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Ross Stores (ROST) closed the most recent trading day at $149, moving -0.01% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.
The discount retailer's stock has climbed by 0.28% in the past month, exceeding the Retail-Wholesale sector's loss of 2.84% and the S&P 500's loss of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. In that report, analysts expect Ross Stores to post earnings of $1.65 per share. This would mark a year-over-year decline of 9.34%. In the meantime, our current consensus estimate forecasts the revenue to be $5.92 billion, indicating a 1.77% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.17 per share and revenue of $21.13 billion, indicating changes of +10.97% and +3.71%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Ross Stores. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Ross Stores is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Ross Stores is currently trading at a Forward P/E ratio of 24.13. This denotes a premium relative to the industry's average Forward P/E of 20.35.
It is also worth noting that ROST currently has a PEG ratio of 2.46. 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 had an average PEG ratio of 2.24 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.