Stock Price Trends

Ross Stores Inc (ROST)

Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 31.09% per annum.
  • ROST price at the close of November 20, 2024 was $139.32 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 33.92% per annum.
  • ROST price at the close of November 20, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of ROST price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: May 10, 2022
End date: October 25, 2024

a = 3.7331

b = 0.0007

s = 0.0785

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 31.09%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0785) – 1
= 36.89%

May 10, 2022 calculations

Top border of price channel:

Exp(Y620)
= Exp(a + b × X620 + 2 × s)
= Exp(a + b × 901 + 2 × s)
= Exp(3.7331 + 0.0007 × 901 + 2 × 0.0785)
= Exp(4.5584)
= $95.44

Bottom border of price channel:

Exp(Y620)
= Exp(a + b × X620 – 2 × s)
= Exp(a + b × 901 – 2 × s)
= Exp(3.7331 + 0.0007 × 901 – 2 × 0.0785)
= Exp(4.2444)
= $69.71

October 25, 2024 calculations

Top border of price channel:

Exp(Y1,239)
= Exp(a + b × X1,239 + 2 × s)
= Exp(a + b × 1,800 + 2 × s)
= Exp(3.7331 + 0.0007 × 1,800 + 2 × 0.0785)
= Exp(5.2253)
= $185.91

Bottom border of price channel:

Exp(Y1,239)
= Exp(a + b × X1,239 – 2 × s)
= Exp(a + b × 1,800 – 2 × s)
= Exp(3.7331 + 0.0007 × 1,800 – 2 × 0.0785)
= Exp(4.9112)
= $135.81

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 31.09% per annum.
  • ROST price at the close of November 20, 2024 was $139.32 and was inside the primary price channel.

Secondary Trend

Start date: August 21, 2024
End date: November 20, 2024

a = 7.0113

b = -0.0011

s = 0.0180

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0011) – 1
= -33.92%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0180) – 1
= 7.47%

August 21, 2024 calculations

Top border of price channel:

Exp(Y1,193)
= Exp(a + b × X1,193 + 2 × s)
= Exp(a + b × 1,735 + 2 × s)
= Exp(7.0113 + -0.0011 × 1,735 + 2 × 0.0180)
= Exp(5.0778)
= $160.42

Bottom border of price channel:

Exp(Y1,193)
= Exp(a + b × X1,193 – 2 × s)
= Exp(a + b × 1,735 – 2 × s)
= Exp(7.0113 + -0.0011 × 1,735 – 2 × 0.0180)
= Exp(5.0058)
= $149.28

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(7.0113 + -0.0011 × 1,826 + 2 × 0.0180)
= Exp(4.9745)
= $144.68

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.0113 + -0.0011 × 1,826 – 2 × 0.0180)
= Exp(4.9025)
= $134.63

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 33.92% per annum.
  • ROST price at the close of November 20, 2024 was inside the secondary price channel.