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Brookstone Capital Management lifted its position in Ross Stores, Inc. (NASDAQ:ROST – Free Report) by 6,226.7% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 64,596 shares of the apparel retailer’s stock after buying an additional 63,575 shares during the quarter. Brookstone Capital Management’s holdings in Ross Stores were worth $15,077,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Wellington Management Group LLP increased its position in shares of Ross Stores by 89.2% during the second quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer’s stock worth $1,408,148,000 after purchasing an additional 3,118,591 shares in the last quarter. United Capital Financial Advisors LLC acquired a new position in Ross Stores in the 2nd quarter valued at $3,390,000. NewEdge Advisors LLC boosted its holdings in Ross Stores by 40.6% in the 2nd quarter. NewEdge Advisors LLC now owns 17,353 shares of the apparel retailer’s stock valued at $3,694,000 after purchasing an additional 5,012 shares in the last quarter. Ontario Teachers Pension Plan Board acquired a new position in Ross Stores during the second quarter worth $34,867,000. Finally, Elevation Point Wealth Partners LLC lifted its stake in shares of Ross Stores by 459.5% in the first quarter. Elevation Point Wealth Partners LLC now owns 26,095 shares of the apparel retailer’s stock valued at $5,653,000 after purchasing an additional 21,431 shares during the period. 86.86% of the stock is owned by institutional investors and hedge funds.

Ross Stores Price Performance Shares of NASDAQ:ROST opened at $229.30 on Friday. Ross Stores, Inc. has a 12 month low of $156.41 and a 12 month high of $257.00. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.61 and a quick ratio of 0.98. The stock’s 50 day moving average price is $231.44 and its 200 day moving average price is $230.04. The stock has a market cap of $73.25 billion, a price-to-earnings ratio of 27.76, a PEG ratio of 1.99 and a beta of 0.83.

Ross Stores (NASDAQ:ROST – Get Free Report) last announced its earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, beating the consensus estimate of $1.95 by $0.71. Ross Stores had a return on equity of 39.29% and a net margin of 10.85%. The business had revenue of $6.26 billion during the quarter, compared to analysts’ expectations of $6.16 billion. During the same quarter last year, the business posted $1.56 earnings per share. The company’s quarterly revenue was up 13.3% on a year-over-year basis. Equities research analysts anticipate that Ross Stores, Inc. will post 8.15 earnings per share for the current fiscal year. Ross Stores Announces Dividend The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th were given a dividend of $0.4450 per share. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores’s payout ratio is 21.55%.

Wall Street Analysts Forecast Growth Several equities research analysts recently commented on the stock. Evercore set a $290.00 price objective on shares of Ross Stores in a research report on Friday, August 21st. Barclays increased their target price on Ross Stores from $260.00 to $298.00 and gave the stock an “overweight” rating in a research report on Friday, August 21st. Morgan Stanley increased their price objective on shares of Ross Stores from $231.00 to $234.00 and gave the stock an “equal weight” rating in a research report on Friday, August 21st. Telsey Advisory Group boosted their price target on Ross Stores from $265.00 to $280.00 and gave the stock an “outperform” rating in a research report on Friday, August 14th. Finally, Robert W. Baird boosted their price target on Ross Stores from $250.00 to $270.00 and gave the stock an “outperform” rating in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $264.61.

View Our Latest Research Report on Ross Stores

Insider Transactions at Ross Stores In other news, insider Stephen C. Brinkley sold 6,424 shares of the company’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $229.66, for a total transaction of $1,475,335.84. Following the completion of the sale, the insider owned 51,665 shares in the company, valued at approximately $11,865,383.90. This represents a 11.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO James Conroy sold 49,205 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $229.48, for a total value of $11,291,563.40. Following the completion of the transaction, the chief executive officer directly owned 134,349 shares in the company, valued at $30,830,408.52. The trade was a 26.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.10% of the stock is currently owned by corporate insiders.

About Ross Stores (Free Report)

Ross Stores, Inc is an off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, which offer branded and designer apparel, accessories, footwear, and home merchandise at discounts to regular department and specialty store prices.

Ross Stores also operates dd’s DISCOUNTS, a chain focused on value-oriented apparel, accessories, footwear, and home products. Both retail formats generally purchase merchandise opportunistically from manufacturers, department stores, and other suppliers, allowing the company to offer changing assortments and discounted prices.

Founded in 1950, Ross Stores serves customers across the United States through its store network and e-commerce presence.

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Ross Stores (ROST - Free Report) closed at $234.18 in the latest trading session, marking a -1.29% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.05%.

Shares of the discount retailer witnessed a gain of 2.03% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.75%, and outperforming the S&P 500's gain of 0.97%.

Market participants will be closely following the financial results of Ross Stores in its upcoming release. It is anticipated that the company will report an EPS of $1.82, marking a 15.19% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.2 billion, up 10.68% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.77 per share and a revenue of $25.65 billion, demonstrating changes of +32.68% and +12.76%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Ross Stores. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Ross Stores currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Ross Stores currently has a Forward P/E ratio of 27.05. This expresses a premium compared to the average Forward P/E of 21.73 of its industry.

It is also worth noting that ROST currently has a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 1.85.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. 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 a member of our Retail-Wholesale group, which includes 183 different companies and currently sits at #8 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 three months, the Zacks Consensus Estimate for ROST's full-year earnings has moved 5.3% 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 31.5% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have gained about 0% on average. This shows that Ross Stores is outperforming its peers so far this year.

Another stock in the Retail-Wholesale sector, Signet (SIG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 43%.

For Signet, the consensus EPS estimate for the current year has increased 10.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong 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 #6 in the Zacks Industry Rank. This group has gained an average of 13.3% so far this year, so ROST is performing better in this area.

On the other hand, Signet belongs to the Retail - Jewelry industry. This 6-stock industry is currently ranked #42. The industry has moved +37% year to date.

Investors with an interest in Retail-Wholesale stocks should continue to track Ross Stores and Signet. These stocks will be looking to continue their solid performance.

In the latest trading session, Ross Stores (ROST - Free Report) closed at $234.83, marking a +1.85% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.

The discount retailer's stock has climbed by 2.57% in the past month, exceeding the Retail-Wholesale sector's gain of 0.37% and the S&P 500's gain of 1.41%.

Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. On that day, Ross Stores is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 15.19%. Alongside, our most recent consensus estimate is anticipating revenue of $6.2 billion, indicating a 10.68% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.77 per share and revenue of $25.65 billion, indicating changes of +32.68% and +12.76%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Ross Stores. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Ross Stores presently features a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Ross Stores has a Forward P/E ratio of 26.28 right now. Its industry sports an average Forward P/E of 22.09, so one might conclude that Ross Stores is trading at a premium comparatively.

We can also see that ROST currently has a PEG ratio of 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 1.8 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 3% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.

Completes 2026 Store Growth Plans 

, /PRNewswire/ -- Ross Stores, Inc. (Nasdaq: ROST) recently opened 41 Ross Dress for Less® ("Ross") and 10 dd's DISCOUNTS® stores across 17 different states in September and October. These new locations complete the Company's store growth plans for fiscal 2026, with the addition of 115 new locations throughout the year. 

"Each new opening allows us to deliver compelling value to even more customers while creating new jobs and making a positive impact in local communities," said Richard Lietz, Executive Vice President, Property Development. "Building on the strong performance of our newer stores, we are excited to open our inaugural stores in Massachusetts while strengthening Ross Dress for Less' presence in New York and other existing markets. At dd's DISCOUNTS, we are pleased to further expand in our established core markets of California, Florida, and Texas."

Mr. Lietz added, "We remain confident in the long-term opportunities for both brands. As customers increasingly seek great brands at great prices, Ross' off-price offering continues to resonate, and we believe we are well positioned to grow to at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations over time."

