In the latest trading session, Ross Stores (ROST) closed at $135.76, marking a +1.3% move from the previous day. This change outpaced the S&P 500's 0.06% gain on the day. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Shares of the discount retailer witnessed a gain of 4.81% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.04%, and the S&P 500's gain of 5.88%.
The upcoming earnings release of Ross Stores will be of great interest to investors. The company is expected to report EPS of $1.54, down 3.14% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.53 billion, indicating a 4.68% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.23 per share and a revenue of $21.99 billion, indicating changes of -1.42% and +4.07%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Ross Stores. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. Ross Stores is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, Ross Stores is at present trading with a Forward P/E ratio of 21.5. This signifies a discount in comparison to the average Forward P/E of 21.82 for its industry.
Investors should also note that ROST has a PEG ratio of 2.56 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 was holding an average PEG ratio of 2.64 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 15% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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