Ross Stores (ROST) ended the recent trading session at $156.17, demonstrating a +1.94% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.39%.
Shares of the discount retailer have appreciated by 1.64% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 0.29%, and lagging the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of Ross Stores in its upcoming release. On that day, Ross Stores is projected to report earnings of $1.4 per share, which would represent a year-over-year decline of 5.41%. In the meantime, our current consensus estimate forecasts the revenue to be $5.38 billion, indicating a 6.18% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.2 per share and a revenue of $22.12 billion, indicating changes of -1.9% and +4.67%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates 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 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, 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 has moved 0.04% lower. Ross Stores presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Ross Stores is at present trading with a Forward P/E ratio of 24.7. This signifies a premium in comparison to the average Forward P/E of 22.88 for its industry.
We can additionally observe that ROST currently boasts a PEG ratio of 2.94. 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. The Retail - Discount Stores industry had an average PEG ratio of 2.57 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 64, positioning it in the top 26% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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