The broader equity markets stumbled midweek after a relatively healthy start as oil prices surged following repeated attacks by Iran and the Tehran-backed Houthi militant group and retaliation by the United States. With the safe passage for commercial vessels in the Strait of Hormuz becoming a thing of the distant past, Brent crude prices soared beyond $100. As the U.S. President threatened to launch a “massive attack” against Iran, investors remained jittery, with the stock market bearing the brunt.
The renewed hostilities in the Middle East prompted investors to reassess the geopolitical risks and embrace the idea of market volatility as the new normal, as a lasting U.S.-Iran agreement appears to be far from guaranteed. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc. (ROST - Free Report) , Arista Networks, Inc. (ANET - Free Report) , Broadcom Inc. (AVGO - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and AMETEK, Inc. (AME - Free Report) are some of the stocks with high ROE to profit from.
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow less than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of assets, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 14 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 11.5% and delivered a trailing four-quarter earnings surprise of 10.2%, on average. Ross carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
The company has a long-term earnings growth expectation of 19.9%. It delivered a trailing four-quarter earnings surprise of 8.3%, on average. Arista carries a Zacks Rank #2.
Broadcom: Headquartered in San Jose, CA, Broadcom develops a broad range of semiconductor solutions for enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
The company has a long-term earnings growth expectation of 51.2%. It delivered a trailing four-quarter earnings surprise of 2.2%, on average. Broadcom currently carries a Zacks Rank #2.
Host Hotels: Bethesda, MD-based Host Hotels, one of the leading lodging real estate investment trusts (REITs), engages in the ownership, acquisition and redevelopment of luxury and upper-upscale hotels in the United States and abroad. Its properties are positioned mainly in growing markets in the United States and globally and include premium brands, such as Marriott, Westin, Ritz-Carlton, Hyatt, Sheraton, W, St. Regis, The Luxury Collection, Fairmont, Four Seasons, Swissôtel, ibis, 1 Hotels, Novotel and Hilton.
Host Hotels delivered a trailing four-quarter earnings surprise of 8.7%, on average. Host Hotels carries a Zacks Rank #2.
AMETEK: Located in Berwyn, PA, AMETEK is one of the leading manufacturers of electronic appliances and electromechanical devices. It has more than 120 operating sites worldwide. The company operates more than 80 sales and service stations in North America, Europe, Asia and South America to support these operations.
The company has a long-term earnings growth expectation of 8.8%. It delivered a trailing four-quarter earnings surprise of 5.2%, on average. AMETEK carries a Zacks Rank #2.
Ross Stores (ROST - Free Report) closed at $238.21 in the latest trading session, marking a +1.02% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.57%.
Heading into today, shares of the discount retailer had gained 2.95% over the past month, outpacing the Retail-Wholesale sector's gain of 0.45% and the S&P 500's gain of 0.25%.
The investment community will be paying close attention to the earnings performance of Ross Stores in its upcoming release. The company is expected to report EPS of $1.9, up 21.79% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.1 billion, reflecting a 10.36% rise from the equivalent quarter last year.
ROST's full-year Zacks Consensus Estimates are calling for earnings of $7.74 per share and revenue of $25.04 billion. These results would represent year-over-year changes of +17.1% and +10.08%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ross Stores. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Ross Stores currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Ross Stores is presently trading at a Forward P/E ratio of 30.48. This represents a premium compared to its industry average Forward P/E of 30.
We can additionally observe that ROST currently boasts a PEG ratio of 2.65. 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 was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 22, finds itself in the top 9% echelons of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
, /PRNewswire/ -- Ross Stores, Inc. (Nasdaq: ROST) announced the grand opening of 47 new stores nationwide during June and July, including 35 Ross Dress for Less® ("Ross") and 12 dd's DISCOUNTS® locations across 15 states and territories. With these new openings, the Company is on track to open approximately 110 stores this year.
"Each new opening allows us to deliver compelling value to even more customers while creating new jobs and making a positive impact in the local communities," said Richard Lietz, Executive Vice President, Property Development. "Building on the strong new store performance in 2025 and the Spring openings this year, we are excited to grow Ross Dress for Less' store base in Puerto Rico, New York, and Michigan while also continuing to deepen our presence in key Sunbelt states. For dd's, we are also pleased to expand within our existing markets in California, Florida, North Carolina, and Texas."
In connection with these openings, Ross Stores continued its longstanding tradition of community engagement by making donations to local Boys & Girls Clubs or First Book literacy partners, supporting youth development and access to educational resources in the neighborhoods it serves.
"Looking ahead, we see attractive opportunities as off‑price continues to grow, and we are well positioned to capitalize on them," said Mr. Leitz.
For more information on these new openings, please visit Ross Dress for Less Grand Openings and dd's DISCOUNTS Grand Openings.
About Ross Stores, Inc.
Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2025 revenues of $22.8 billion. Currently, the Company operates Ross Dress for Less® ("Ross"), the largest off-price apparel and home fashion chain in the United States with 1,952 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. Ross offers first-quality, in-season, brand name and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 376 dd's DISCOUNTS® stores in 23 states that feature a more moderately-priced assortment of first-quality, in-season apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. Additional information is available at www.rossstores.com.
On July 16, 2026, Ross Stores Inc (ROST) shares rose 3.0% today, bringing the current price to $232.72. Over the past year, the stock has shown remarkable perfo
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Ross Stores (ROST - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Ross Stores is a member of our Retail-Wholesale group, which includes 187 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Ross Stores is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ROST's full-year earnings has moved 5.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ROST has moved about 23.7% on a year-to-date basis. At the same time, Retail-Wholesale stocks have gained an average of 0.9%. This means that Ross Stores is performing better than its sector in terms of year-to-date returns.
Another stock in the Retail-Wholesale sector, Texas Roadhouse (TXRH - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 14.2%.
The consensus estimate for Texas Roadhouse's current year EPS has increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Ross Stores belongs to the Retail - Discount Stores industry, a group that includes 7 individual companies and currently sits at #23 in the Zacks Industry Rank. On average, stocks in this group have gained 7.7% this year, meaning that ROST is performing better in terms of year-to-date returns.
On the other hand, Texas Roadhouse belongs to the Retail - Restaurants industry. This 36-stock industry is currently ranked #175. The industry has moved +2.4% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Ross Stores and Texas Roadhouse as they could maintain their solid performance.
Ross Stores (ROST - Free Report) closed the most recent trading day at $222.88, moving +1.03% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
Shares of the discount retailer witnessed a loss of 7.74% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.24%, and the S&P 500's gain of 2.2%.
The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. The company is predicted to post an EPS of $1.9, indicating a 21.79% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.1 billion, indicating a 10.36% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.74 per share and a revenue of $24.81 billion, representing changes of +17.1% and +9.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Ross Stores should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Ross Stores is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Ross Stores currently has a Forward P/E ratio of 28.51. For comparison, its industry has an average Forward P/E of 27.45, which means Ross Stores is trading at a premium to the group.
