Kerry,
I spent quite a bit of time reviewing the info. Very interesting. "rost" looks very good: 1) an excellent p/e to growth rate, 2) an excellent balance sheet ($0 debt), 3) a stock buyback in effect, and 4) a good summary - very positive!
My only concern, for all retailers, would be the increasing wage costs which could cut into those profits ("rost"'s profit margin has been increasing slightly to over 6%), but what happens if wages increase just a little too fast? Only playing devil's advocate. The stock is priced so reasonably that most of the risk is out of the stock.
Excellent pick. Low risk, with a lot of potential for return.
Would you eliminate Carnival (or any stock) because the timeliness is a 4? I know that you eliminate the 4/5 in your screening process, but how about now - based upon your prior analysis of the industry and companies.
One thing that Value Line can't forecast is the degree to which companies, in strong sectors, will beat their estimates. Factoring in the handily beating of the estimates can really change things up. I own some "jdsu", "glw" and "sndk" - which have very high growth rates, and they both typically handily beat their estimates. I hate to be left out of these types of scenarios!
Very impressive screening tool. Thanks Kerry. |