In connection with these openings, Ross Stores continued its longstanding tradition of community engagement by making donations to local Boys & Girls Clubs and First Book literacy partners, helping support youth development and access to educational resources in the neighborhoods we serve.

Together, Ross Dress for Less and dd's DISCOUNTS currently operate a total of approximately 2,377 locations across 45 states, the District of Columbia, Guam, and Puerto Rico.

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 1,993 locations in 45 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 384 dd's DISCOUNTS® stores in 24 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.

Contact:

Connie Kao

Senior Vice President, Investor & Media Relations

(925) 965-4668

[email protected]

SOURCE Ross Stores, Inc.

For Immediate ReleaseChicago, IL – October 9, 2026 – Today, Zacks Equity as Ross Stores, Inc. (ROST - Free Report) , Target Corp. (TGT - Free Report) , Dollar General Corp. (DG - Free Report) and Dollar Tree, Inc. (DLTR - Free Report)

Industry: Discount Retail

Link: https://www.zacks.com/commentary/3002535/4-discount-retail-stocks-poised-to-win-big-as-value-shopping-booms

The Retail – Discount Stores industry remains a key pillar of the broader retail sector, supported by its focus on affordability, efficiency and consumer accessibility. Even as households contend with persistent inflationary pressures, elevated borrowing costs and shifting spending priorities, discount retailers continue to draw steady traffic through competitive pricing, compelling assortments and convenient store formats. 

Demand for value is also broadening beyond lower-income households, with middle- and higher-income consumers increasingly trading down on everyday essentials and select discretionary items. This wider appeal has helped industry participants to capture demand across income groups while reinforcing the relevance of the discount model.

At the same time, industry players are strengthening their digital and operational capabilities to improve convenience, customer engagement and profitability. Retailers are increasingly integrating e-commerce with flexible fulfillment options, including buy-online-pickup-in-store and curbside services, while using loyalty programs and data-driven merchandising to deepen customer relationships. 

Artificial intelligence is also gaining importance in areas such as demand forecasting, pricing and inventory planning. Meanwhile, private-label expansion and disciplined inventory management are helping support margins. As consumers continue to prioritize affordability without sacrificing convenience, companies with scale advantages, strong execution and efficient operations appear well positioned to navigate the evolving retail landscape.

Against this backdrop, Ross Stores, Inc. (ROST - Free Report) , Target Corp. (TGT - Free Report) , Dollar General Corp. (DG - Free Report) and Dollar Tree, Inc. (DLTR - Free Report) stand out as prominent players in the Retail-Discount Stores industry.

About the IndustryThe Retail – Discount Stores industry is an important part of the broader retail sector, serving consumers who seek affordable, value-for-money products. Industry participants offer a wide assortment of merchandise, including groceries, household goods, apparel, electronics, cleaning supplies and pet products, generally at prices lower than those of traditional retailers. Their business models emphasize cost-efficient operations, bulk purchasing, disciplined inventory management and streamlined supply chains to maintain competitive pricing. Discount retailers typically carry a combination of national and private-label brands, enabling them to meet the needs of a broad customer base. The industry has historically remained resilient during economic slowdowns, as consumers become more price-conscious and increasingly prioritize value-oriented shopping.

4 Key Industry Trends to WatchValue Seeking Expands Across U.S. Household Income Groups:Value remains the industry’s strongest demand driver as U.S. consumers balance resilient spending with persistent inflation and weakening confidence. Lower-income households remain especially budget constrained, while middle- and higher-income shoppers are increasingly seeking lower-priced alternatives for both essentials and discretionary goods. This broadening value orientation should continue to support traffic across discount formats. Retailers that combine sharp opening price points, compelling promotions and convenient locations with enough assortment breadth are likely to capture share, particularly as shoppers become more selective and purposeful.

Store Experience and Assortments Take Center Stage:Competition is shifting beyond price toward the overall quality of the shopping experience. Discount retailers are refreshing assortments, adding more relevant brands and categories, improving in-stock levels and making stores cleaner and easier to navigate. Stronger merchandising is creating a discovery element that encourages repeat visits and supports discretionary demand alongside everyday necessities. Store remodels, faster checkout and disciplined inventory planning should remain important as operators seek to turn increased traffic into a loyal customer base while improving productivity and reducing shrink across their store bases.

Digital, AI and Fulfillment Raise the Convenience Bar:Digital convenience is becoming a more important complement to the physical-store advantage of discount retailers. Delivery, same-day fulfillment and digitally supported shopping are helping operators reach new customers while engaging existing shoppers more effectively. At the same time, artificial intelligence is being deployed across demand forecasting, inventory positioning, personalization, merchandising and workflow automation. Retail media and data-driven customer engagement are also emerging as additional growth levers. Retailers that connect stores, digital channels and technology more effectively are better positioned to drive operational efficiency and improve convenience.

Cost Pressures Keep Margin Discipline in Sharp Focus:Margin management will remain a key watchpoint as retailers navigate tariffs, elevated fuel and freight costs, merchandise inflation and continued investment in pricing. The industry is responding through tighter inventory control, sourcing changes, vendor negotiations, assortment adjustments, shrink reduction and supply-chain productivity. Yet protecting affordability remains critical in a value-driven environment, limiting how aggressively higher costs can be passed to shoppers. Operators with greater scale, flexible sourcing and disciplined promotional strategies are better equipped to offset cost volatility while preserving their value proposition.

Zacks Industry Rank Indicates Bright ProspectsThe Zacks Retail - Discount Stores industry is housed within the broader Zacks Retail - Wholesale sector. The industry currently carries a Zacks Industry Rank #17, which places it in the top 7% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.

Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimate has risen 8.6%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry vs. Broader MarketThe Zacks Retail - Discount Stores industry has outperformed the broader Retail - Wholesale sector but underperformed the Zacks S&P 500 composite over the past year.

Stocks in this industry have collectively advanced 9.3%. Meanwhile, the Zacks Retail - Wholesale sector has declined 2.8%, but the S&P 500 has rallied 18.1% in the same time frame.

Industry's Current ValuationBased on a forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing retail stocks, the industry is currently trading at 27.53 compared with the S&P 500’s 19.99 and the sector’s 21.15.

Over the past five years, the industry has traded as high as 33.97X and as low as 21.19X, with the median being 27.64X.

4 Retail Discount Store Stocks to Keep a Close Eye OnDollar General:Dollar General continues to demonstrate strong business momentum, supported by its extensive store network, compelling value proposition and growing appeal across income groups. Healthy customer traffic, market share gains and improving operating margins highlight the strength of its business model and disciplined execution. 

The company is advancing store remodels, digital delivery capabilities, merchandising enhancements and supply-chain efficiencies to strengthen customer engagement and profitability. These initiatives, alongside continued store expansion and strong cash generation, position Dollar General well for sustained growth and long-term shareholder value creation.

The Zacks Consensus Estimate for Dollar General’s current fiscal-year sales and earnings per share (EPS) implies growth of 4.3% and 15.9%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 4.2% rise in sales and 5.8% growth in earnings. DG has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of this Zacks Rank #1 (Strong Buy) company have advanced 23.8% in the past year. You can see the complete list of today’s Zacks #1 Rank  stocks here

Ross Stores:Ross Stores continues to capitalize on strong demand for value-driven shopping, supported by its well-established Ross Dress for Less and dd's DISCOUNTS banners. Robust comparable sales growth, improving merchandise margins and rising customer traffic reflect the success of its merchandising, marketing and customer acquisition strategies. The company is strengthening vendor relationships, expanding access to desirable brands and enhancing the in-store shopping experience while accelerating store expansion. With encouraging customer engagement and considerable growth opportunities ahead, Ross Stores remains well-positioned to sustain its momentum and deliver long-term profitable growth.

The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and EPS implies growth of 12.8% and 32.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 6.8% rise in sales and 2% growth in earnings. ROST has a trailing four-quarter earnings surprise of 11.2%, on average. Shares of this Zacks Rank #2 (Buy) company have increased 50.4% in the past year.