We can additionally observe that ROST currently boasts a PEG ratio of 2.48. 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. ROST's industry had an average PEG ratio of 2.48 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
After scaling record-high territories last week, the broader equity markets stumbled this week as oil prices surged following President Trump’s tirade against Iran for attacks against three commercial vessels traveling in the Strait of Hormuz. Threatening to terminate the now-on-now-off truce agreement, the U.S. President launched fresh attacks on Iran and vowed to hit it hard further in a series of retaliatory strikes.
The renewed hostilities in the Middle East prompted investors to reassess the geopolitical risks and embrace the idea of market volatility as the new normal, as a lasting U.S.-Iran agreement appears to be far from guaranteed. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc. (ROST - Free Report) , Suzano S.A. (SUZ - Free Report) , Bilbao Vizcaya Argentaria, S.A. (BBVA - Free Report) , Globe Life Inc. (GL - Free Report) and AMETEK, Inc. (AME - Free Report) are some of the stocks with high ROE to profit from.
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow less than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of assets, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 17 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 11.5% and delivered a trailing four-quarter earnings surprise of 10.2%, on average. Ross sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Suzano: Headquartered in Salvador, Brazil, Suzano produces and sells eucalyptus pulp and paper products. With more than 90 years of experience, this vertically integrated firm is one of the largest producers of paper and graphic products in South America.
The company offers coated and uncoated printing and writing papers, paperboards, tissue papers and lignin. It has a long-term earnings growth expectation of 44.1%. Suzano sports a Zacks Rank #1.
Banco Bilbao: Headquartered in Bilbao, Spain, Banco Bilbao provides retail banking, wholesale banking and asset management services primarily in Spain, Mexico, Turkey, the Rest of Europe, South America, the United States and Asia.
The company has a long-term earnings growth expectation of 16.9%. It delivered a trailing four-quarter earnings surprise of 4.5%, on average. Banco Bilbao carries a Zacks Rank #2.
Globe Life: Based in McKinney, TX, Globe Life is an insurance holding company that markets primarily individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. The company's insurance subsidiaries write a variety of non-participating ordinary life insurance products, which include traditional whole life, term life and other life insurance. Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans.
It delivered a trailing four-quarter earnings surprise of 1.1%, on average. Globe Life carries a Zacks Rank #2 at present.
AMETEK: Located in Berwyn, PA, AMETEK is one of the leading manufacturers of electronic appliances and electromechanical devices. It has more than 120 operating sites all over the world. The company operates more than 80 sales and service stations in North America, Europe, Asia and South America to support these operations.
The company has a long-term earnings growth expectation of 8.8%. It delivered a trailing four-quarter earnings surprise of 5.2%, on average. AMETEK carries a Zacks Rank #2.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today July 8th:
Alliance Laundry Holdings Inc. (ALH - Free Report) : This company, which is a provider of commercial laundry systems, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.21 compared with 1.40 for the industry. The company possesses a Growth Score of A.
Ross Stores (ROST - Free Report) : This company, which operates as an off-price retailer of apparel and home accessories, primarily in the United States, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.7% over the last 60 days.
Ross Stores has a PEG ratio of 2.41 compared with 2.42 for the industry. The company possesses a Growth Score of A.
National Energy Services Reunited (NESR - Free Report) : This company, which is one of the largest national oilfield services providers in the MENA and Asia Pacific regions, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
National Energy Services Reunited has a PEG ratio of 0.35 compared with 0.57 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Ross Stores (ROST - Free Report) closed the most recent trading day at $214.67, moving +1.57% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Heading into today, shares of the discount retailer had lost 7.06% over the past month, lagging the Retail-Wholesale sector's loss of 0.18% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Ross Stores in its upcoming release. The company is predicted to post an EPS of $1.9, indicating a 21.79% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 10.36% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.74 per share and revenue of $24.81 billion. These totals would mark changes of +17.1% and +9.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Ross Stores possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Ross Stores's current valuation metrics, including its Forward P/E ratio of 27.32. This valuation marks a premium compared to its industry average Forward P/E of 26.68.
One should further note that ROST currently holds a PEG ratio of 2.37. 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 was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Ross Stores (ROST - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Ross Stores is one of 189 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Ross Stores is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ROST's full-year earnings has moved 5.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ROST has returned 19.4% so far this year. Meanwhile, stocks in the Retail-Wholesale group have lost about 3.3% on average. This means that Ross Stores is outperforming the sector as a whole this year.
Another stock in the Retail-Wholesale sector, Next PLC (NXGPY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 9.8%.
For Next PLC, the consensus EPS estimate for the current year has increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Ross Stores belongs to the Retail - Discount Stores industry, a group that includes 7 individual companies and currently sits at #43 in the Zacks Industry Rank. This group has gained an average of 9.6% so far this year, so ROST is performing better in this area.
On the other hand, Next PLC belongs to the Retail - Apparel and Shoes industry. This 40-stock industry is currently ranked #77. The industry has moved -5.8% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Ross Stores and Next PLC as they attempt to continue their solid performance.
Key Takeaways ROST shares rose 79.6% in the past year, outperforming the S&P 500 and discount-store industry.Ross Stores is gaining from traffic growth, customer acquisition and stronger branded assortments.ROST raised FY26 guidance, with comparable sales growth of 6-7% and EPS of $7.50-$7.74. Ross Stores, Inc. (ROST - Free Report) has emerged as one of the strongest performers within its industry over the past year. Shares of ROST have surged 79.6% in the past year, significantly outperforming the broader market and most industry peers. Over the same period, the S&P 500 advanced 24.4%, the Retail - Discount Stores industry gained 14.1% and the broader Retail-Wholesale sector rose 2.9%.
ROST Stock’s Past Year Performance
Image Source: Zacks Investment Research
As of the latest trading session, Ross Stores closed at $228.6, just 5.9% below its 52-week high of $242.81 reached on June 12, 2026. The stock is trading above both its 50- and 200-day moving averages, signaling bullish sentiment.
ROST Trades Above 50 and 200-Day Moving Average
Image Source: Zacks Investment Research
What’s Fueling Ross Stores’ Rally?Ross Stores continues to gain from strong customer acquisition and traffic growth, which have been key drivers of its comparable-store sales performance. Transaction growth has accelerated for three straight quarters, supported by double-digit customer count gains across income groups, age demographics and ethnicities. Younger shoppers, in particular, are responding well to refreshed marketing efforts, improved store presentation and compelling branded assortments.
The company’s merchandising strength is another major catalyst. Ross Stores is benefiting from healthy closeout availability in the marketplace, deeper vendor relationships and improved access to branded deals. Its ability to quickly secure seasonally relevant merchandise has helped the company chase demand effectively while maintaining its value proposition.
Operational execution also remains solid. Ross Stores delivered merchandise margin gains and operating margin expansion in the first quarter, aided by occupancy leverage and lower distribution costs. The company’s disciplined cost structure, combined with strong sales productivity, continues to support earnings growth even as it invests in stores, marketing and customer experience.
