2% dividend yield. * 7 Mega-Cap Tech Stocks on a Rebound Now Can this huge out-performance repeat itself during the next recession? I don't see why not. All the fundamentals are the same, and FLO stock has a 3%-plus dividend yield now. Ross Stores (ROST)Alpha Generated in Last Recession: 58%Why: When money becomes tight, consumers stop shopping at full-price retail stores and start shopping at off-price retail stores.The Thesis: When it comes to Ross Stores (NASDAQ:ROST), the bull thesis on why to buy ROST stock during a recession is a slight iteration of the WMT recession-proof bull thesis.That is, during tough economic times, money becomes tight. But, consumers still need to live, so they still need to buy things like food, clothes, so on and so forth. In a recession, they just migrate all that shopping from full-price stores to off-price stores. Ross Stores owns two of those off-price stores -- Ross Dress for Less and dd's Discounts.Those stores did quite well during the last recession. Comparable store sales at Ross Stores rose 1% in 2007, then accelerated to 2% growth in 2008 and 6% growth in 2009. So, not only did Ross Stores hold up during the last recession, the company's growth trajectory actually accelerated -- likely thanks to the aforementioned consumption shift from full-price to off-price.ROST stock reflected this out-performance. From late 2007 to early 2009, while the market shed more than half of its value, ROST stock rose nearly 2%.This same out-performance should repeat come the next recession, mostly because Ross Stores remains one of the very few big brand names in the discount retail segment, and thus, will benefit from the broad full-price to off-price consumption shift.As of this writing, Luke Lango was long WMT, MCD and ROST. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off * 7 'Strong Buy' Stocks to Beat Volatility * 7 Mega-Cap Tech Stocks on a Rebound Now The post 5 Recession Resistant Stocks to Buy for Protection appeared first on InvestorPlace.
Ross Stores (ROST) tops earnings and sales estimates in second-quarter fiscal 2019 on better-than-expected operating margin. However, newly imposed tariffs cloud the company's fiscal 2019 view.
Buy Ross Stores on weakness to its semiannual pivot at $102.56. Earnings guidance was favorable enough for this discount retailer to survive the risk of a 10% tariff on goods from China.
Morgan Stanley put out an interesting note in recent days which broadly outlined a handful of stocks to buy given their robust exposure to SHEconomy tailwinds.If you had to do a double-take there, don't worry. SHEconomy is not a commonly used term in the financial world, or any world for that matter. But, it is a term that you should get comfortable with, and quickly. Understanding the SHEconomy could help you pick winning stocks for the next several years.Broadly speaking, the SHEconomy is the part of the U.S. economy that is driven by women (hence the "SHE"). Morgan Stanley argues that this part of the economy is booming, and driving much more economic growth than the part driven by men. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThey are right. The data here is indisputable (sourced from here and here). There are three big factors at play here: Click to Enlarge * Single women are taking over. The number of single women in the U.S. (never married, divorced or widowed) has grown at a 1.6% compounded annual growth rate since 1990. Single women as a percentage of the total U.S. population, ages 16 and up, has risen from ~23% in the 1990s, to ~24% in the 2000s, to ~25% in the 2010s. * The women workforce is expanding. The number of working women in America, ages 16 and up, has grown at a 1.3% CAGR since 1990, while as a percentage of the total workforce, women have gone from ~43% representation in the 1990s, to ~44% in the 2000s, to ~44.5% in the 2010s. Click to Enlarge * Women's purchasing power is growing. Weekly average earnings for women in the U.S. have grown at a 3% CAGR since 1990 (versus 2.5% for men), while women have gone from earning 30% less than men in the 1990s, to ~25% less in the 2000s, to ~22.5% less in the 2010s.In other words, these are three secular demographic trends that have been in play for nearly three decades. They will remain in play for the next several decades, too, given current societal constructs pushing towards greater gender equality and female empowerment. Click to EnlargeAs such, the SHEconomy will continue to be the "growth" part of the U.S. economy for the foreseeable future, and will provide meaningful tailwinds for companies that female consumers love. * 10 Marijuana Stocks That Could See 100% Gains, If Not More With that in mind, here's a list of eight SHEconomy stocks to buy to play this demographic mega-trend, according to Morgan Stanley. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com One of Morgan Stanley's top SHEconomy stocks to buy is Lululemon (NASDAQ:LULU), and I couldn't agree more with this pick.Anyone who knows the athletic apparel market will tell you that women everywhere are obsessed with Lululemon. Why? It's a fashion statement item in the athletic apparel space. Basically, it's that brand in the athletic apparel space that is the perfect combination of expensive and superior quality to where if you wear it, you're cool.Don't believe me? Believe Piper Jaffray's bi-annual Taking Stock With Teens Survey, which has consistently found over the past several years that Lululemon is one of the -- and often, the single most -- in-demand clothing brand among young female consumers. Or, better yet, believe Lululemon's comparable sales growth rates, which above consistently north of 10% for the past several quarters now.In other words, Lululemon is one of the SHEconomy's most-beloved brands, and the numbers support this. SHEconomy tailwinds should continue to propel Lululemon's revenues and profits higher over the next several years, which should in turn lead to big gains for LULU stock. Nike (NKE)Source: Shutterstock Another one of Morgan Stanley's top SHEconomy picks that I 100% agree with is Nike (NYSE:NKE).Sure, Lululemon is the coolest athletic apparel brand for women. But, Nike is a close second, and Nike is often way more affordable and accessible. Plus, Nike dominates in the athletic performance market, including in the ultra-valuable women's soccer and basketball markets where Lululemon has no presence.More than being a popular brand among women, Nike is a very smart company that understands just how quickly the women's athletic apparel market is growing. That's why they are doubling down on the women's market. * 11 Stocks Under $10 to Buy Now In other words, Nike is not just naturally levered to benefit from SHEconomy expansion, but will doubly benefit from said expansion because management is focused on optimizing the women's opportunity. This combination sets the company up nicely for big revenue and profit growth over the next several years, the sum of which should power NKE stock higher. Ross Stores (ROST)Source: Andriy Blokhin / Shutterstock.com Morgan Stanley thinks the SHEconomy will create sizable tailwinds for discount retailers, and in that group, it names Ross Stores (NASDAQ:ROST) as one of its favorite stocks.I also fully agree with this pick. All consumers love a good discount. Women consumers are no different. Whether they are looking for a last minute dress, want to upgrade their wardrobe on a budget, or are looking for cute, small house decorations, female consumers are constantly finding reasons to visit Ross Stores.The bull thesis on ROST, though, is that this isn't just a girl thing. Guys love Ross, too, whether it be for a last-minute shirt, new shoes or new ties, they also are constantly finding reasons to visit Ross Stores.That's why -- amid the turbulent retail environment that has persisted for most of this decade -- Ross Stores has reported largely positive comparable sales growth with healthy margins and strong profit growth. In response, ROST stock has risen 800% -- yes, 800% -- over the past 10 years.This trend of operational and stock price out-performance will persist. As such, not only is ROST stock a great SHEconomy stock to buy, but it's also a great retail stock to buy. TJX Companies (TJX)Source: Shutterstock In the discount sector, Morgan Stanley thinks that TJX Companies (NYSE:TJX) will similarly benefit from SHEconomy tailwinds over the next several years, and I again fully agree.The bull thesis here is very similar to the bull thesis on ROST. All consumers -- female and male -- love discounts, and are constantly finding excuses to shuffle their way into discount stores like TJX and ROST. On the SHEconomy side, though, TJX has a bigger home furnishings presence than Ross Stores, and this larger home furnishings presence more broadly exposes it to SHEconomy tailwinds over the next several years.So, while I like both ROST and TJX as SHEconomy stocks to buy over the next several years, I like TJX slightly better for its broader home furnishings exposure. * The 7 Best Long-Term Stocks to Buy for 2019 and Beyond Much like ROST, TJX has reported largely positive comparable sales growth for several years, alongside healthy margins and big profit growth. This has led to strong stock price performance, with TJX stock up over 500% over the past decade. All of these dynamics will persist -- big revenue growth, big profit growth and big share price gains -- meaning TJX stock is a great stock to buy and hold for the long run. Ulta (ULTA)Source: Shutterstock What would this list be without including beauty retail giant Ulta (NASDAQ:ULTA)?Perhaps one of the more obvious choices on this list, Ulta is naturally set to benefit from SHEconomy tailwinds because what they sell -- cosmetics -- is exactly what women spend a ton of money on. Indeed, according to a Groupon survey, women spend about 25% more than men on beauty products and services.Also helping Ulta is the fact that an overwhelming majority of its consumers skew young, meaning that these are the consumers who are going to be earning incomes (and spending money) for a lot longer. Ulta seems supported by multiple favorable demographic