Target:Target is gaining momentum from its refreshed growth strategy, supported by its differentiated brand portfolio, compelling value offerings and improving customer engagement. Stronger sales trends, rising store traffic and improving underlying profitability reflect progress in merchandising execution and operational efficiency. The company is investing in exclusive brand partnerships, product innovation, store modernization and AI-powered digital capabilities while strengthening its beauty, food and wellness categories. These initiatives, combined with expanding omnichannel capabilities and improving inventory reliability, position Target favorably for sustained.

The Zacks Consensus Estimate for Target’s current fiscal-year sales and EPS implies growth of 5.1% and 37.8%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 3.1% rise in sales but a 9.5% decline in earnings. TGT has a trailing four-quarter negative earnings surprise of 10.5%, on average. Shares of this Zacks Rank #2 company have rallied 69.4% in the past year.

Dollar Tree:Dollar Tree continues to strengthen its position in value retailing through an enhanced merchandise assortment, attractive pricing and improving store execution. Strong sales momentum, recovering customer traffic and improved profitability reflect the growing appeal of its multi-price strategy and broader product offerings across income groups. 

The company is investing in store renovations, merchandising innovation, targeted marketing and operational efficiencies to enhance the shopping experience and drive customer loyalty. Supported by disciplined inventory management, healthy cash generation and continued store expansion, Dollar Tree is well-positioned to deliver sustainable, profitable growth and long-term shareholder value.

The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and EPS implies growth of 6.6% and 36.4%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 6.1% rise in sales and 1.7% growth in earnings. DLTR has a trailing four-quarter negative earnings surprise of 12.2%, on average. Shares of this Zacks Rank #2 company have jumped 30.6% in the past year.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

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 operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company operates under the Ross Dress for Less and dd’s DISCOUNTS names. Its stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas. Fiscal 2025 revenues were $22.8 billion.

ROST is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Retail-Wholesale stock. ROST has a Momentum Style Score of B, and shares are up 0.1% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.95 to $8.77 per share. ROST also boasts an average earnings surprise of +11.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROST should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and 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 maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease 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 under the Ross Dress for Less and dd’s DISCOUNTS names. Its stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas. Fiscal 2025 revenues were $22.8 billion.

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 32.7% for the current fiscal year.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.99 to $8.77 per share. ROST boasts an average earnings surprise of +11.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROST should be on investors' short list.

Key Takeaways Ross Stores is expanding its store base to reach more customers and capture demand in new markets.Merchandise improvements and stronger operational execution can help drive customer traffic and spending.Expansion brings higher occupancy, labor and capital costs, while new stores may take time to mature. Ross Stores, Inc. (ROST - Free Report) is continuing to focus on store expansion and other strategic initiatives to support sales growth and strengthen its competitive position. The company’s off-price model, which offers branded merchandise at discounted prices, remains well-positioned to benefit from consumers’ ongoing focus on value.

Store expansion is an important growth driver for Ross Stores. Opening new locations allows the company to reach more customers, increase its geographic presence and capture demand in markets with additional room for growth. A larger store base can also support higher overall sales, provided new locations achieve productivity levels comparable to existing stores.

In addition to expansion, Ross Stores is working to improve store productivity and merchandise assortments. Enhancing the shopping experience, maintaining attractive branded offerings and improving operational execution can encourage customer traffic and spending. Investments in supply-chain capabilities and other infrastructure may also help the company move merchandise efficiently and respond to changing consumer preferences.

However, expansion comes with higher costs, including store occupancy, labor and capital expenditures. New stores may also take time to reach mature productivity levels. Moreover, intense competition in the off-price retail space and fluctuations in consumer spending could affect comparable-store sales.

Overall, store expansion, stronger merchandise execution and operational initiatives could provide additional avenues for Ross Stores to grow, although the benefits will depend on new-store productivity, consumer demand and the company’s ability to maintain its value-focused proposition.

ROST’s Price Performance, Valuation and EstimatesRoss Stores shares have gained 8.7% in the past six months against the industry’s 4.1% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, ROST trades at a forward price-to-earnings ratio of 27.13X compared with the industry’s average of 27.4X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ROST’s fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 32.7% and 2%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has increased in the past 30 days.

Image Source: Zacks Investment Research

Ross Stores currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ross Stores’ Peers: Briefing Their StrategiesDollar Tree, Inc. (DLTR - Free Report) has been making smart moves to enrich shoppers’ experience and bolster growth. The company’s strategic initiatives, including its ongoing store conversions and expansions. DLTR’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings bodes well. Dollar Tree is benefiting from its expansion efforts, driven by steady store openings and continued investments in distribution centers, which have been supporting revenue growth.

The TJX Companies, Inc. (TJX - Free Report) reinforces its position as a key value retailer by delivering a strong proposition that blends brand, fashion, quality and price across the global markets. TJX drives its expansion by increasing its store base in existing and new markets, leveraging its global scale and off-price model to offer fresh, branded merchandise at unmatched value. As part of its expansion strategy, TJX has been broadening its international footprint.

Burlington Stores, Inc. (BURL - Free Report) is focused on store expansion, flexible merchandise sourcing, improved store productivity and a stronger customer value proposition to drive long-term growth. Burlington’s off-price model continues to resonate with value-conscious shoppers, supported by stronger baskets, higher average unit sales and broad-based category performance. BURL’s 2.0 strategy is centered on strengthening its buying and planning capabilities, chasing sales trends through opportunistic and in-season purchases, localizing assortments and operating with greater supply-chain and store-level flexibility.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Ross Stores (ROST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Ross Stores currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.

Of the 21 recommendations that derive the current ABR, 15 are Strong Buy, representing 71.4% 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.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in 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.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is ROST Worth Investing In?Looking at the earnings estimate revisions for Ross Stores, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $8.77.

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 stocks from the Retail - Discount Stores sector have probably already heard of Dollar General (DG - Free Report) and Ross Stores (ROST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Dollar General and Ross Stores are holding a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

DG currently has a forward P/E ratio of 15.83, while ROST has a forward P/E of 25.83. We also note that DG has a PEG ratio of 1.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ROST currently has a PEG ratio of 1.77.

Another notable valuation metric for DG is its P/B ratio of 2.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ROST has a P/B of 10.73.

Based on these metrics and many more, DG holds a Value grade of A, while ROST has a Value grade of D.

Both DG and ROST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DG is the superior value option right now.

Key Takeaways Ross Stores sees strong closeout supply as mainstream retail softness sends more canceled goods to market.ROST ended Q2 with inventories up 18%, while store turns stayed strong, clearance stayed low and margins rose.Ross Stores expects modest back-half 2026 price increases while keeping prices below mainstream retailers. Ross Stores, Inc. (ROST - Free Report) appears well-positioned to capitalize on favorable merchandise availability across the off-price retail space. Management noted that closeout opportunities remain strong, supported partly by softness across mainstream retail, which is resulting in more canceled goods entering the market. This environment gives Ross Stores greater flexibility to secure compelling branded merchandise at attractive costs and strengthen its value proposition. The company also continues to gain access to better and more popular brands, potentially enhancing assortment quality and customer appeal while supporting its ongoing efforts to capture market share.

ROST’s inventory strategy should further help it benefit from the favorable sourcing backdrop. Consolidated inventories increased 18% at the end of the second quarter, as the company carried additional merchandise to support higher customer traffic and broaden assortments across stores. Despite higher inventory levels, in-store turns remained strong, clearance levels stayed low and merchandise margins improved. Importantly, management continues to maintain flexibility in its open-to-buy position, enabling ROST to pursue attractive closeout opportunities while retaining the ability to adjust inventory should consumer demand moderate.