Store expansion adds another layer of growth. Ross Stores plans to open about 110 stores this year, including Ross and dd’s DISCOUNTS locations, while recent openings are performing well across new and existing markets. Continued expansion in underpenetrated regions, including the Northeast, should help broaden the company’s customer reach and reinforce its long-term growth runway.
Upward Earnings Estimate Revisions Signal Confidence in ROSTRoss Stores remains optimistic about its growth prospects, backed by solid sales momentum and improving execution. Management expects second-quarter comparable sales growth of 6-7% and raised its full-year fiscal 2026 outlook, projecting comparable sales growth of 6-7% and earnings per share of $7.50-$7.74.
While acknowledging potential macroeconomic uncertainties, including higher fuel costs and consumer spending pressures, the company believes its value-focused business model, strong customer acquisition trends, merchandising initiatives and expanding store base position it well to sustain healthy sales and earnings growth over the remainder of the year.
Reflecting optimism around ROST, analysts have revised their EPS estimates upward. In the past 30 days, analysts have increased their fiscal 2026 and 2027 estimates by 1.3% to $7.74 and 1.3% to $8.48 per share, respectively. These estimates indicate expected year-over-year growth rates of around 17.1% and 9.6%, respectively.
Image Source: Zacks Investment Research
ROST Stock’s ValuationRoss Stores is currently trading at a discount relative to its industry peers. ROST stock trades at a forward 12-month price-to-earnings (P/E) ratio of 28.47, lower than the industry’s average of 31.39.
Image Source: Zacks Investment Research
Here’s Why ROST Can Be an Attractive PlayRoss Stores continues to execute well across key growth drivers, including customer acquisition, merchandising, operational efficiency and store expansion. Strong comparable sales, margin expansion and raised earnings guidance reflect the strength of its value-focused business model, while positive estimate revisions underscore growing analyst confidence.
Although macroeconomic uncertainties such as higher fuel costs and consumer spending pressures remain, ROST's resilient off-price model and attractive valuation relative to the industry support a favorable long-term investment case. Currently, this Zacks Rank #1 (Strong Buy) stock appears well positioned for investors seeking exposure to the renewable fuels market and long-term growth opportunities.
Other Stocks to ConsiderFive Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.7% and 34.3%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Victoria’s Secret & Co. (VSXY - Free Report) operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 8.8% and 53.7%, respectively, from the year-ago figures. VSXY delivered a trailing four-quarter earnings surprise of 55.1%, on average.
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The broader equity markets staged a remarkable turnaround last week after a sharp decline due to the Federal Reserve-induced sell-off, as several key officials envisioned a possible rate hike as early as October. This led bond yields to surge despite the central bank leaving interest rates unchanged at a target range of 3.5% to 3.75% under new Chairman Kevin Warsh. However, the market was quick to reverse the trend, led by a strong rally from semiconductor stocks.
Investors now await the release of the personal consumption expenditures price index data for May to gauge a clearer picture of inflation amid uncertainty about the trajectory of monetary policy. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc. (ROST - Free Report) , TE Connectivity plc (TEL - Free Report) , Bilbao Vizcaya Argentaria, S.A. (BBVA - Free Report) , Globe Life Inc. (GL - Free Report) and The Charles Schwab Corporation (SCHW - Free Report) are some of the stocks with high ROE to profit from.
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow less than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of assets, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 16 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 11.5% and delivered a trailing four-quarter earnings surprise of 10.2%, on average. Ross sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
The company has a long-term earnings growth expectation of 12.5%. It delivered a trailing four-quarter earnings surprise of 6%, on average. It has a VGM Score of B. TE Connectivity carries a Zacks Rank #2.
Banco Bilbao: Headquartered in Bilbao, Spain, Banco Bilbao provides retail banking, wholesale banking and asset management services primarily in Spain, Mexico, Turkey, the Rest of Europe, South America, the United States and Asia.
The company has a long-term earnings growth expectation of 16.9%. It delivered a trailing four-quarter earnings surprise of 4.5%, on average. Banco Bilbao carries a Zacks Rank #2.
Globe Life: Based in McKinney, TX, Globe Life is an insurance holding company that markets primarily individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. The company's insurance subsidiaries write a variety of non-participating ordinary life insurance products, which include traditional whole life, term life and other life insurance. Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans.
It delivered a trailing four-quarter earnings surprise of 1.1%, on average. Globe Life carries a Zacks Rank #2 at present.
Charles Schwab: Headquartered in Westlake, TX, Charles Schwab is a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services. The company has nearly 400 branches across 48 states and the District of Columbia, as well as locations in Puerto Rico, the U.K., Hong Kong and Singapore.
The company has a long-term earnings growth expectation of 17.8%. It delivered a trailing four-quarter earnings surprise of 3.8%, on average. Charles Schwab carries a Zacks Rank #2.
Investors might want to bet on Ross Stores (ROST - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Ross Stores is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Ross Stores imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Ross StoresThis discount retailer is expected to earn $7.74 per share for the fiscal year ending January 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Ross Stores. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Ross Stores to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June 15:
EZCORP, Inc. (EZPW - Free Report) : This pawn services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.
EZCORP's shares gained 21.1% over the last three months compared with the S&P 500’s decline of 10.7%. The company possesses a Momentum Score of A.
nVent Electric plc (NVT - Free Report) : This electrical equipment company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days.
nVent Electric’s shares gained 45.3% over the last three months compared with the S&P 500’s decline of 10.7%. The company possesses a Momentum Score of A.
Ross Stores, Inc. (ROST - Free Report) : This discount retail company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.7% over the last 60 days.
Ross Stores’ shares gained 15.7% over the last three months compared with the S&P 500’s decline of 10.7%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Key Takeaways ROST posted Q1 EPS of $2.02 on $6B sales, beating estimates as comps climbed 17% YoY.Ross Stores cited strong traffic, spring product transitions, marketing and an improved in-store experience.ROST raised FY26 EPS to $7.50-$7.74 and sees 6-7% comp growth; buybacks and store openings continue. Ross Stores, Inc. (ROST - Free Report) reported first-quarter fiscal 2026 results, with earnings and sales surpassing the Zacks Consensus Estimate. Net sales and earnings per share (EPS) also increased from the prior-year period.
Ross Stores posted first-quarter earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.70 and exceeding the company’s guidance of $1.60 to $1.67. The bottom line rose 37% from $1.47 per share in the prior-year period.
Total sales reached $6 billion, rising 21% year over year and beating the Zacks Consensus Estimate of $5.6 billion. Comparable store sales (comps) increased 17% year over year, driven by an increase in the number of transactions.We expected comps growth of 5% in the first quarter of fiscal 2026.
