Conservative Stocks Lead the Charge as the Stock Market Rises

After a putrid performace last week, the stock market started this week off with a solid day of gains.

Today, Monday May 23, 2022, the S&P 500 rose a lodest 1.9% to close at 3974. The NASDAQ composite increased 1.6% on the day to close at 11535.

Among the gainers, conservative stocks lead the advance. 32 of the 36 stocks in our Conservative Stock Portfolio rose on the day, including:

Ross Stores fell from $93 to $72 on Friday after the company misses earnings estimates.

  • Ross Stores (ROST) reports earnings:
  • Reported: $0.91 vs. $1.34 = -32%
  • Estimates: $0.99 vs. $1.34 = -26%
  • Revenue: +4%
  • Same Store Sales: -7%

Chart of the Day

Our chart of the day is this ten0year chart of ROST as of last qtr. I need to let the dust settle before updating analyst estimates.

Ross was $92 when this chart was done on March 17. Shares closed at $79 today.

Notice last summer the stock was above $125 as people spent their stimulus checks on clothes. ROST has been a long term winner. This year, the company faces tougher comparisons.

Management is also dealing with higher shipping costs and higher labor expenses. Both of those should simmer down later this year as China production ramps up and people get laid off through the recession (layoffs have already begun).

I think the retail stocks provide the best bang-for-the-buck in the market today.

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