$ROST can gap up today
Earnings trading strategy signal.
The US off-price retail apparel and home fashion stores operator Ross Stores has been increasing sales (from $11.04 bln in 2015 to $14.98 in 2019) and EPS (earnings per share: from 2.24 to 4.3) for 4 years straight.
The last two of four published
ROST ratings from analyst companies were good, one was neutral.
So the price is more predetermined to rise than fall.
The Zacks Consensus Estimate for EPS is $1.26, (+5% year-over-year change), for revenue — $4.37 billion (+6.4% from the year-ago quarter) — finance.yahoo.com/news/factors-setting-tone-ross-stores-132701440.html
Previous earnings report beats EPS and revenue estimates.
I suppose this earnings report will also be with such a pleasant surprise.
Also, confident EPS and sales growth are positive factors, which can cause today`s gap up.
So we hypothesize thatROST is ready for the next gap up after publishing earnings report today after market close.
The last three days show the bearish market probably ends.
So we can long stocks before earnings again.
Due to strategy, the buy long can be from the price 10 minutes before market close.
It is too risky to buy now due to huge ATR.
target profit — +$5 per share;
stop-loss — -$5 per share.
Risk/reward is 1:1, but correct strategy implementation implies more than 60% of profit trades.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
The US off-price retail apparel and home fashion stores operator Ross Stores has been increasing sales (from $11.04 bln in 2015 to $14.98 in 2019) and EPS (earnings per share: from 2.24 to 4.3) for 4 years straight.
The last two of four published
ROST ratings from analyst companies were good, one was neutral.So the price is more predetermined to rise than fall.
The Zacks Consensus Estimate for EPS is $1.26, (+5% year-over-year change), for revenue — $4.37 billion (+6.4% from the year-ago quarter) — finance.yahoo.com/news/factors-setting-tone-ross-stores-132701440.html
Previous earnings report beats EPS and revenue estimates.
I suppose this earnings report will also be with such a pleasant surprise.
Also, confident EPS and sales growth are positive factors, which can cause today`s gap up.
So we hypothesize that
ROST is ready for the next gap up after publishing earnings report today after market close. The last three days show the bearish market probably ends.
So we can long stocks before earnings again.
Due to strategy, the buy long can be from the price 10 minutes before market close.
It is too risky to buy now due to huge ATR.
target profit — +$5 per share;
stop-loss — -$5 per share.
Risk/reward is 1:1, but correct strategy implementation implies more than 60% of profit trades.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
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