Ross Stores or Burlington Stores: Which Looks Better in 2019?

Ross Stores and Burlington Stores stocks have risen 8.9% and 1.2%, respectively, on a year-to-date basis as of January 14.

Sirisha Bhogaraju - Author
By

Nov. 20 2020, Updated 2:05 p.m. ET

uploads///hanger _

Thriving in a challenging market

Off-price retailers Ross Stores (ROST), Burlington Stores (BURL), and TJX Companies (TJX) have been performing consistently compared to major department stores like Macy’s (M) and JCPenney (JCP). Off-price retailers’ bargains are helping them withstand intense competition in the retail market, especially from online retailers.

Ross Stores and Burlington Stores stocks have risen 8.9% and 1.2%, respectively, on a year-to-date basis as of January 14—compared to the S&P 500 (SPY), which has risen 3.0%.

Article continues below advertisement
Article continues below advertisement

Stock movement in 2018

In 2018, Burlington Stores stock rose 32.2% and outperformed Ross Stores, which rose 3.7%. The S&P 500 declined 6.2% in 2018 due to the US-China trade war and concerns about rising interest rates.

TJX Companies stock rose 17.0% in 2018. Overall, off-price retailers delivered better returns than the SPDR S&P Retail ETF (XRT), which declined 9.3% in 2018.

Aside from stock returns, Ross Stores and TJX Companies also reward investors through dividends. As of January 14, Ross Stores and TJX Companies’ current dividend yield is 1.0% and 1.6%, respectively.

In 2018, Ross Stores increased its quarterly dividend 41% to $0.225 per share. Currently, Burlington Stores doesn’t pay its investors any dividends.

Looking at the recent quarterly results, Ross Stores and Burlington Stores beat analysts’ bottom-line expectations for the third quarter, which ended on November 3. Burlington Stores’ third-quarter sales beat analysts’ estimate, while Ross Stores’ sales were in line with the expectations.

Next, we’ll discuss Ross Stores and Burlington Stores’ sales growth.

Advertisement

Latest Ross Stores Inc News and Updates

    Opt-out of personalized ads

    © Copyright 2024 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.