- Ross Stores has benefited tremendously from a decline in competition, as well as a growing number of people who make an event out of discount hunting.
- While it has maintained strong growth and financial health for two decades, there are few places left for the company to safely expand its store count.
- Demand for Ross products is likely to remain stable due to its defensive nature, however rising export prices and potential tariffs may cause margins to decline.
- Despite the possible growth slowdown, Ross Stores' valuation before COVID-19 was double that of its long-term levels, signaling potential overexuberance among investors.
For further details see:
Ross Stores: This COVID-19 Recovery Trade Is Probably Best Avoided