Ross Stores (ROST) closed the most recent trading day at $222.88, moving +1.03% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
Shares of the discount retailer witnessed a loss of 7.74% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.24%, and the S&P 500’s gain of 2.2%.
The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. The company is predicted to post an EPS of $1.9, indicating a 21.79% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.1 billion, indicating a 10.36% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.74 per share and a revenue of $24.81 billion, representing changes of +17.1% and +9.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Ross Stores should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Ross Stores is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Ross Stores currently has a Forward P/E ratio of 28.51. For comparison, its industry has an average Forward P/E of 27.45, which means Ross Stores is trading at a premium to the group.
We can additionally observe that ROST currently boasts a PEG ratio of 2.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. ROST’s industry had an average PEG ratio of 2.48 as of yesterday’s close.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 250+ industries.
