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Ross Stores (ROST) Advances While Market Declines: Some Information for Investors

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The most recent trading session ended with Ross Stores (ROST - Free Report) standing at $142.88, reflecting a +0.68% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.5% for the day. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 1.28%.

Shares of the discount retailer witnessed a loss of 2.29% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.37% and the S&P 500's gain of 0.1%.

The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. In that report, analysts expect Ross Stores to post earnings of $1.49 per share. This would mark year-over-year growth of 12.88%. Meanwhile, our latest consensus estimate is calling for revenue of $5.24 billion, up 6.16% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.97 per share and revenue of $21.2 billion. These totals would mark changes of +7.37% and +4.05%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ross Stores. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Ross Stores is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Ross Stores is presently being traded at a Forward P/E ratio of 23.77. This indicates a premium in contrast to its industry's Forward P/E of 21.43.

We can also see that ROST currently has a PEG ratio of 2.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.31.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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