Ross Stores' stock gained more than 5% in after-hours trading yesterday following the off-price retailer's report of better-than-expected first-quarter fiscal 2026 results, and it raised its full-year outlook. Investor sentiment was boosted by the company’s strong earnings beat and improved fiscal 2026 EPS guidance. The upbeat results reflected strong customer traffic, compelling merchandise assortments, successful Spring product transitions, effective marketing initiatives and an enhanced in-store shopping experience, signaling continued momentum in ROST’s underlying business fundamentals.
Shares of the Zacks Rank #3 (Hold) company have gained 7.6% in the past three months compared with the industry's 4% growth.
Image Source: Zacks Investment Research
Insight Into ROST’s Q1 PerformanceCost of goods sold (COGS) rose 18.1% year over year to $4.2 billion. COGS, as a percentage of sales, declined 145 basis points (bps) year over year. The company’s merchandise margin improved by 85 basis points, while occupancy costs as a percentage of sales decreased by 60 basis points due to strong sales growth.Our model predicted COGS to increase 7.8% year over year and contract 10 bps to 71.7%, as a percentage of sales, in the fiscal first quarter.
Distribution and domestic freight costs fell by 15 and 10 bps, respectively. However, these gains were partly offset by a 25-basis-point increase in buying costs and SG&A expenses, mainly due to higher incentive compensation following the company’s strong earnings performance. Marketing and store-related costs improved as a percentage of sales.
The company’s operating income rose 32.6% year over year to $804 million, with the operating margin expanding 120 bps to 13.4%.Our model predicted a 8.9% year-over-year growth in operating income, with a 20-bps operating margin contraction to 12% in the fiscal second quarter.
Sneak Peek Into ROST’s Other FinancialsRoss Stores ended the fiscal first quarter with cash and cash equivalents of $4.1 billion, after funding business growth and capital requirements. The company has a long-term debt of $776.8 million and a total shareholders’ equity of $6.3 billion.
Consolidated inventories increased 12% year over year, with packaway accounting for 36% of the total inventory, down from 41% in the prior year. Management expressed confidence in the overall level and composition of inventory entering the second quarter, noting that the availability of closeout product in the marketplace remains strong.
Ross repurchased 1.5 million shares for $319.0 million under a new two-year $2.55 billion authorization approved in March 2026 and reiterated plans to buy back $1.275 billion of stock in fiscal 2026.
ROST’s Store UpdateThe company also kept store expansion on track. ROST opened 13 Ross Dress for Less and four dd’s DISCOUNTS locations in the first quarter and continues to target roughly 110 new stores this year, comprised of about 85 Ross and 25 dd’s, excluding planned closures or relocations of older units. Management also pointed to encouraging early results from newer markets and continued progress in building a Northeast pipeline.
For the second quarter of fiscal 2026, the company plans to add 47 new stores, consisting of 35 Ross and 12 dd's DISCOUNTS.
ROST Lifts Full-Year View After Strong Start to FY26ROST guided for second-quarter comparable-store sales growth of 6-7% and earnings of $1.85 to $1.93 per share, assuming sales perform in line with the forecast. Management expects an operating margin of 12.8-13.0% for the quarter, reflecting merchandise margin improvement and lower distribution costs as it anniversaries prior-year impacts.
For fiscal 2026, management raised its outlook for comparable-store sales growth to 6-7% and now expects earnings of $7.50-$7.74 per share, up 13-17% from last year. The company also reiterated that tariff refund claims are excluded from guidance, given the uncertainty around timing and ultimate reimbursement amounts.
Stocks to considerWe have highlighted three better-ranked stocks, namely, Tapestry, Inc. (TPR - Free Report) , Victoria's Secret & Co. and Levi Strauss & Co. (LEVI - Free Report) .
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It carries a Zacks Rank #2 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year earnings and sales indicates growth of 36.3% and a decline of 13.2%, respectively, from the year-ago actuals. The company delivered a trailing four-quarter average earnings surprise of 15.6%.
Victoria's Secret is a specialty retailer of women's intimates, sleepwear, apparel, sport and swimwear, and prestige fragrances and body care. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for VSCO’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago reported numbers. The company delivered a trailing four-quarter earnings surprise of 55.1%, on average.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for LEVI’s current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. The company delivered a trailing four-quarter average earnings surprise of 21.4%.
Ross Stores ROST is experiencing significant gains, reaching all-time highs following a robust Q1 report for FY27. The off-price retailer exceeded expectations with an impressive earnings per share (EPS) performance, coupled with a 20.6% year-over-year revenue growth, totaling $6.01 billion. ROST also provided optimistic guidance for Q2 EPS and revenue, while raising its FY27 EPS and comparable sales outlook.
Comparable sales surged by 17%, marking the highest growth in the company’s history, following a 9% increase in Q4. ROST attributed part of this success to higher tax refunds, but strong underlying trends remained evident, primarily driven by increased transactions. The sales momentum was encouraging, with a solid February followed by consistent mid-teen comps throughout the quarter. ROST reported healthy growth in customer count across various income levels, ethnicities, and age groups, including younger shoppers. This reinforces its image as a sought-after value destination with widespread appeal. Operating margins expanded by 120 basis points to 13.4%, significantly surpassing expectations, as the cost of goods sold (COGS) as a percentage of sales decreased by 145 basis points. Merchandise margins improved by 85 basis points, and distribution and domestic freight costs showed modest improvements. For Q2, ROST anticipates an operating margin between 12.8% and 13.0%, up from 11.5% last year. Looking forward, ROST has revised its FY27 comparable sales forecast to +6-7%, up from the previous estimate of +3-4%, following a +5% growth in FY26. EPS is now projected to be between $7.50 and $7.74. Management noted that initial results from merchandising, marketing, and store initiatives are promising, indicating potential for ongoing enhancements. This strong start to FY27 highlights ROST's effective execution in a favorable off-price demand environment. The impressive +17% comparable sales growth, particularly following a strong holiday quarter, reflects a positive trend that extends beyond February. The primarily transaction-driven comp, along with customer growth across diverse demographics, suggests that Ross is broadening its appeal as a value destination. Management also mentioned improved messaging and media strategies that have positively impacted customer acquisition and engagement. With the stock reaching new highs and expectations rising, the upgraded FY27 outlook and the indication that many initiatives are still in early development suggest that ROST has ample room for future growth.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The off-price retailer also benefited from improved product availability and steady momentum across key merchandise categories.
Strong Traffic Drives Quarterly ResultsOn Thursday, the company reported first-quarter results, with sales soaring 21% year over year and comparable-store sales up 17%.
BTIG analyst Robert Drbul reiterated a Neutral rating on the stock, citing that traffic was the clear driver, with double-digit growth in customer count across income levels and age cohorts, including younger consumers.
According to Drbul, modern marketing efforts are driving incremental traffic, while merchants continue to benefit from the strong availability of closeout products and improved vendor access.
The analyst highlighted that ladies’ and cosmetics led the business, and trends remained consistent through the quarter following a strong start in February and steady mid-teen comps thereafter.
