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Ross Stores (ROST) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Ross Stores (ROST - Free Report) closed at $147.78, marking a +1.05% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.

Coming into today, shares of the discount retailer had lost 2.71% in the past month. In that same time, the Retail-Wholesale sector gained 3.09%, while the S&P 500 gained 3.48%.

Investors will be eagerly watching for the performance of Ross Stores in its upcoming earnings disclosure. On that day, Ross Stores is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 6.02%. At the same time, our most recent consensus estimate is projecting a revenue of $5.17 billion, reflecting a 5.01% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.20 per share and a revenue of $21.27 billion, representing changes of +11.51% and +4.39%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Ross Stores boasts a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Ross Stores has a Forward P/E ratio of 23.59 right now. This signifies a premium in comparison to the average Forward P/E of 20.59 for its industry.

Meanwhile, ROST's PEG ratio is currently 2.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.38.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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