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Ross Stores (ROST) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Ross Stores (ROST - Free Report) ended the recent trading session at $139.09, demonstrating a -0.46% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.

Shares of the discount retailer witnessed a loss of 6.72% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.51% and the S&P 500's gain of 2.6%.

Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. The company's earnings report is set to go public on March 4, 2025. The company is expected to report EPS of $1.65, down 9.34% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.94 billion, indicating a 1.41% downward movement from the same quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Ross Stores presently features a Zacks Rank of #2 (Buy).

Digging into valuation, Ross Stores currently has a Forward P/E ratio of 20.93. Its industry sports an average Forward P/E of 18.82, so one might conclude that Ross Stores is trading at a premium comparatively.

Investors should also note that ROST has a PEG ratio of 2.14 right now. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.14 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.

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


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