Analyst Raises Earnings EstimatesThe analyst raised the 2026 EPS estimate to $7.70.
Drbul expects Ross Stores to deliver high-single-digit sales growth this year, with comparable sales rising 6.5%.
The analyst also raised fiscal 2027 EPS estimates to $8.40, expecting margin expansion and SG&A leverage alongside mid-single-digit revenue growth.
Drbul expects operating margin expansion to contribute modest annual EPS growth through stronger gross margins and expense discipline.
The analyst also sees share repurchases supporting EPS growth, but prefers a better entry point with shares near 52-week highs.
Wall Street Remains BullishThe stock carries a Buy rating with an average price forecast of $248.50. Recent analyst moves include:
Wells Fargo: Overweight (Raises forecast to $245.00) (May 22) Truist Securities: Buy (Raises forecast to $290.00) (May 22) UBS: Neutral (Raises forecast to $232.00) (May 22) ROST Price Action: Ross Stores shares were up 6.95% at $232.29 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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Ross Stores reported quarterly earnings of $2.02 per share which beat the analyst consensus estimate of $1.68 per share. The company reported quarterly sales of $6.010 billion which beat the analyst consensus estimate of $5.567 billion.
Ross Stores raised its FY2026 GAAP EPS guidance from $7.02-$7.36 to $7.50-$7.74.
Ross Stores shares gained 7.4% to trade at $233.17 on Friday.
These analysts made changes to their price targets on Ross Stores following earnings announcement.
Considering buying ROST stock? Here’s what analysts think:
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On May 22, 2026, Ross Stores Inc ROST shares rose 8.1% to a current price of $234.81. This impressive daily performance is part of a broader trend, with the stock up 30.6% year-to-date and a staggering 55.8% over the past year. The shares have fluctuated between a 52-week high of $235.80 and a low of $124.49.
GF Value™ verdict: Current price of $234.81 is 43.0% above the GF Value™ estimate of $164.17, indicating it is overvalued.GF Score™ of 93/100, which signals a strong overall performance relative to its peers.Notable signal: Insider activity shows that insiders have sold $10.3M worth of stock in the last three months, with no reported buying. Is ROST Overvalued or Undervalued? The current price of Ross Stores Inc ROST at $234.81 is significantly above the GF Value™ estimate of $164.17, leading to an overvaluation of approximately 43.0%. This suggests that the market may be pricing in overly optimistic growth expectations or that recent price momentum has driven shares beyond intrinsic value. The GF Valuation label indicates that ROST is "Significantly Overvalued," which introduces a level of risk for potential investors. In the current market environment, a lack of margin of safety could lead to price corrections if future earnings do not meet heightened expectations.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should be cautious as the significant disparity between the market price and GF Value™ could result in volatility if the stock price adjusts to align with its intrinsic value.
How Does ROST's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 32.8x 24.2x Forward P/E 31.6x N/A Ross Stores' current P/E (TTM) of 32.8x is 35% above its 5-year median of 24.2x, indicating that the stock is trading well above its historical valuation norms. This P/E analysis is consistent with the GF Value™ verdict that suggests the stock is overvalued. The elevated P/E ratio further reinforces concerns regarding the sustainability of the company's growth and profitability at the current price level.
What Does ROST's GF Score™ Tell Us? Metric Rating GF Score™ 93 Financial Strength 8/10 Profitability 9/10 Growth 9/10 Valuation 5/10 Momentum 9/10 The GF Score™ of 93/100 reflects a strong overall performance, particularly in the areas of Profitability (9/10) and Growth (9/10), which suggest that Ross Stores has been effective in managing its operations and expanding its business. However, the Valuation rank of 5/10 indicates that while the company performs well operationally, its current stock price does not reflect a favorable valuation compared to its historical performance and industry peers. This discrepancy highlights the need for caution, as the high momentum score (9/10) does not justify the current elevated price levels.
What Are Insiders Doing with ROST Stock? In the past three months, insider activity at Ross Stores has seen a total of $10.3 million in shares sold, with no reported insider buying during the same period. This pattern of selling may suggest that insiders believe the stock price has reached a peak or that they anticipate potential challenges ahead. Such selling could reflect a lack of confidence in the stock's current valuation or future performance. Investors often view insider selling as a cautionary signal, especially when no buying activity accompanies it.
What This Means for Investors In conclusion, Ross Stores Inc ROST appears to be overvalued based on the GF Value™ estimate. The current price is significantly higher than the intrinsic value calculated by GuruFocus, indicating potential risks for investors considering a position in the stock.
For the complete analysis, visit the Ross Stores Inc ROST stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ROST's GF Score™?
ROST has a GF Score™ of 93/100, indicating a strong performance across various metrics, suggesting the potential for higher long-term returns.
Is ROST overvalued or undervalued?
ROST is considered overvalued as its current price of $234.81 is significantly above the GF Value™ estimate of $164.17.
What is ROST's P/E ratio?
ROST's P/E (TTM) ratio is 32.8x, which is 35% higher than its 5-year median of 24.2x, further supporting the conclusion of overvaluation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Corporate earnings season often creates short-term winners, but investors looking for sustained upside should pay closer attention to companies that not only beat earnings expectations, but also reinforce strong operational momentum and improved outlooks.
Three stocks that stood out in this week's earnings lineup and shouldn’t be overlooked were Lionsgate Studios (LION - Free Report) ), Keysight Technologies (KEYS - Free Report) ), and Ross Stores (ROST - Free Report) ), with each sporting a Zacks Rank #2 (Buy).
Lionsgate Studios Builds MomentumLionsgate Studios delivered a strong quarterly performance for its fiscal fourth-quarter, as improved theatrical results and disciplined execution helped profitability trends improve.
To that point, Q4 EPS spiked more than 70% to $0.37 from $0.21 per share in the prior year quarter. Crushing its Q4 EPS expectations of $0.24 by 54%, Lionsgate has benefited from successful film releases, including strong performance from The Housemaid.
Management has also continued to emphasize the value of its content library and franchise portfolio, which includes globally recognized properties like The Hunger Games, John Wick, and Saw.
Investors also appear increasingly optimistic about the company’s standalone studio structure following its separation from Starz.
For growth investors, Lionsgate offers a compelling combination of:
Improving studio economicsValuable intellectual property assetsStreaming licensing opportunitiesPotential upside from theatrical recovery trendsWhile media stocks can be prone to volatility, Lionsgate’s improving earnings trajectory could make its stock increasingly attractive if execution continues to strengthen throughout 2026.
Keysight Technologies Delivers a Major Fiscal Q2 BeatKeysight Technologies produced one of the most impressive earnings reports in the technology sector this week, easily surpassing Wall Street's bottom line expectations for its fiscal second-quarter.
The electronic testing and measurement equipment company posted adjusted earnings of $2.87 per share, crushing expectations of $2.33 by 23% while soaring nearly 70% from Q2 EPS of $1.70 a year ago.