trends, all of which seem to have long runways.Given these circumstances, Ulta looks positioned to grow revenue and profits at a fairly robust rate for the foreseeable future. At 25-times forward earnings, ULTA stock is priced for some of this growth -- but not all of it. As such, this stock has compelling multi-year upside from current levels. Chipotle (CMG)Source: Shutterstock Morgan Stanley included two restaurant stocks in its list of SHEconomy stocks to buy. The first of those restaurant stocks is Chipotle (NYSE:CMG).I get the thesis here. Consumers are increasingly obsessed with eating healthy, especially female consumers. Chipotle dominates in the restaurant overlap of healthy and affordable. As such, the company has ample exposure to SHEconomy tailwinds over the next few years and those tailwinds -- coupled with other tailwinds, like digital business expansion, new menu innovations and unique marketing campaigns -- should drive robust revenue and profit growth, the sum of which should propel CMG stock higher.That all makes sense. But, that thesis misses the biggest point about CMG stock: it is the most richly valued restaurant stock out there. The stock trades at over 60x forward earnings. That's right. With CMG stock, you have a restaurant stock trading at more than three times the S&P 500 index forward earnings multiple.Sure, bulls will argue that the premium valuation is warranted by big profit growth potential, which is powered by strong comps and a huge recovery in margins. I understand that. I also understand that analysts are modeling for ~20% EPS growth in the long run and that lines up with my modeling, too. A 60x forward earnings multiple for about 20% EPS growth just seems like too much. * 7 Internet of Things Stocks to Buy Now As such, while I get the qualitative SHEconomy bull thesis here, I don't think the numbers add up. Starbucks (SBUX)Source: Natee Meepian / Shutterstock.com The second SHEconomy restaurant stock Morgan Stanley recommends to buy is Starbucks (NASDAQ:SBUX). But, much like CMG stock, I don't agree with a "Buy" rating on SBUX stock.Here's the thing with Starbucks: They are caught between a rock and a hard place long term. Right now, they dominate the retail coffee game, and they do so at high prices. That's rare. Normally, consumer-facing markets have the market share leaders (which have big market shares because of their low prices) and the premium players (which have small market shares because of their high prices). Think groceries, with Kroger (NYSE:KR) versus Whole Foods. Or think fast food, with McDonald's (NYSE:MCD) versus Shake Shack (NYSE:SHAK).The coffee retail market is an exception to this trend. For now. Over time, it will start to look like all those other markets. Indie coffee shops will enter at premium price points and dominate the high-end of the market. Fast casual chains like McDonald's will expand their breakfast offerings and dominate the low-end of the market. In that world, where is Starbucks? Somewhere in the middle -- and I'm not convinced the middle ground will be as big as everyone seems to think it will be.As such, the current 35-times forward earnings multiple on SBUX stock seems way too high to me. I don't see this company as much more than a 10-15% profit grower in the long run. That's pretty much the market-average EPS growth rate, and the market trades at 15x, not 35x, forward earnings. Tesla (TSLA)Source: Vitaliy Karimov / Shutterstock.com Last, but not least, on Morgan Stanley's list of SHEconomy picks is premium electric vehicle manufacturer Tesla (NASDAQ:TSLA).I agree with this pick. But not for the SHEconomy demographic tailwinds. Rather, for the Generation Z demographic tailwinds. In the Generation Z demographic, the most talked about, popular, and relevant car brand is Tesla -- and it's not close. According to TotalSocial data, teens are talking about car brands less and less on social media, with one notable exception -- Tesla, whose daily social mentions rose more than 100% from 2013 to 2018.Tesla is the car brand of choice for most young consumers. That's important, because those young consumers are in the process of growing up. Soon, they'll be earning steady incomes, which will give them enough purchasing power to buy their own car. When they do that, chances are pretty high they will buy a Tesla, given their infatuation with the brand relative to other auto brands. * 7 Retail Stocks to Buy on the Dip Net net, Tesla seems poised to benefit from demographic tailwinds which will increase the company's market share in the auto market dramatically. As that happens, revenues, profits, and the stock price will all move higher in the long run.As of this writing, Luke Lango was long LULU, NKE, TJX, KR, MCD and TSLA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post 8 SHEconomy Stocks Morgan Stanley Says to Buy appeared first on InvestorPlace.
Ross executives say looming plans by the Trump administration to slap 10% tariffs on apparel and footwear made in China have forced the chain to update its earnings guidance for the remainder of the year.