Leading off-price retailer Ross Stores (ROST Quick QuoteROST - Free Report) is set to report third-quarter earnings results on Thursday after the closing bell. A Zacks Rank #3 (Hold), Ross surpassed the earnings mark in each of the past four quarters. But with markets experiencing volatility lately, is ROST stock a buy ahead of the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting the company to post a profit of $1.40 per share, reflecting negative growth of -5.4% versus the same quarter last year. Sales are projected to have increased 6.7% to $5.4 billion during the quarter.

Ross Stores delivered a trailing four-quarter average earnings surprise of 5.1%. The discount retailer continues to draw value-conscious shoppers with competitive bargains.

Yet margin compression remains a key concern amid tariff pressures and higher expenses. ROST shares are up roughly 7% year-to-date and are underperforming the major indexes. Investors would be wise to exercise caution ahead of the upcoming announcement.