Ross Stores: 4-Star Stocks Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, off-price apparel and home fashion retailer Ross Stores (Nasdaq: ROST  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Ross Stores and see what CAPS investors are saying about the stock right now.

Ross Stores facts

Headquarters (Founded)

Pleasanton, Calif. (1957)

Market Cap

$12.2 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$9.4 billion

Management

CEO Michael Balmuth
COO Michael O'Sullivan

Return on Equity (Average, Past 3 Years)

46%

Cash/Debt

$625.4 million / $150.0 million

Dividend Yield

1%

Competitors

Kohl's (NYSE: KSS  )
TJX
(NYSE: TJX  )
Wal-Mart Stores
(NYSE: WMT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 402 members who have rated Ross Stores believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, EVplusEV, tapped the stock as a particularly attractive bargain opportunity:

I bought [Ross Stores] back in the summer when it traded at 15x estimates with a share price of $60. ... We are near 15x again, only this time I believe the situation is a better value [because] the stock has been hammered recently despite excellent same store comps. I believe the price action has been caused by profit taking in light of fiscal cliff (capital gains) worries. We are coming into the holiday season and there are more bargain hunters in the current economy, which will help [Ross Stores] greatly.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Ross Stores may not be your top choice.

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