Discount retailer Ross Stores, Inc. reports earnings after the closing bell on Tuesday, March 6, with the stock above a “golden cross” since Nov. 3, when it closed at $63.48. The shares are trading at my quarterly pivot of $78.00 and just below my semiannual pivot of $78.79. They closed Monday, March 5, at $77.98, down 2.8% year to date and down 9% from a Jan. 29 high of $85.66. The stock is 5.4% above its Feb. 9 low of $74.00.
Analysts expect Ross Stores to report earnings per share of 93 cents. The stock had a positive reaction to its previous earnings report released on Nov. 16, gapping higher on Nov. 17. Investors could have captured this gain, as the stock had a “golden cross” on its daily chart on Nov. 3. Zacks Equity Research believes that Ross Stores is poised for another earnings beat. But the daily and weekly charts suggest that a bullish outlook may not be in the cards. (See also: The Four R’s of Investing in Retail.)
Ross Stores reports earnings with a market-neutral P/E ratio of 25.05 and a puny dividend yield of 0.82%. …read more
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