Ross Stores Inc.
) is set to report second-quarter fiscal 2014 results on Aug 21,
2014. Last quarter, it posted negative earnings surprise of 0.9%.
Let us see how things are developing for this announcement.
Factors Affecting this Quarter
Uncertain economic scenario and a distressed retail market are
likely to affect the company's second-quarter performance.
Management, during last earnings release, had guided to a comps
growth of 1%-2% in the second quarter, as against 4% and 7% growth
in the comparable quarters of 2013 and 2012, respectively. Sales
are expected to improve 5%-6%, as against 9% in the second quarter
of fiscal 2013.
Our proven model does not conclusively project Ross Stores as
likely to beat earnings this quarter. This is because a stock needs
to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
ESP for Ross Stores is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stand at $1.09
Ross Stores carries a Zacks Rank #3 (Hold) which increases the
predictive power of ESP. However, we need to have a positive ESP to
be confident of an earnings surprise call. We caution against
stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an
earnings announcement, especially when the company is witnessing
negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these to have the right combination of elements to post an
Abercrombie & Fitch Co. (
) has an Earnings ESP of +10.00% and a Zacks Rank #2 (Buy).
Zoe's Kitchen, Inc. (
) has an Earnings ESP of +50.00% and a Zacks Rank #2.
Dollar Tree, Inc. (
) has an Earnings ESP of +7.69% and a Zacks Rank #3.
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