Second $ROST entry on bullish confirmation!

8 Des

Key Stats:

• Market Cap:51.9B
• P/E Ratio: 24.65 (sector average ~22.5)
  
• Free Cash Flow:1.6B TTM
  
• Next Earnings Date: March 4, 2025
  

Technical Reasons Supporting an Increase:

• Ascending Channel Formation: ROST continues to trend upward within a well-defined ascending channel, targeting the upper band near $190.
  
• Key Moving Averages Bullish Crossover: The 50-day SMA just crossed above the 200-day SMA—hello, golden cross.
  
• RSI Momentum Breakout: RSI (14) remains at a healthy 62, suggesting bullish momentum without overbought conditions.
  

Fundamental Reasons Supporting an Increase:

• Strong Q3 Earnings Beat: Revenue up 8% YoY with EPS growth of 12% (Q3 FY24). Management raised FY guidance, reinforcing investor confidence.
  
• Off-Price Retail Resilience: Amid inflationary pressures, ROST’s model thrives by offering value-conscious customers an edge.
  
• Expansion Plans On Track: 100 new stores planned by 2025, creating a pathway for revenue growth and broader market penetration.
  

Potential Paths to Profit:

• Option 1 (Lowest Risk): Buy shares outright and hold.
  
• Option 2 (Moderate Risk): Buy LEAP calls for potential returns based on implied move calculations.
  

Disclaimer:
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