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Is Ross Stores (ROST) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Ross Stores (ROST - Free Report) . ROST is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 21.72. This compares to its industry's average Forward P/E of 29.46. Over the last 12 months, ROST's Forward P/E has been as high as 26.70 and as low as 20.04, with a median of 23.34.
ROST is also sporting a PEG ratio of 2.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ROST's PEG compares to its industry's average PEG of 3.28. Over the past 52 weeks, ROST's PEG has been as high as 2.56 and as low as 1.73, with a median of 2.06.
Another notable valuation metric for ROST is its P/B ratio of 9.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 14.96. ROST's P/B has been as high as 10.50 and as low as 8.52, with a median of 9.74, over the past year.
Finally, we should also recognize that ROST has a P/CF ratio of 18.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ROST's current P/CF looks attractive when compared to its industry's average P/CF of 28.88. Within the past 12 months, ROST's P/CF has been as high as 22.71 and as low as 17.60, with a median of 20.17.
These are only a few of the key metrics included in Ross Stores's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ROST looks like an impressive value stock at the moment.
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Is Ross Stores (ROST) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Ross Stores (ROST - Free Report) . ROST is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 21.72. This compares to its industry's average Forward P/E of 29.46. Over the last 12 months, ROST's Forward P/E has been as high as 26.70 and as low as 20.04, with a median of 23.34.
ROST is also sporting a PEG ratio of 2.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ROST's PEG compares to its industry's average PEG of 3.28. Over the past 52 weeks, ROST's PEG has been as high as 2.56 and as low as 1.73, with a median of 2.06.
Another notable valuation metric for ROST is its P/B ratio of 9.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 14.96. ROST's P/B has been as high as 10.50 and as low as 8.52, with a median of 9.74, over the past year.
Finally, we should also recognize that ROST has a P/CF ratio of 18.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ROST's current P/CF looks attractive when compared to its industry's average P/CF of 28.88. Within the past 12 months, ROST's P/CF has been as high as 22.71 and as low as 17.60, with a median of 20.17.
These are only a few of the key metrics included in Ross Stores's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ROST looks like an impressive value stock at the moment.