Portfolio Manager Roger Vogel of Silvercrest Asset Management Group continues to hold Ross Stores, Inc. (ROST), as he believes the stock is deeply undervalued and expects ROST to grow both its store base and same-store sales.
“When we look at Ross, we think it should be able to continue to grow the store base perhaps in the mid-high single digits over time. Hopefully, Ross will also have some same-store sales growth to enable an earnings CAGR in the low-mid double digits over our forecasted time period, four years from now,” Vogel said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
With an approximate 12% earnings CAGR and targeting a valuation at the current market multiple, Vogel believes Ross’ stock is deeply undervalued, and as a value investor he is used to the ebbs and flows that may come with investing in retail.
“There will be times, like now, when the retailing environment is not particularly robust, so Ross’ last couple of recently reported quarters have been somewhat mediocre,” Vogel said. “As long as we think the basic model is intact, we believe there will be periods where Ross will show stronger same-store sales growth, and investors will become more excited with the name.”
The TJX Companies (TJX) and Ross Stores, Inc. (ROST) Hold Long-Term Appeal with Domestic and International Growth
July 08, 2013
Cracker Barrel Old Country Store (CBRL) Grows Earnings Per Share; Better Same-Store Sales Than Industry
July 12, 2013
Michael Kors Holdings Ltd (KORS) Outperforms Expectations, Shows Consistent Same-Store Sales Growth
March 17, 2014
Tribune Company (TRBAA) Emerges Stronger and Still Undervalued from Bankruptcy
January 22, 2014
CarMax, Inc’s (KMX) Same-Store Sales Could be Down to 4% This Year
June 26, 2015
