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Here's Why Ross Stores (ROST) Gained But Lagged the Market Today

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Ross Stores (ROST - Free Report) closed the latest trading day at $147.44, indicating a +0.33% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Shares of the discount retailer witnessed a loss of 3.04% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 8.29% and the S&P 500's gain of 1.7%.

Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.65, showcasing a 9.34% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.92 billion, reflecting a 1.77% fall from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has shifted 0.04% upward. Ross Stores is holding a Zacks Rank of #2 (Buy) right now.

Looking at valuation, Ross Stores is presently trading at a Forward P/E ratio of 22.01. This signifies a premium in comparison to the average Forward P/E of 19.76 for its industry.

Also, we should mention that ROST has a PEG ratio of 2.25. 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 2.11 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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