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Ross Stores (ROST) Beats Stock Market Upswing: What Investors Need to Know

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Ross Stores (ROST - Free Report) closed the most recent trading day at $147.92, moving +1.31% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.03%.

Shares of the discount retailer have depreciated by 3.62% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.85% and the S&P 500's gain of 0.81%.

The investment community will be paying close attention to the earnings performance of Ross Stores in its upcoming release. The company is predicted to post an EPS of $1.65, indicating a 9.34% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.92 billion, down 1.77% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.17 per share and a revenue of $21.13 billion, representing changes of +10.97% and +3.71%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Ross Stores. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Ross Stores possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Ross Stores currently has a Forward P/E ratio of 23.65. This represents a premium compared to its industry's average Forward P/E of 20.62.

It is also worth noting that ROST currently has a PEG ratio of 2.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry had an average PEG ratio of 2.39 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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