Even more encouraging was Keysight’s forward guidance as management issued stronger-than-expected Q3 projections while raising its broader outlook, signaling confidence in sustained demand across several high-growth technology markets.
Keysight continues to benefit from several powerful long-term themes:
AI infrastructure expansionHigh-speed networking investmentsSemiconductor innovation5G-Advanced and early 6G developmentAutomotive electronics growthKeysight’s communications solutions business remained a major growth driver, while total orders reportedly doubled YoY.
With AI-related capital spending accelerating across the technology landscape, Keysight is positioned as a critical infrastructure enabler for data centers, chipmakers, and networking providers.
Investors have already rewarded the stock with strong momentum this year, but the latest beat-and-raise quarter suggests the fundamental story may still have room to run.
Ross Stores Shows Consumers Still Love ValueRoss Stores reminded investors why off-price retail often performs well in uncertain economic environments.
The discount retailer posted exceptionally strong Q1 results, with earnings and sales both significantly surpassing expectations. Revenue jumped roughly 21% YoY to $6 billion while Q1 EPS climbed 37% to $2.02 and impressively exceeded expectations of $1.70 by nearly 19%. Notably, comparable-store sales surged an impressive 17%.
Strong customer traffic, compelling merchandise offerings, improved in-store experiences, and effective marketing campaigns were the key drivers behind the outperformance.
Perhaps most importantly, Ross raised its full-year guidance following the strong quarter. The company now expects:
Comparable sales growth of 6%-7%Fiscal-year EPS between $7.50-$7.74 (13-17% Growth)Both figures came in above prior guidance and analyst expectations, and Ross continues to benefit from a consumer environment where shoppers remain highly focused on value.
Even higher-income consumers have increasingly turned toward off-price retailers in search of bargains amid inflationary pressures and elevated living costs.
Ross Stores also maintains a strong store expansion strategy, planning to open roughly 110 new locations during fiscal 2026.
Conclusion & Final Thoughts Earnings beats alone do not guarantee long-term stock performance, but companies that combine strong quarterly execution with improving guidance and favorable industry trends often deserve additional attention.
Lionsgate Studios is showing improved profitability and monetization potential from its valuable content portfolio, while Keysight Technologies is riding a powerful AI and networking infrastructure trend, and Ross Stores remains one of the clearest beneficiaries of value-focused consumer spending behavior.
After their strong earnings reports this week, these top-rated stocks may still offer investors meaningful upside potential moving forward.
Ross Stores Inc. NASDAQ: ROST demonstrated once again that bargain hunting is alive and well in today's economy. The off-price retailer posted strong first-quarter results on May 21 as higher customer traffic across the board helped drive growth.
The results also extended the company's streak of better-than-expected earnings and helped reignite momentum in the stock.
Get Ross Stores alerts:
Shares, which had pulled back recently as investors took a breather after an impressive run, rose nearly 7% and hit a new all-time high following the report.
Strong Traffic Growth Fuels Earnings BeatRevenue for the quarter rose 21% year over year to $6.01 billion, topping analyst estimates by $369 million. Comparable store sales increased 17% from the prior-year period. Customer traffic was the primary driver of the strong sales trend, though the company said higher tax refunds also helped support consumer spending.
On the earnings call, Chief Executive James Conroy said the increase in traffic was broad-based among demographic groups. "We saw healthy increases in customer count on a comp store basis across income levels, ethnicities, and all age groups, including the young customers."
The strong sales performance also helped drive meaningful margin expansion. Operating margin came in at 13.4%, well above the company's estimate of 11.8% to 12.1%. Net income rose to $650 million from $479 million last year, while earnings per share increased to $2.02 from $1.47 in the prior-year period, and easily topped Wall Street expectations of $1.73 per share.
Ross Stores Raises Full-Year OutlookRoss Stores also provided upbeat second-quarter guidance and raised its full-year outlook. For the second quarter, the company expects comparable store sales growth of 6% to 7%, which could translate to earnings per share of $1.85 to $1.93, compared with $1.56 per share in the year-ago period.
Total sales are projected to rise 9% to 11%, while operating margin is expected to improve to 12.8% to 13.0%, up from 11.5% last year.
For the full year, Ross now expects same-store sales growth of 6% to 7%, building on a 5% gain in 2025. Earnings per share are projected to be between $7.50 and $7.74, up from $6.61 last year. Previously, the company had forecast same-store sales growth of 3% to 4% and earnings per share of $7.02 to $7.36.
Earnings Help Reignite Stock MomentumThe latest quarter marked the 16th consecutive earnings beat for Ross Stores, an impressive stretch that has helped drive shares up more than 85% over the last five years. Over the last year alone, shares have gained more than 50%.
Ross Stores, Inc. (ROST) Price Chart for Friday, June, 12, 2026
The stock hit an all-time high above $231 on May 7 but had pulled back in recent weeks, likely as investors took profits and looked for signs that the company could continue to deliver strong results despite a difficult macroeconomic backdrop. Shares had fallen to around $217 ahead of the earnings report.
However, the strong first-quarter results and upbeat outlook seemed to give investors the reassurance they were looking for. By midday Friday, shares were trading at a new all-time high above $232.
Analysts Stay Bullish, Though Upside May Be LimitedWall Street has remained largely bullish on Ross Stores following the strong earnings report. The stock currently carries a Moderate Buy consensus rating, based on 17 Buy ratings and five Holds. Since the start of the month, four analysts have raised their price targets on the shares.
Still, after such a strong multiyear run, many analysts see limited to no upside ahead. The average 12-month price target of roughly $223 suggests a slight downside from the current stock price.
Of the 18 analysts with price targets on the stock, 11 have targets below the current share price, ranging from $130 to $227. The remaining targets range from $235 to $290.
Off-Price Retailers Continue to OutperformRoss Stores is not the only off-price retailer benefiting as consumers have become more selective in their spending. Fellow discount retailers TJX Companies Inc. NYSE: TJX and Burlington Stores Inc. NYSE: BURL have also enjoyed long streaks of better-than-expected earnings reports as consumers have continued to hunt for deals amid a tough macroeconomic climate.
TJX, which reported another better-than-expected quarter on May 20, has seen its stock rise about 18% over the last year and more than 135% over the last five years.
Meanwhile, Burlington, which is set to report first-quarter earnings on May 28, is up more than 23% over the last year. While the stock is down slightly over the last five years, having given back much of its pandemic-era gains, shares have climbed more than 170% since October 2022.
Ross Stores' valuation is largely in line with its peers. The stock currently trades at a price-to-earnings (P/E) ratio of 35X, compared with 30X for TJX and 34X for Burlington. The broader retail industry currently has a P/E ratio of around 25X.
Ross Stores' strong quarter reinforced the idea that off-price retailers continue to outperform in a difficult retail environment. While many analysts see limited upside following the stock's massive multiyear rally, the latest earnings beat and raised guidance could help reignite momentum in the shares.