The broader economic environment could also reinforce demand for Ross Stores’ value-focused model. With consumers facing inflationary pressures and higher fuel costs, management remains focused on keeping prices below mainstream retailers and maintaining compelling value across its merchandise assortment. The company has been cautious about passing through price increases and expects only modest average unit retail increases in the back half of 2026. Combined with abundant closeout supply, stronger vendor relationships and improving assortments, this disciplined pricing strategy could help ROST attract value-conscious shoppers and sustain momentum across the off-price segment.

ROST’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #2 (Buy) company have lost 1.4% in the past three months compared with the industry’s decline of 8.2%.

ROST Stock's Past Three-Month Performance
Image Source: Zacks Investment Research

Is ROST a Value Play Stock?ROST currently trades at a forward 12-month P/E ratio of 26.63X, which is higher than the industry average of 26.51X.

ROST P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Other Key PicksSuperior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Superior Group of Companies’ current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago figures. SGC delivered a trailing four-quarter earnings surprise of 90.2%, on average.

Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. It has a Zacks Rank of 2 at present. BOOT delivered an earnings surprise of 11.4% in the trailing four quarters, on average.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.5%, respectively, from the year-ago reported figures.

Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.

Ross Stores, Inc. (NASDAQ:ROST – Get Free Report) CEO James Conroy sold 49,205 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $229.48, for a total value of $11,291,563.40. Following the completion of the sale, the chief executive officer directly owned 134,349 shares in the company, valued at approximately $30,830,408.52. The trade was a 26.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Ross Stores Trading Down 0.6% ROST opened at $224.80 on Thursday. Ross Stores, Inc. has a 52 week low of $143.39 and a 52 week high of $257.00. The business has a fifty day simple moving average of $236.88 and a 200-day simple moving average of $226.42. The firm has a market cap of $71.81 billion, a P/E ratio of 27.22, a P/E/G ratio of 1.90 and a beta of 0.85. The company has a quick ratio of 0.98, a current ratio of 1.61 and a debt-to-equity ratio of 0.12.

Ross Stores (NASDAQ:ROST – Get Free Report) last issued its quarterly earnings data on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.95 by $0.71. The business had revenue of $6.26 billion during the quarter, compared to analysts’ expectations of $6.16 billion. Ross Stores had a return on equity of 39.29% and a net margin of 10.85%.The company’s revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.56 earnings per share. On average, equities analysts expect that Ross Stores, Inc. will post 8.15 earnings per share for the current year.

Ross Stores Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be given a $0.445 dividend. This represents a $1.78 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 8th. Ross Stores’s payout ratio is currently 21.55%. Hedge Funds Weigh In On Ross Stores Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hilton Head Capital Partners LLC purchased a new stake in shares of Ross Stores during the 4th quarter worth approximately $26,000. Bard Associates Inc. acquired a new stake in Ross Stores during the 4th quarter worth $31,000. Virtus Advisers LLC acquired a new stake in Ross Stores during the 2nd quarter worth $38,000. Twin Lakes Capital Management LLC purchased a new stake in Ross Stores in the second quarter valued at $41,000. Finally, Bell Investment Advisors Inc purchased a new position in shares of Ross Stores during the second quarter worth about $43,000. 86.86% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes Several analysts have recently issued reports on the stock. Morgan Stanley increased their price target on shares of Ross Stores from $231.00 to $234.00 and gave the stock an “equal weight” rating in a research report on Friday, August 21st. Telsey Advisory Group upped their target price on shares of Ross Stores from $265.00 to $280.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Wells Fargo & Company upped their target price on shares of Ross Stores from $245.00 to $248.00 and gave the stock an “equal weight” rating in a research note on Friday, August 21st. Truist Financial increased their target price on shares of Ross Stores from $290.00 to $310.00 and gave the stock a “buy” rating in a report on Friday, August 21st. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $270.00 price target on shares of Ross Stores in a research note on Friday, May 22nd. Fifteen investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Ross Stores currently has a consensus rating of “Moderate Buy” and a consensus target price of $263.76.

View Our Latest Stock Report on Ross Stores

Ross Stores Company Profile (Get Free Report)

Ross Stores, Inc (NASDAQ: ROST) is an off-price retailer that operates Ross Dress for Less and dd’s DISCOUNTS stores. The company sells a broad selection of apparel, accessories, footwear and home fashion merchandise for women, men and children, generally at prices below those of traditional department and specialty stores.

Ross Stores follows an opportunistic buying model, purchasing name-brand, designer and other merchandise from manufacturers and retailers at discounted prices. Its product assortment changes frequently and can include clothing, shoes, handbags, jewelry, beauty products, furniture, bedding, home décor and other household goods.

Founded in 1950, the company is headquartered in Dublin, California, and serves customers primarily through its store network across the United States and Guam.

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Bank of America Corp DE acquired a new stake in Ross Stores, Inc. (NASDAQ:ROST – Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 9,509,998 shares of the apparel retailer’s stock, valued at approximately $2,024,203,000. Bank of America Corp DE owned 2.96% of Ross Stores at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of ROST. Cooper Financial Group increased its holdings in Ross Stores by 2.8% during the 2nd quarter. Cooper Financial Group now owns 1,919 shares of the apparel retailer’s stock valued at $409,000 after purchasing an additional 52 shares in the last quarter. Independent Advisor Alliance increased its position in Ross Stores by 1.7% in the 4th quarter. Independent Advisor Alliance now owns 3,309 shares of the apparel retailer’s stock valued at $596,000 after acquiring an additional 55 shares in the last quarter. CYBER HORNET ETFs LLC raised its stake in shares of Ross Stores by 6.1% in the fourth quarter. CYBER HORNET ETFs LLC now owns 954 shares of the apparel retailer’s stock worth $172,000 after acquiring an additional 55 shares during the last quarter. MCF Advisors LLC lifted its position in shares of Ross Stores by 4.6% during the fourth quarter. MCF Advisors LLC now owns 1,292 shares of the apparel retailer’s stock worth $233,000 after purchasing an additional 57 shares in the last quarter. Finally, Caxton Associates LLP lifted its position in shares of Ross Stores by 4.3% during the first quarter. Caxton Associates LLP now owns 1,421 shares of the apparel retailer’s stock worth $308,000 after purchasing an additional 58 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company’s stock.

Ross Stores Stock Down 0.3% Ross Stores stock opened at $230.04 on Tuesday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.61 and a quick ratio of 0.98. The company’s 50-day moving average is $236.51 and its 200-day moving average is $226.10. The firm has a market capitalization of $73.49 billion, a PE ratio of 27.85, a P/E/G ratio of 1.94 and a beta of 0.85. Ross Stores, Inc. has a fifty-two week low of $143.39 and a fifty-two week high of $257.00.

Ross Stores (NASDAQ:ROST – Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.71. Ross Stores had a return on equity of 39.29% and a net margin of 10.85%.The business had revenue of $6.26 billion during the quarter, compared to analysts’ expectations of $6.16 billion. During the same quarter last year, the company posted $1.56 earnings per share. Ross Stores’s quarterly revenue was up 13.3% on a year-over-year basis. Sell-side analysts anticipate that Ross Stores, Inc. will post 8.15 earnings per share for the current year. Ross Stores Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be given a dividend of $0.445 per share. This represents a $1.78 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 8th. Ross Stores’s payout ratio is 21.55%.

Analyst Upgrades and Downgrades ROST has been the topic of a number of recent research reports. Evercore set a $290.00 price objective on Ross Stores in a research report on Friday, August 21st. The Goldman Sachs Group reissued a “buy” rating and set a $270.00 price target on shares of Ross Stores in a research report on Friday, May 22nd. Weiss Ratings reiterated a “buy (b)” rating on shares of Ross Stores in a research report on Monday, July 6th. Sanford C. Bernstein increased their price objective on Ross Stores from $230.00 to $240.00 and gave the stock a “market perform” rating in a report on Friday, August 21st. Finally, JPMorgan Chase & Co. lifted their price target on shares of Ross Stores from $262.00 to $272.00 and gave the company an “overweight” rating in a research note on Friday, August 21st. Fifteen equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $263.76.

