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

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In the latest market close, Ross Stores (ROST - Free Report) reached $144.22, with a -0.11% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.56%.

The discount retailer's stock has dropped by 5.52% in the past month, falling short of the Retail-Wholesale sector's loss of 0.9% and the S&P 500's gain of 1.39%.

The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. The company's upcoming EPS is projected at $1.41, signifying a 6.02% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.17 billion, up 5.01% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.20 per share and revenue of $21.27 billion. These totals would mark changes of +11.51% and +4.39%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate remained stagnant. Ross Stores is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Ross Stores currently has a Forward P/E ratio of 23.29. This signifies a premium in comparison to the average Forward P/E of 20.41 for its industry.

Also, we should mention that ROST has a PEG ratio of 2.35. 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. 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. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.

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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