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Here's Why Ross Stores (ROST) Fell More Than Broader Market

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Ross Stores (ROST - Free Report) closed the most recent trading day at $136.54, moving -1.4% from the previous trading session. This change lagged the S&P 500's 0.37% loss on the day. Meanwhile, the Dow lost 0.74%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Coming into today, shares of the discount retailer had gained 5.29% in the past month. In that same time, the Retail-Wholesale sector gained 2.03%, while the S&P 500 gained 2.68%.

The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. In that report, analysts expect Ross Stores to post earnings of $1.53 per share. This would mark a year-over-year decline of 3.77%. Simultaneously, our latest consensus estimate expects the revenue to be $5.52 billion, showing a 4.48% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.23 per share and a revenue of $21.96 billion, indicating changes of -1.42% and +3.93%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Ross Stores. 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 business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% increase. Ross Stores is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Ross Stores currently has a Forward P/E ratio of 22.22. This valuation marks a premium compared to its industry average Forward P/E of 22.04.

It is also worth noting that ROST currently has a PEG ratio of 2.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.65 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 32% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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