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Ross Stores (ROST) Declines More Than Market: Some Information for Investors

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Ross Stores (ROST - Free Report) closed the latest trading day at $143.78, indicating a -0.79% change from the previous session's end. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.06%.

Shares of the discount retailer witnessed a loss of 2.9% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.16% and the S&P 500's gain of 1.96%.

Market participants will be closely following the financial results of Ross Stores in its upcoming release. The company's upcoming EPS is projected at $1.49, signifying a 12.88% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.24 billion, up 6.16% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.97 per share and a revenue of $21.2 billion, indicating changes of +7.37% and +4.05%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ross Stores. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ross Stores presently features a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Ross Stores has a Forward P/E ratio of 24.28 right now. This expresses a premium compared to the average Forward P/E of 21.57 of its industry.

Investors should also note that ROST has a PEG ratio of 2.54 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.43 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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