Ross Stores Inc.
), a chain of off-price retail apparel and home accessories
stores, to beat expectations when it reports second-quarter
fiscal 2013 results on Aug 22.
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ROSS STORES (ROST): Free Stock Analysis
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Why a Likely Positive Surprise?
Our proven model shows that Ross Stores may beat the earnings
because it has the right combination of two key components.
Positive Zacks ESP:
Ross Stores currently has Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.08%. This is because the Most Accurate Estimate stands at
94 cents per share, while the Zacks Consensus Estimate is pegged
at 93 cents.
Zacks #2 Rank (Buy):
Note that stocks with a Zacks Rank #1, 2 and 3 have higher
chances of beating the earnings estimate. The Sell rated stocks
(#4 and 5) should never be considered going into an earnings
The combination of Ross Stores' Zacks Rank #2 (Buy) and Earnings
ESP of +1.08% makes us confident of a positive earnings beat on
What is Driving the Better-than-Expected
Ross Stores sustained focus on top-line growth and profitability
through strategic expansion in the most productive, existing
markets, and full implementation of micro-merchandising tools,
bodes well for the future. Going forward, the company remains
committed to new store growth and maximizing shareholder value as
the company boasts of a strong balance sheet.
Further, effective inventory management and strategic investments
in merchandize organization will enhance the company's long-term
prospects for future growth and profitability.
Other Stocks to Consider
Ross Stores is not the only firm looking up this earnings season.
The following companies are also likely to beat the earnings
estimates in the to-be-reported quarter:
Citi Trends, Inc.
), Earnings ESP of +2.33% and a Zacks Rank #2 (Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #3 (Hold).
), Earnings ESP of +4.17% and a Zacks Rank #3 (Hold).