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Ross Stores (ROST) Ascends While Market Falls: Some Facts to Note

Ross Stores (ROST) closed at $149.29 in the latest trading session, marking a +1.3% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Heading into today, shares of the discount retailer had gained 11.76% over the past month, outpacing the Retail-Wholesale sector's gain of 1% and the S&P 500's gain of 3.15% in that time.

The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. The company's upcoming EPS is projected at $1.49, signifying a 12.88% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.24 billion, up 6.1% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.97 per share and revenue of $21.2 billion. These totals would mark changes of +7.37% and +4.05%, respectively, from last year.

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Investors should also take note of any recent adjustments to analyst estimates for Ross Stores. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.41% higher. Ross Stores is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Ross Stores is presently being traded at a Forward P/E ratio of 24.69. This valuation marks a premium compared to its industry's average Forward P/E of 21.19.

It's also important to note that ROST currently trades at a PEG ratio of 2.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.51.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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