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

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In the latest trading session, Ross Stores (ROST - Free Report) closed at $142.33, marking a +1.33% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.61%. Meanwhile, the Dow experienced a drop of 0.47%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

Prior to today's trading, shares of the discount retailer had lost 4.95% over the past month. This has lagged the Retail-Wholesale sector's gain of 5% and the S&P 500's gain of 3.07% in that time.

The upcoming earnings release of Ross Stores will be of great interest to investors. The company's earnings report is expected on November 21, 2024. In that report, analysts expect Ross Stores to post earnings of $1.41 per share. This would mark year-over-year growth of 6.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.16 billion, up 4.8% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.12 per share and revenue of $21.26 billion. These totals would mark changes of +10.07% and +4.34%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Ross Stores. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Ross Stores is currently a Zacks Rank #3 (Hold).

In terms of valuation, Ross Stores is presently being traded at a Forward P/E ratio of 22.97. This represents a premium compared to its industry's average Forward P/E of 19.96.

One should further note that ROST currently holds a PEG ratio of 2.31. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.31 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 41% of all 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.

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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