Should You Invest $1,000 in Ross Stores Right Now?Before you consider Ross Stores, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ross Stores wasn't on the list.
While Ross Stores currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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The stock market and the economy are not the same thing, but in 2026, they share one trait: skepticism. Despite blockbuster earnings reports from companies like NVIDIA NYSE: NVDA, Palantir Technologies NASDAQ: PLTR, and Alphabet NASDAQ: GOOGL, this may be the most reluctant bull market in history. That doesn’t mean investors are leaving the market, but the concentration of market winners is still not broadly expanding to other sectors.
The recent retail earnings reports aren’t going to change that. On the surface, the consumer looks resilient. The retail sales data continues to at least meet, if not exceed, expectations. However, all may not be as it seems. Retail giants like Walmart Inc. NASDAQ: WMT, Home Depot NYSE: HD and TJX Companies NYSE: TJX have been telling a cautious story.
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Consumers are still spending, but with real intentionality. And since investors are also consumers, it may be getting harder to separate the two. The investor deciding whether to add a retail stock to their portfolio and the shopper deciding whether to remodel their kitchen are, increasingly, the same person making the same calculation: is now the right time to commit?
How Consumers Are Actually SpendingThe word "choiceful" has become part of the retail lexicon. Walmart used it explicitly on its Q1 earnings call to describe a customer who is still showing up but making sharper trade-offs at every price point. Management also pointed to consumers shifting toward private-label brands, even among higher-income consumers.
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Home Depot offered one of the more telling data points of the earnings season: same-store sales growth remained modest, with customers completing smaller repair and maintenance projects while continuing to defer large remodels.
Lowe's NYSE: LOW also spoke of a consumer who is engaged but not confident. Both stocks have held up reasonably well because repair-and-maintain spending is more recession-resistant than new construction—but neither is a growth story right now.
At the lower leg of the "K-shaped" economy, consumers are even more careful. Tax refunds, no matter how much bigger they were, have largely been spent. Inflation and rising energy prices are squeezing budgets further, leading some analysts to raise the prospect of interest rate hikes, which would be an additional headwind for discretionary retail and for the housing-adjacent names that depend on an active mortgage market.
A more uncomfortable, but honest, question is, how are the lower-income consumers doing? Consumer delinquency rates are a lagging indicator and can be tricky, as can be the percentage of revolving debt being carried by consumers. However, one of the newest arrows in the consumer purchasing quiver is sending a clear signal that’s hard to ignore.
Buy Now Pay...Never?As of March 2026, 47% of buy-now-pay-later (BNPL) users report having paid late on a loan in the past year. That was up 6 points from 41% in 2025, and up 13 points from 34% in 2024. Delinquencies on multiple loan types have hit historic highs in recent years, concentrated primarily among low-income earners.
The structural problem is twofold. First, BNPL was designed to be a budgeting tool; instead, it's become a financial lifeline, with more than half of current users reporting they wouldn't be able to make ends meet without it.
Second is the issue of invisible debt: most BNPL debt doesn't appear in credit bureaus, creating what regulators call "phantom debt." That means the stress doesn't show up in traditional delinquency metrics until it's already acute. For investors watching retail same-store sales for signs of consumer strain, this is precisely why those numbers can look fine right up until they don't.
The Bifurcated InvestorThis has been a sobering look at the data, but data shouldn't be ignored simply because it's inconvenient. And there is genuine good news: the stock market is truly different from the economy. Despite, and maybe because of, the uncertain retail environment, it's never been more important to build wealth, and stocks remain a proven way to do that.
But it's also important to know what you own. A K-shaped economy calls for a K-shaped portfolio approach. That means being deliberate about which end of the consumer spectrum each stock is actually serving. For many investors, this means buying companies with strong, growing earnings and plenty of cash on the balance sheet.
In the case of technology stocks, investors should pay less attention to valuation models that don't account for the digital age and let the company's performance do the talking. The “customers” of these companies are hyperscalers that are committing billions of dollars to AI infrastructure. Those companies are spending based on defined future demand.
Energy stocks are a momentum play right now, and there's a technology tie-in to this sector that is becoming increasingly hard to ignore. At every level of the AI infrastructure chain, this earnings season has confirmed the demand story—and as buildout accelerates, it confirms the need for energy in every form.
For investors who find that retail stocks are closer to "buying what they know," there's still quality and value to go around. TJX Companies and Ross Stores NASDAQ: ROST have a structural tailwind in this environment. The off-price retail companies attract both the value-seeker trading down and the bargain-hunter trading across, making them more resilient than most in a bifurcated economy.
But with retail stocks broadly, valuation matters a great deal. That may mean keeping names on a watch list until there is stronger evidence of a consumer recovery—or until the BNPL data, which may be the most honest real-time signal we have, starts moving in the right direction. After all, the same consumer who is leaning on installment loans to cover groceries is the one your favorite retail stock is counting on to walk through the door.
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A strong stock as of late has been Ross Stores (ROST - Free Report) . Shares have been marching higher, with the stock up 4.1% over the past month. The stock hit a new 52-week high of $236.29 in the previous session. Ross Stores has gained 30.3% since the start of the year compared to the 4.3% move for the Zacks Retail-Wholesale sector and the 12.5% return for the Zacks Retail - Discount Stores industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 21, 2026, Ross Stores reported EPS of $2.02 versus consensus estimate of $1.7.
For the current fiscal year, Ross Stores is expected to post earnings of $7.64 per share on $24.61 in revenues. This represents a 15.58% change in EPS on a 8.19% change in revenues. For the next fiscal year, the company is expected to earn $8.37 per share on $26.03 in revenues. This represents a year-over-year change of 9.66% and 5.77%, respectively.
Valuation MetricsThough Ross Stores has recently hit a 52-week high, what is next for Ross Stores? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ross Stores has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 30.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.9X. On a trailing cash flow basis, the stock currently trades at 28.6X versus its peer group's average of 20.7X. Additionally, the stock has a PEG ratio of 2.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Ross Stores currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ross Stores meets the list of requirements. Thus, it seems as though Ross Stores shares could have potential in the weeks and months to come.
How Does ROST Stack Up to the Competition?Shares of ROST have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Burlington Stores, Inc. (BURL - Free Report) . BURL has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Burlington Stores, Inc. beat our consensus estimate by 4.04%, and for the current fiscal year, BURL is expected to post earnings of $11.30 per share on revenue of $12.71 billion.
Shares of Burlington Stores, Inc. have gained 1.6% over the past month, and currently trade at a forward P/E of 28.89X and a P/CF of 19.64X.
The Retail - Discount Stores industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ROST and BURL, even beyond their own solid fundamental situation.