Get Our Latest Stock Report on ROST

About Ross Stores (Free Report)

Ross Stores, Inc (NASDAQ: ROST) is an off-price retailer that operates Ross Dress for Less and dd’s DISCOUNTS stores. The company sells a broad selection of apparel, accessories, footwear and home fashion merchandise for women, men and children, generally at prices below those of traditional department and specialty stores.

Ross Stores follows an opportunistic buying model, purchasing name-brand, designer and other merchandise from manufacturers and retailers at discounted prices. Its product assortment changes frequently and can include clothing, shoes, handbags, jewelry, beauty products, furniture, bedding, home décor and other household goods.

Founded in 1950, the company is headquartered in Dublin, California, and serves customers primarily through its store network across the United States and Guam.

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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

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 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.

Of the 21 recommendations that derive the current ABR, 15 are Strong Buy, representing 71.4% 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.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

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.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

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.

Is ROST a Good Investment?Looking at the earnings estimate revisions for Ross Stores, the Zacks Consensus Estimate for the current year has increased 4.9% over the past month to $8.77.

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.

AlphaGrep UK Ltd bought a new stake in Ross Stores, Inc. (NASDAQ:ROST – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 3,607 shares of the apparel retailer’s stock, valued at approximately $768,000.

Other institutional investors have also recently made changes to their positions in the company. Hilton Head Capital Partners LLC acquired a new stake in Ross Stores in the fourth quarter valued at $26,000. Bard Associates Inc. acquired a new position in shares of Ross Stores during the 4th quarter worth about $31,000. Virtus Advisers LLC acquired a new position in shares of Ross Stores during the 2nd quarter worth about $38,000. Twin Lakes Capital Management LLC bought a new stake in shares of Ross Stores in the 2nd quarter valued at about $41,000. Finally, Bell Investment Advisors Inc bought a new stake in Ross Stores in the second quarter valued at approximately $43,000. Institutional investors and hedge funds own 86.86% of the company’s stock.

Ross Stores Trading Down 0.4% Shares of ROST stock opened at $230.69 on Friday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.98 and a current ratio of 1.61. The company has a market cap of $73.69 billion, a P/E ratio of 27.93, a PEG ratio of 1.95 and a beta of 0.85. The stock has a 50 day simple moving average of $234.52 and a two-hundred day simple moving average of $224.71. Ross Stores, Inc. has a fifty-two week low of $143.39 and a fifty-two week high of $257.00.

Ross Stores (NASDAQ:ROST – Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, beating the consensus estimate of $1.95 by $0.71. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. The firm had revenue of $6.26 billion during the quarter, compared to the consensus estimate of $6.16 billion. During the same period in the previous year, the firm posted $1.56 earnings per share. The business’s revenue was up 13.3% compared to the same quarter last year. Research analysts forecast that Ross Stores, Inc. will post 8.15 earnings per share for the current year. Ross Stores Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 8th will be given a $0.445 dividend. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $1.78 annualized dividend and a yield of 0.8%. Ross Stores’s dividend payout ratio (DPR) is presently 21.55%.

Ross Stores News Roundup Here are the key news stories impacting Ross Stores this week:

Positive Sentiment: Zacks raised its earnings forecasts across multiple future periods. Estimates increased for Q3 2027 through Q4 2028, Q1 2029, and FY2028. The FY2028 EPS forecast rose to $8.84 from $8.33, while the Q4 2028 estimate increased to $2.48 from $2.34. These revisions suggest analysts see better-than-expected earnings potential for Ross Stores. MarketBeat Ross Stores analyst estimates Positive Sentiment: Recent operating results provide support for the bullish estimate revisions. In its latest reported quarter, Ross Stores generated $6.26 billion in revenue, up 13.3% year over year, and posted $2.66 in EPS versus the $1.95 consensus estimate. The earnings beat and strong revenue growth indicate continued resilience in the off-price retail model. Neutral Sentiment: Zacks maintained a “Hold” rating. Although its forecasts improved, the unchanged rating signals that the analyst does not yet see enough risk-adjusted upside to recommend buying the shares. The current full-year EPS consensus remains $8.15. Zacks Ross Stores growth stock analysis Neutral Sentiment: The Q2 2026 earnings call transcript offers additional management commentary on sales trends, margins, inventory, store expansion and the outlook, but no specific new guidance details are provided in the article listing. Ross Stores Q2 2026 earnings call transcript Negative Sentiment: Valuation and limited analyst conviction remain headwinds. Ross Stores trades at roughly 28 times earnings, while its shares are below the 50-day moving average. With Zacks still at Hold and no fresh near-term catalyst, investors may be taking profits after the strong earnings performance. Analysts Set New Price Targets A number of research firms have recently issued reports on ROST. Truist Financial raised their target price on shares of Ross Stores from $290.00 to $310.00 and gave the stock a “buy” rating in a research note on Friday, August 21st. UBS Group upped their target price on Ross Stores from $232.00 to $239.00 and gave the company a “neutral” rating in a research report on Friday, August 21st. Telsey Advisory Group increased their target price on Ross Stores from $265.00 to $280.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Morgan Stanley lifted their price objective on shares of Ross Stores from $231.00 to $234.00 and gave the stock an “equal weight” rating in a research note on Friday, August 21st. Finally, Robert W. Baird lifted their price objective on Ross Stores from $250.00 to $270.00 and gave the company an “outperform” rating in a report on Friday, August 21st. Fifteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Ross Stores currently has a consensus rating of “Moderate Buy” and a consensus price target of $263.76.

View Our Latest Stock Analysis on Ross Stores

Ross Stores Company Profile (Free Report)

Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.

Recommended Stories Five stocks we like better than Ross Stores Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding ROST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Ross Stores, Inc. (NASDAQ:ROST – Free Report).

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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Costco?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Costco (COST - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $6.61 a share 30 days away from its upcoming earnings release on September 24, 2026.

By taking the percentage difference between the $6.61 Most Accurate Estimate and the $6.51 Zacks Consensus Estimate, Costco has an Earnings ESP of +1.45%. Investors should also know that COST is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

COST is part of a big group of Retail and Wholesale stocks that boast a positive ESP, and investors may want to take a look at Ross Stores (ROST - Free Report) as well.

Ross Stores, which is readying to report earnings on November 19, 2026, sits at a Zacks Rank #2 (Buy) right now. Its Most Accurate Estimate is currently $1.82 a share, and ROST is 86 days out from its next earnings report.

For Ross Stores, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.81 is +0.97%.

COST and ROST's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

A $100 million tariff refund sent Abercrombie surging in a single session while the same catalyst left Kohl's nearly unchanged and Ross investors shrugging. The gap between those reactions reveals something more important than the windfall itself.

Abercrombie & Fitch (NYSE:ANF | ANF Price Prediction) stock is surging 37% to $148.91 in mid-morning Wednesday trading after a large earnings beat, a $100 million tariff refund, and a raised full-year guidance. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is practically unchanged at $765.57, framing this as an idiosyncratic apparel repricing rather than a market move.

For peer context, Ross Stores (NASDAQ:ROST) stock is down 0.5% to $240.09 after its own tariff-refund quarter landed last week, while Kohl’s (NYSE:KSS) stock is up 0.4% to $17.75 after reporting the same catalyst before the open. Also notably, the State Street SPDR S&P Retail ETF (NYSE ARCA:XRT) is up 1% to $88.58.

Abercrombie stock had been down 13% year to date through Tuesday’s close, so today’s session is repricing a name the market had already written down.

Tariff Refund and Raised Guidance Drive the Move Abercrombie reported adjusted earnings of $4.17 per diluted share, well above the $1.99 consensus and its own prior guide of $1.80 to $2.00. Its net sales rose 5% to $1.27 billion.

Abercrombie’s operating margin came in at 19.9%, against 13.9% adjusted a year earlier. Its Abercrombie brand net sales rose 8% and its Hollister brand net sales rose 2%, with both banners setting second-quarter records.

