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Here's Why Ross Stores (ROST) is a Strong Value Stock

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.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Ross Stores (ROST)

Based in Dublin, CA, Ross Stores Inc. operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company operates its stores under the Ross Dress for Less (Ross) and dd’s DISCOUNTS names. The company’s stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas.

ROST sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Retail - Discount Stores industry's P/E of 21X, shares of Ross Stores are trading at a forward P/E of 24.2X. ROST also has a PEG Ratio of 2.5, a Price/Cash Flow ratio of 21.2X, and a Price/Sales ratio of 2.3X.

A company's earnings performance is important for value investors as well. For fiscal 2025, nine analysts revised their earnings estimate higher in the last 60 days for ROST, while the Zacks Consensus Estimate has increased $0.08 to $5.97 per share. ROST also holds an average earnings surprise of 10.6%.

ROST should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Ross Stores, Inc. (ROST) : Free Stock Analysis Report

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