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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 $137.17, moving +1.04% from the previous trading session. This change outpaced the S&P 500's 0.78% gain on the day. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 0.61%.

Prior to today's trading, shares of the discount retailer had gained 5.79% outpaced the Retail-Wholesale sector's gain of 5.49% and lagged the S&P 500's gain of 5.88%.

The upcoming earnings release of Ross Stores will be of great interest to investors. The company's upcoming EPS is projected at $1.54, signifying a 3.14% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.53 billion, indicating a 4.68% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.23 per share and a revenue of $21.99 billion, representing changes of -1.42% and +4.07%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ross Stores. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% higher. Ross Stores is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Ross Stores is currently trading at a Forward P/E ratio of 21.78. This expresses a premium compared to the average Forward P/E of 21.76 of its industry.

It's also important to note that ROST currently trades at a PEG ratio of 2.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 2.69 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 171, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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