The company received a $100 million pre-tax IEEPA tariff refund booked as a reduction of cost of sales, contributing $1.75 per diluted share. Abercrombie raised its full-year outlook to $13.10 to $13.60 per diluted share from a prior $10.20 to $11.00, with 220 basis points of the margin upgrade tied to the refund.

By region, Abercrombie’s Asia Pacific net sales grew 19% and its Americas net sales grew 5%, with EMEA net sales up 2%. APAC comparable sales grew 13%, so the geographic breadth is the piece of the quarter that would survive without the refund.

Reading Past the One-Time Windfall The tariff refund alone contributed $1.75 of Abercrombie’s $4.17 result and 220 basis points of its raised operating margin outlook. Abercrombie stock still gets credit for a 19.9% operating margin against 13.9% adjusted last year, which is a meaningful operational improvement even after backing out the refund benefit.

CEO Fran Horowitz stated that Abercrombie’s operating margin and earnings per share beat guidance in excess of the refund itself. Its Abercrombie brand delivered 4% comparable sales growth, marking a return to positive comps at its namesake banner.

The tension worth naming is that Abercrombie’s companywide comparable sales were flat. Its Hollister brand comps declined 3%, so reported net sales growth is being carried by AUR gains and new stores rather than by traffic through the existing base. That’s the line the bull case has to defend into the back half of fiscal 2026.

Same Catalyst, Very Different Reactions Ross stock is down 0.5% today because its tariff refund and guidance raise landed last Wednesday, and its shares had already run before this session. The Ross earnings report carried the stock to a 34% year-to-date gain through Tuesday’s close, so its tariff mechanic was priced in before Abercrombie reported.

Kohl’s stock is barely moved today despite reporting the same tariff-refund tailwind and raised guidance before the open. Coming into Wednesday, Kohl’s shares had been down 12% year to date, and investors appear reluctant to reward a tariff windfall bolted onto a still-declining top line.

The tariff mechanic is identical across all three retailers. The demand stories underneath diverge sharply, with Ross Stores’ traffic-led comps on one end and Kohl’s contracting revenue on the other, leaving Abercrombie somewhere in the middle with flat comps and a strong AUR story.

What to Watch Next Investors can watch for whether Abercrombie stock holds its gains through the close, since a 34% single-session move on a name that was negative year to date invites profit-taking. The next scheduled catalyst is the third-quarter report, where Abercrombie’s management guided to $2.90 to $3.20 in EPS on 5% to 6% sales growth.

For position sizing, this is a name that just repriced by a third in one session on a one-time item. Investors comfortable with Abercrombie’s operating story can scale in modestly rather than chase the gap higher, and can trim into strength if its comparable sales fail to turn positive next quarter. Sizing should reflect the reality that a rally built partly on a tariff refund can fade as quickly as it arrived.

Contact [email protected] for any questions or corrections.

$241.52

+1.04%

Ross Stores is showing signs that its recent correction may be complete as support holds across multiple timeframes, opening the door to renewed upside toward higher Fibonacci targets.

In this article:ROST

+1.04%

Support Holds After Record High

Ross Stores, Inc. (ROST), a U.S. off-price retailer, reported Q2 2026 results last Thursday. That led to a higher swing low of $228.05 for its stock and a successful test of support at the 100-day moving average and the 50-day moving average as well. Although that shorter average failed as support for one day, it was quickly reclaimed and successfully tested as support with the lows of Monday and last Friday. Moreover, the larger pattern within the weekly chart confirms the likely completion of the pullback following a new record high of $257.00 that was reached three weeks ago.

ROST daily chart shows likely completion of pullback. Source: TradingView

The weekly chart shows support being found during the pullback at the 20-week moving average, as it was during the pullback in May. Last week closed in the upper half of the period’s range following support near the 20-week average and established a bullish hammer candlestick pattern. Monday began the week inside last week’s range and given the magnitude of that range of $228.05 to $244.89, it wouldn’t be surprising to see ROST remain within the range this week before an attempt to rise above the $244.89 high is made.

ROST weekly chart shows bounce from 20-week moving average trend support. Source: TradingView

Multiple Timeframes Strengthen Signal Nonetheless, signs of the possible completion of the correction on multiple timeframes can increase the reliability of related signals. Alternatively, a decline below last week’s low would be bearish and confirm the failure of support and the likely continuation of the pullback to test lower support levels. One of the patterns present in the charts is that of a broadening formation. Therefore, the lower boundary line of the pattern would become a potential downside target if that low was triggered.

Upside Targets Extend Toward $279 An initial upside potential target is indicated by the 127.2% Fibonacci extension of the recent decline at $264.87. The 161.8% Fibonacci extension at $274.89 identifies a second upside target derived from the same swing. Also, a measured move target for a rising ABCD pattern is near $279.13.

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With over 20 years of experience in financial markets, Bruce is a seasoned finance MBA and CMT® charter holder. Having worked as head of trading strategy at hedge funds and a corporate advisor for trading firms, Bruce shares his expertise in futures to retail investors, providing actionable insights through both technical and fundamental analyses.

Latest news and analysis

Ross Stores (NASDAQ:ROST) reported strong second-quarter fiscal 2026 results, with sales rising 13% to $6.3 billion and comparable-store sales increasing 10%, driven primarily by higher transaction volume. The company said the quarter marked its second consecutive period of double-digit comparable-store sales growth and that sales strengthened through the quarter, with July producing the strongest performance.

Chief Executive Officer Jim Conroy said customer traffic remained the primary contributor to the comparable-sales increase. The company saw gains from new shoppers, returning customers who had not visited in some time, and more frequent trips from existing customers. Those customers also spent more per visit, Conroy said.

“The underlying metrics that we see are just extremely positive across the board,” Conroy said, pointing to broad-based growth across customer groups, merchandise categories and geographic markets. Sales strength across categories and regions Ross said its customer gains spanned income levels, age groups and ethnicities, including younger shoppers. Conroy attributed the results to customer-acquisition efforts, marketing, improved store execution, broader merchandise assortments and expanded vendor relationships.

At the Ross banner, results were broad-based across merchandise categories and geographies. Home and cosmetics were the strongest businesses in the quarter, while the Midwest was the strongest region. The dd’s DISCOUNTS chain also posted solid and broad-based performance across merchandise and geographic areas, management said.

Conroy said the company’s merchant teams have added vendors and brands, while store teams have improved organization, inventory recovery and checkout queues. He said Ross is also gaining access to more popular brands, though not necessarily at higher price points, and remains committed to maintaining value-oriented pricing.

“We absolutely want to have the best values in our store,” Conroy said. He added that the company expects modest, low-single-digit average unit retail increases during the second half of the year.

Margins benefited from tariff refunds Second-quarter gross margin increased 625 basis points from the prior year, including 405 basis points of tariff refunds. Merchandise margin rose 110 basis points, while distribution costs declined 100 basis points, which the company attributed to favorable timing of packaway-related expenses, higher productivity and the anniversary of prior-year tariff-related processing costs.

Occupancy costs leveraged by 25 basis points. Those gains were partly offset by a 5-basis-point increase in buying costs from higher incentives and a 10-basis-point increase in freight costs due to higher fuel prices.

SG&A expense deleveraged by 15 basis points because of higher incentive compensation tied to earnings outperformance. Operating margin rose 610 basis points; excluding tariff refunds, operating margin increased 205 basis points year over year.

Net income increased to $851 million, or $2.66 per share, from $508 million, or $1.56 per share, a year earlier. For the first six months of fiscal 2026, sales rose 17% to $12.3 billion, comparable-store sales increased 13%, and earnings per share reached $4.69, compared with $3.03 in the prior-year period.

The company said its second-quarter and first-half results included $253 million, or about $0.60 per share, in tariff refunds.

