Ross Stores: SSS Growth Should Accelerate, But Share Price Upside Is Still Limited
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Ross Stores reported modest net sales growth and gross margin expansion in 3Q24, but same-store sales growth decelerated due to weather impacts. Management raised FY24 EPS guidance and expects SSS growth to accelerate in 4Q24. Despite a positive outlook and a new CEO, the current valuation limits share price upside.
November 26, 2024 | 4:45 am
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Ross Stores reported modest net sales growth and gross margin expansion in 3Q24, but same-store sales growth decelerated due to weather impacts. Management raised FY24 EPS guidance and expects SSS growth to accelerate in 4Q24. Despite a positive outlook and a new CEO, the current valuation limits share price upside.
The news highlights both positive and negative aspects for Ross Stores. While there is an expectation of accelerated SSS growth and raised EPS guidance, the deceleration in same-store sales and current valuation limit the potential for share price increase. The hold rating suggests a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100