If you are looking for a bargain in the Retail Sector Ross Stores (NASDAQ:ROST) is not it but it is a relatively safe dividend payer that also buys back shares.
If you are looking for a bargain in the Retail Sector Ross Stores (NASDAQ:ROST) is not it but it is a relatively safe dividend payer that also buys back shares. The stock trades at roughly 21.5X its earnings estimates which put it in line with peers like The TJX Companies (NYSE:TJX) and sector favorites like Walmart (NYSE:WMT) and Target (NYSE:TGT). The valuation, high relative to the broad market S&P 500, is deserved however because Ross Stores is a well-run, blue-chip quality, dividend-growing off-price retailer in a good position for the times. There are near-term headwinds impacting results and the outlook but those will aid the company over the long term. Inventories are bloating across the retail universe and that means bargains galore for Ross Stores and its inflation-afflicted clientele.