Inventory and store growth plans Consolidated inventory was up 18% at quarter-end. Packaway inventory accounted for 36% of total inventory, compared with 38% a year earlier. Management said the inventory position supports elevated customer traffic and a broader selling-floor assortment while maintaining fast inventory turns.

Group President and Chief Operating Officer Michael Hartshorn said store-level inventory increased partly to support stronger demand, but in-store turns remained strong and clearance levels stayed low. He said Ross retains flexibility in its open-to-buy plans to respond to closeout opportunities or adjust inventory if demand changes.

Ross raised its planned store openings for fiscal 2026 to 115 locations from 110 previously, along with approximately five to 10 relocations and closures. The company expects to open 51 stores in the third quarter, including 41 Ross locations and 10 dd’s DISCOUNTS stores.

Hartshorn said recent openings have performed ahead of the company’s expectations, including in the Northeast, where Ross is continuing its expansion. The company’s long-term model contemplates approximately 5% annual unit growth, he said.

Raised second-half outlook Ross raised its outlook for both the third and fourth quarters despite more difficult comparisons in the second half.

Third-quarter comparable-store sales are expected to rise 6% to 7%, with total sales up 9% to 11%. Third-quarter earnings per share are forecast at $1.75 to $1.83, compared with $1.58 a year earlier. Fourth-quarter comparable-store sales are projected to increase 4% to 5%, following a 9% increase in the prior-year period. Fourth-quarter earnings per share are expected to range from $2.17 to $2.26, compared with $2.00 last year. Full-year earnings per share are now forecast at $8.61 to $8.77, versus $6.61 in fiscal 2025, including approximately $0.60 per share from tariff refunds. Chief Financial Officer Bill Sheehan said the third-quarter operating-margin outlook of 11.7% to 12.0%, versus 11.6% last year, assumes leverage from comparable-store sales growth and slightly higher merchandise margins. Higher fuel-related freight expense is expected to partially offset those gains.

Ross repurchased approximately 1.4 million shares for $319 million during the quarter and said it remains on track to repurchase $1.275 billion of stock during fiscal 2026 under its current authorization.

Management said it plans to continue testing and scaling initiatives across merchandising, marketing and store operations, while keeping investments within its established financial model. Conroy said the company believes it is still in the early stages of realizing the potential of its growth initiatives.

About Ross Stores (NASDAQ:ROST) Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.

Key Takeaways ROST's Q2 earnings topped estimates as sales rose 13% y/y on strong traffic and 10% comparable store growth.ROST expanded margins as tariff refunds, merchandise margins and lower distribution costs boosted the results.ROST raised its fiscal 2026 outlook with more store openings and higher comparable sales expectations. Ross Stores, Inc. (ROST - Free Report) reported second-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 fiscal second-quarter earnings of $2.06 per share, beating the Zacks Consensus Estimate of $1.93 by 6.7% and exceeding the company’s guidance of $1.85-$1.93 per share.

The company delivered strong operating momentum as total sales rose 13% year over year to $6.27 billion, exceeding the Zacks Consensus Estimate of $6.14 billion by 1.9%. Sales growth was supported by strong customer traffic and a 10% comparable store sales increase. Customer acquisition, higher shopping frequency and improved merchandise offerings contributed to the quarter’s performance. Our model predicted comps growth of 6.9% for the second quarter of fiscal 2026.

Shares of the Zacks Rank #3 (Hold) company have rallied 27.1% in the year-to-date period compared with the industry's 11.4% growth.

Image Source: Zacks Investment Research

ROST Expands Sales Momentum With Traffic GrowthRoss Stores saw comparable store sales increase 10% year over year in the second quarter of fiscal 2026, primarily driven by higher transaction volume. Management noted strength from new customers, returning lapsed customers and increased engagement from existing shoppers.

The company reported broad-based performance across merchandise categories and geographies. Home and cosmetics were the strongest businesses during the quarter, while the ladies business continued to show solid growth, particularly among younger shoppers.

Ross Stores Improves Merchandise & Store ExecutionRoss Stores benefited from stronger merchandise availability and improved vendor relationships. Management highlighted increased access to brands and continued opportunities to expand assortments while maintaining the company’s value-focused positioning.

Inventory at the end of the quarter increased 18% year over year, with packaway inventory representing 36% of the total inventory compared with 38% a year ago. The company said that inventory levels supported higher customer demand while maintaining strong inventory turns and merchandise margins.

ROST Expands Margins Despite Cost PressuresThe gross margin improved 625 basis points (bps), helped by tariff refunds, higher merchandise margins and lower distribution costs. These gains were partially offset by higher buying costs, increased incentives and freight cost pressure from higher fuel prices.

Our model predicted gross profit to increase 14.5% year over year and the gross margin to expand 140 bps to 29% for the fiscal second quarter.

ROST reported the fiscal second-quarter operating income of $1.1 billion compared with $638.3 million in the prior-year period. The operating margin expanded 610 bps, including a 405-bps benefit from tariff refunds. Excluding that benefit, the operating margin improved 205 bps year over year.

Our model predicted 20.8% year-over-year growth in operating income, with a 130-bps operating margin expansion to 12.8% in the fiscal second quarter.

ROST Strengthens Shareholder Returns & LiquidityThe company ended the fiscal second quarter with cash and cash equivalents of $4.3 billion, and total stockholders’ equity of $6.7 billion. Management emphasized continued investment in growth initiatives, store expansion and customer experience improvements. The operating cash flow reached $1.7 billion for the first half of fiscal 2026.

ROST continued its capital return program in the fiscal second quarter, repurchasing 1.4 million shares for $319 million under its two-year $2.55-billion authorization. The company remains on track to repurchase $1.275 billion of stock in fiscal 2026.

Ross Stores Raises FY26 OutlookROST increased its store opening plans for fiscal 2026 to 115 locations, including 90 Ross Dress for Less stores and 25 dd’s DISCOUNTS locations. The company said that the recent store openings in existing and newer markets have performed ahead of expectations.

Management raised its outlook for the back half of fiscal 2026. Comparable store sales are expected to increase 6-7% in the third quarter of fiscal 2026 and 4-5% in the fourth quarter. Third-quarter earnings are projected at $1.75-$1.83 per share, whereas fourth-quarter earnings are expected at $2.17-$2.26 per share.

ROST Maintains Growth Strategy AheadRoss Stores expects ongoing initiatives across merchandising, marketing and store operations to support continued sales growth. Management noted that many of these efforts remain in early stages and are being expanded through testing across stores and categories.

The company continues to focus on improving brand relevance, expanding assortments and enhancing the shopping experience. Management believes that these actions can help drive additional market share gains while maintaining the company’s value proposition.

Stocks to considerWe have highlighted three better-ranked stocks, namely, Target Corporation (TGT - Free Report) , Dollar Tree Inc. (DLTR - Free Report) and Dollar General Corporation (DG - Free Report) .

Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.4% and 11.4%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.

Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Dollar Tree’s current financial-year sales and EPS indicates growth of 6.5% and 21.7%, respectively, from the year-ago reported numbers. DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.

Dollar General is one of the largest discount retailers in the United States, selling low-priced merchandise, typically $10 or less. The company currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Dollar General’s current financial-year sales and EPS is expected to rise 3.9% and 7.6%, respectively, from the year-ago reported figures. DG delivered a trailing four-quarter earnings surprise of 21%, on average.

Ross Stores (ROST) is experiencing a notable rise in trading following a robust Q2 report. The off-price retailer surpassed expectations on both revenue and ear

Ross Stores Today

$241.47 +12.48 (+5.45%)

As of 12:46 PM Eastern

$143.39▼

$257.000.74%

33.72

$260.41

Ross Stores NASDAQ: ROST stock fell over 2% before it reported its Q2 2026 earnings. That's when the story changed. ROST jumped roughly 8% in extended trading after the company delivered results that analysts deemed better-than-expected.

