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Ross Stores (ROST) Dips More Than Broader Markets: What You Should Know

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Ross Stores (ROST - Free Report) closed at $82.93 in the latest trading session, marking a -1.79% move from the prior day. This change lagged the S&P 500's 1.03% loss on the day. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq added 0.02%.

Heading into today, shares of the discount retailer had lost 3.23% over the past month, outpacing the Retail-Wholesale sector's loss of 10.27% and the S&P 500's loss of 10.4% in that time.

Wall Street will be looking for positivity from Ross Stores as it approaches its next earnings report date. On that day, Ross Stores is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 26.61%. Meanwhile, our latest consensus estimate is calling for revenue of $4.36 billion, down 4.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $18.15 billion. These totals would mark changes of -18.07% and -4.07%, respectively, from last year.

Any recent changes to analyst estimates for Ross Stores should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ross Stores is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Ross Stores's current valuation metrics, including its Forward P/E ratio of 21.15. Its industry sports an average Forward P/E of 20.9, so we one might conclude that Ross Stores is trading at a premium comparatively.

Meanwhile, ROST's PEG ratio is currently 2.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.01 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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