In the latest trading session, Ross Stores (ROST) closed at $127.59, marking a -2.73% move from the previous day. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.
Coming into today, shares of the discount retailer had gained 0.02% in the past month. In that same time, the Retail-Wholesale sector gained 4.14%, while the S&P 500 gained 4.97%.
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 $1.54, signifying a 3.14% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.53 billion, up 4.68% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.23 per share and a revenue of $21.99 billion, signifying shifts of -1.42% and +4.07%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Ross Stores. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. Ross Stores presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Ross Stores currently has a Forward P/E ratio of 21.04. For comparison, its industry has an average Forward P/E of 21.39, which means Ross Stores is trading at a discount to the group.
Also, we should mention that ROST has a PEG ratio of 2.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.81.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 38% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Ross Stores, Inc. (ROST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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