The report came the day after TJX Companies NYSE: TJX delivered its earnings report. The headline numbers were fine, but the company reported some softness in its Marmaxx business (the combination of TJMaxx, Marshalls, and Sierra stores, as well as their e-commerce sales), which only delivered a 1% increase in comparable store sales.

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With TJX falling, it was logical that ROST was down ahead of its own report. If one off-price retailer reported softness, it's not a stretch to believe it would carry across the category.

Why Weak Retail Sales Raised Concerns for Ross StoresThe market's reflex to punish TJX before it even looked past the headline didn't come out of nowhere. It was a reaction to the retail sales report that dropped on Aug. 14.

The Commerce Department reported that retail and food services sales fell 0.6% in July from the prior month, pulling back after a modest gain in June. That was the steepest monthly drop since May 2025, and it landed well below the roughly flat reading Wall Street had penciled in.

In dollar terms, the numbers weren't any better. Total seasonally adjusted sales came in at $763.6 billion, down from a revised $768.1 billion in June. Stripping out the volatile categories doesn't improve the picture much. Excluding gas stations and auto dealers, sales still fell 0.3%, indicating the weakness persisted even after those swings.

The category breakdown showed consumers pulling back across the board.

Motor vehicle and parts dealers posted the sharpest monthly decline among major categories, falling 1.8%

Non-store retailers, including online shopping, fell 2.2%

Gasoline stations fell 0.9%

However, a handful of categories bucked the trend. One of those was clothing and accessories, which rose 1.9%. That's why the reaction to the TJX report was swift.

It's a classic gap between perception and fundamentals. The fundamentals said TJX beat estimates and raised full-year guidance. The perception said, "discount retailer, slowdown, here we go again." Perception won the first trading session. It took Ross Stores a day later to force a rethink.

Ross Stores Turns the Tables on TJXRoss Stores and the TJX Companies compete for the same value-driven, trade-down shopper. In the past, that meant the results from TJX and subsequent price action tended to be a preview for ROST.

That appeared to be the case again. TJX reported earnings on Aug. 19 and beat analysts' estimates on the top and bottom lines. The stock fell anyway, closing down nearly 3% after tumbling as much as 6% in early trading.

Guidance did most of the damage. TJX's third-quarter earnings per share (EPS) outlook of $1.30 to $1.32 missed the $1.35 analysts wanted. CEO Ernie Herrman didn't help matters, calling a slowdown at TJ Maxx and Marshalls "self-inflicted." Comparable sales at Marmaxx, the company's largest division, grew just 1%, down sharply from 6% growth the prior quarter. The market skipped the nuance. It just heard "slowdown."

Ross Stores Delivers a Strong Q2 2026 Earnings BeatSo what was it that got analysts bidding ROST higher? Total sales for the quarter increased 13% versus last year, with comparable store sales up a very strong 10%, primarily driven by customer traffic.

Earnings told a similar story, though with an asterisk worth flagging. Earnings per share came in at $2.66, including an approximate 60-cent-per-share benefit from IEEPA tariff refunds, well above guidance of $1.85 to $1.93. However, even with that one-time refund stripped out, the beat still holds. Excluding the tariff benefit, operating margin increased 205 basis points, well above the company's plan for an increase of 130 to 150 basis points.

CEO Jim Conroy framed the quarter as broad-based rather than concentrated in one category or region: "We achieved stellar sales and earnings growth in the second quarter... comparable store sales growth once again primarily driven by customer traffic," he said, adding that the gains came from both new customers and higher engagement among existing ones.

Ross Stores Boosts Guidance and Plans More Store OpeningsRoss backed the quarter with expansion plans and a raised outlook. The company opened 47 new stores during the quarter and used the report to increase its 2026 new store opening plan to 115 locations. Full-year EPS guidance moved up to $8.61 to $8.77, and third-quarter comparable sales are now expected to run 6% to 7%.

The stronger outlook reinforces the idea that Ross expects its recent sales momentum to carry into the second half of the year. Combined with the accelerated store-opening plan, management is signaling confidence that demand from value-focused shoppers remains healthy.

Can Ross Stores Stock Rally Back to Record Highs?89th Percentile

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That's where Ross Stores flipped the script. Beating on the top and bottom lines and raising its guidance was what analysts needed to hear.

TJX also edged higher in extended trading following Ross Stores' report. It wasn't much of a gain. But it appears analysts have become more focused on the broader story that the value-focused shopper hasn't gone away.

The post-earnings surge also pushed ROST beyond where many analysts had valued the stock heading into the report. Several analysts had issued new price targets well above the consensus in the month leading up to the earnings report. If more analysts follow suit in the coming days, ROST could be on its way back to new all-time highs.

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Stock futures are pointing higher Friday after the major indexes lost ground Thursday; Treasury yields are holding steady; bitcoin and cryptocurrency-related stocks are extending their recent winning streak; SpaceX is on pace to close out the week in the red; and Ross Stores stock is surging after a strong earnings report. Here’s what you need to know today.

Stocks Futures Climb After Thursday’s Sell-Off
Stock futures are moving higher this morning after a steep downturn yesterday. Futures tied to the Dow Jones Industrial Average and the tech-heavy Nasdaq were up 0.6% recently, while S&P 500 futures added 0.4%. Cryptocurrency-related stocks were leading the charge as bitcoin rallied to its highest level in three months (more on that below). All three of the major indexes lost ground in yesterday’s session as bond yields marched higher. The S&P 500 has declined nearly 2% so far this week, putting the benchmark index on track to snap a three-week winning streak. WTI oil futures were holding steady just under $87 per barrel, while gold futures rose nearly 2% to $4,650 an ounce, their highest level since May.

Bond Yields Steady as Government Mulls More Repurchases
Bond yields are holding steady after climbing yesterday, with the government considering boosting its planned Treasury repurchases. The latest moves have erased a brief decline earlier in the week following the Treasury Department’s announcement of a plan to buy back a larger amount of longer-dated bonds. The yield on the 10-year Treasury note, which affects interest rates on consumer loans, was just under 4.70% this morning. U.S. Treasury Secretary Scott Bessent told CNBC Thursday he may look to raise ​the government’s Treasury repurchases.1 UBS analysts said in a note yesterday that the Treasury’s move “buys time, not a solution.”2

Bitcoin and Crypto-Related Stocks Extend Gains
Bitcoin is rallying for a third straight day, trading just under $77,000 recently after surging above $79,000 overnight to its highest level in three months. Bitcoin has gained about 20% this week following positive comments from President Donald Trump and a series of small regulatory wins for the cryptocurrency industry. Shares of cryptocurrency-related stocks also continued their climb, with shares of major bitcoin holder Strategy (MSTR) surging 7% premarket and Coinbase (COIN) up roughly 5%.

SpaceX Is on Pace to Finish the Week in the Red
Some of the shine has come off SpaceX (SPCX). Shares of Elon Musk’s rocket, connectivity and AI company fell 4% yesterday to close at $134, a dollar under their mid-June IPO price. Thursday’s retreat marked their first close below that level since Aug. 7; the stock had this month clawed its way back from record lows to come within cents of the $150 at which they started trading on the day the offering hit the market. SpaceX is still up about 24% this month, but it’s on pace to finish this week in the red. The stock was up 1% in recent premarket trading.

Ross Stores Stock Pops on Strong Earnings
Shares of Ross Stores (ROST) are surging 8% in premarket trading after the off-price retailer posted quarterly results that topped Wall Street estimates and raised its outlook. Ross Stores said it now expects earnings per share of $8.61 to $8.77 for the full year, up from $7.50 to $7.74 previously, thanks in part to a boost from tariff refunds. Ross also raised the number of new stores it plans to open this year to 115 from 110, with CEO Jim Conroy telling investors Ross Stores believes it is “well positioned to capture additional market share.” The company reported second-quarter EPS of $2.66 on a 13% year-over-year rise in sales to $6.26 billion, ahead of analysts’ projections.3

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