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Ross Stores (ROST) Outperforms Broader Market: What You Need to Know

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In the latest close session, Ross Stores (ROST - Free Report) was up +1.4% at $151.55. This move outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.44%.

The discount retailer's stock has climbed by 0.28% in the past month, falling short of the Retail-Wholesale sector's gain of 0.65% and the S&P 500's gain of 2.72%.

The upcoming earnings release of Ross Stores will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.4, reflecting a 5.41% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.38 billion, indicating a 6.18% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.2 per share and revenue of $22.12 billion. These totals would mark changes of -1.9% and +4.67%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Ross Stores. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. As of now, Ross Stores holds a Zacks Rank of #3 (Hold).

In the context of valuation, Ross Stores is at present trading with a Forward P/E ratio of 24.1. This expresses a premium compared to the average Forward P/E of 22.28 of its industry.

One should further note that ROST currently holds a PEG ratio of 2.87. 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. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.51.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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