Ross Stores Bounces Back

On Thursday, Ross Stores (ROST) reported what I thought were decent earnings. The guidance was low, but that’s what Ross always does. The numbers shouldn’t have surprised anyone. Yet the shares dropped sharply in the after-hours market. The lowest I saw was that Ross was off 7% after the bell.

This was a little frustrating for me since I always send the newsletter out on Fridays before the opening so I couldn’t see how the market reacted. Ross had a chaotic open on Friday. It surged and plunged. Later in the day, Ross calmed down and the stock actually closed the day higher by a few pennies per share.

This is a good lesson on why it’s important to not get too stressed about short-term moves in the stock market. It’s also why I’m not a fan of stops. Normal market moves can throw you out of a good stock.

Posted by on August 27th, 2018 at 10:55 am


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