Posted on November 28, 2022
We’re talking about Ross Stores today (NASDAQ:ROST), the discount specialists with 2000 outlets scattered across the land.
Because the stock has been climbing even as people stopped spending.
Ross operates predominantly in the apparel space, and yes, we all need clothes. But when a bricks and mortar retailer climbs by nearly 70% inside five months (44% in just over 30 days) because of an earnings beat based on declining expectations, you gotta stop and wonder.
More than that, the stock posted its best-ever two week gain in company history—and that in the midst of one of the worst consumer spending environments of the last decade.
Let’s look at the fundamentals.
And they have the chutzpah to call it an ‘earnings beat’.
Of course, everyone is expecting the world over the next twelve months; that’s the job of corporations and the analysts who follow them.
But we’re not buying it.
As far as we’re concerned, this sucker’s ready for the hamper.
With kind regards,
Hugh L. O’Haynew