Key Takeaways ROST delivered Q1 FY26 sales up 21% and comps up 17%, driven mainly by higher transactions.ROST's value-focused model and disciplined inventory management are drawing more customers and boosting spend.ROST plans 110 FY26 openings and 5% unit growth; Q2 FY26 comps forecast at 6-7%. Ross Stores, Inc. (ROST - Free Report) has been making smart moves to enrich shoppers’ experience and bolster growth. The company is focused on several strategies to drive growth and strengthen its position in the off-price retail market. It continues to benefit from its value-focused business model, disciplined inventory management and expanding store base.
The company’s strategic initiatives, including its ongoing store openings and expansions, have successfully boosted comparable store sales (comps) by attracting more customers and increasing average spending. It continues to gain from positive customer response for its merchandise across banners. In first-quarter fiscal 2026, sales increased 21% and comps rose 17%, with management attributing the comp primarily to higher transactions and growing customer count.
The company continues its disciplined expansion strategy. Its store-expansion efforts are focused on continually increasing penetration in the existing as well as new markets. In first-quarter fiscal 2026, the company opened 13 Ross Dress for Less and four dd’s DISCOUNTS locations. Management also pointed to encouraging early results from newer markets and continued progress in building a Northeast pipeline. For second-quarter fiscal 2026, the company forecasts comps to increase 6-7%.
Management continues to plan for about 5% unit growth in fiscal 2026 with roughly 110 openings, comprised of about 85 Ross and 25 dd’s, excluding planned closures or relocations of 10-15 older stores. For second-quarter fiscal 2026, the company plans to add 47 new stores, consisting of 35 Ross and 12 dd’s DISCOUNTS. Management also guided the new store productivity of about 70-75% of a mature store for fiscal 2026 openings. Over the longer term, Ross Stores had earlier cited a capacity for 2,900 Ross stores and 700 dd’s DISCOUNTS stores.
Overall, Ross Stores continues to rely on value pricing, disciplined execution, opportunistic merchandising and store expansion to support growth amid periods of macroeconomic uncertainty and cautious consumer spending. In a nutshell, Ross Stores appears well-poised for long-term growth, supported by steady store openings, solid execution and financial resilience.
ROST’s Price Performance, Valuation and EstimatesShares of Ross Stores have gained 33.1% in the past six months compared with the industry’s growth of 13.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROST trades at a forward price-to-earnings ratio of 29.68X compared with the industry’s average of 32.44X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROST’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 15% and 8.6%, respectively. The estimates for the aforesaid fiscal years have moved north in the past seven days.
Image Source: Zacks Investment Research
Ross Stores stock currently carries a Zacks Rank #2 (Buy).
More Key Retail Stock PicksKohl's Corporation (KSS - Free Report) , which is a department store chain, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KSS delivered a trailing four-quarter earnings surprise of 72.3%, on average. The Zacks Consensus Estimate for KSS’ current financial-year sales indicates a drop of 1% from the year-ago number.
Levi Strauss & Co. (LEVI - Free Report) , which is a designer and marketer of jeans, casual wear and related accessories, currently carries a Zacks Rank of 2.
LEVI delivered a trailing four-quarter earnings surprise of 21.4%, on average. The Zacks Consensus Estimate for Levi Strauss’ current financial-year sales indicates growth of 5.2% from the year-ago number.
Fossil Group, Inc. (FOSL - Free Report) , which is a designer and marketer of fashion accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current financial-year earnings is expected to rise 87.6% from the corresponding year-ago reported figure. FOSL delivered an earnings surprise of 86.4% in the last reported quarter.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ross Stores (ROST - Free Report) .
Ross Stores currently has an average brokerage recommendation (ABR) of 1.30, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.30 approximates between Strong Buy and Buy.
Of the 20 recommendations that derive the current ABR, 17 are Strong Buy, representing 85% of all recommendations.
Brokerage Recommendation Trends for ROST
Check price target & stock forecast for Ross Stores here>>>
The ABR suggests buying Ross Stores, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ROST?Looking at the earnings estimate revisions for Ross Stores, the Zacks Consensus Estimate for the current year has increased 5.8% over the past month to $7.64.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Ross Stores. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Ross Stores may serve as a useful guide for investors.
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Ross Stores (ROST - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Ross Stores is one of 189 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ross Stores is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ROST's full-year earnings has moved 7.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, ROST has moved about 27.4% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 0.4%. This means that Ross Stores is outperforming the sector as a whole this year.
Tilly's (TLYS - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 166.8%.
In Tilly's' case, the consensus EPS estimate for the current year increased 76.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Ross Stores is a member of the Retail - Discount Stores industry, which includes 7 individual companies and currently sits at #63 in the Zacks Industry Rank. This group has gained an average of 12% so far this year, so ROST is performing better in this area.
In contrast, Tilly's falls under the Retail - Apparel and Shoes industry. Currently, this industry has 40 stocks and is ranked #84. Since the beginning of the year, the industry has moved -3.3%.
Ross Stores and Tilly's could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
Have you been paying attention to shares of Ross Stores (ROST - Free Report) ? Shares have been on the move with the stock up 12.1% over the past month. The stock hit a new 52-week high of $240.51 in the previous session. Ross Stores has gained 32.7% since the start of the year compared to the 0.7% gain for the Zacks Retail-Wholesale sector and the 14.1% return for the Zacks Retail - Discount Stores industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 21, 2026, Ross Stores reported EPS of $2.02 versus consensus estimate of $1.7.
For the current fiscal year, Ross Stores is expected to post earnings of $7.74 per share on $24.81 in revenues. This represents a 17.1% change in EPS on a 9.06% change in revenues. For the next fiscal year, the company is expected to earn $8.48 per share on $26.24 in revenues. This represents a year-over-year change of 9.55% and 5.73%, respectively.
Valuation MetricsThough Ross Stores has recently hit a 52-week high, what is next for Ross Stores? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ross Stores has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 30.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 29.3X. On a trailing cash flow basis, the stock currently trades at 29.1X versus its peer group's average of 22X. Additionally, the stock has a PEG ratio of 2.69. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ross Stores currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ross Stores fits the bill. Thus, it seems as though Ross Stores shares could still be poised for more gains ahead.
How Does ROST Stack Up to the Competition?Shares of ROST have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The TJX Companies, Inc. (TJX - Free Report) . TJX has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. The TJX Companies, Inc. beat our consensus estimate by 17.82%, and for the current fiscal year, TJX is expected to post earnings of $5.17 per share on revenue of $63.9 billion.
Shares of The TJX Companies, Inc. have gained 14.2% over the past month, and currently trade at a forward P/E of 32.57X and a P/CF of 27.5X.
The Retail - Discount Stores industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ROST and TJX, even beyond their own solid fundamental situation.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ross Stores (ROST - Free Report) Based in Dublin, CA, Ross Stores Inc. operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company operates its stores under the Ross Dress for Less (Ross) and dd’s DISCOUNTS names. The company’s stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas.
ROST is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ROST has a Growth Style Score of A, forecasting year-over-year earnings growth of 17.1% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.42 to $7.74 per share. ROST boasts an average earnings surprise of +10.2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROST should be on investors' short list.
