Wells Fargo and Morgan Stanley both call ROST “overweight”
Shares of Ross Stores, Inc. (NASDAQ: ROST) are up 4.4% to trade at $91.00 this morning after Wells Fargo upgrade discount retailer to “overweight” from “equal weight”. The coverage analyst called ROST one of the “best ways” to get into off-price retail. Additionally, Morgan Stanley issued a price target hike to $119 and retained its “overweight” rating, suggesting that earnings opportunities for 2023 are underestimated.
On the charts, ROST is expected to clear its 200-day moving average on a closing basis for only the third time in 2022. Despite today’s gains and a 16% rally over the past three months, stocks remain down 20% year over year. Date.
Options traders remain bullish on ROST, according to the 10-day buy/sell volume ratio of 3.18 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) , which is over 96% of past year readings. This suggests that calls are outpacing puts on an aggregate basis and have rarely been picked up at a faster rate than in the previous 12 months.
Ross Stores inventory Schaeffer Volatility Dashboard (SVS) ranks at a relatively high 76 out of 100. This means the stock has exceeded options traders’ volatility expectations over the past year, making now an intriguing time to speculate with options.