Have you been paying attention to shares of Ross Stores (ROST)? Shares have been on the move with the stock up 8.3% over the past month. The stock hit a new 52-week high of $176 in the previous session. Ross Stores has gained 15.1% since the start of the year compared to the 3.7% gain for the Zacks Retail-Wholesale sector and the 2.5% return for the Zacks Retail - Discount Stores industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 20, 2025, Ross Stores reported EPS of $1.58 versus consensus estimate of $1.4.
For the current fiscal year, Ross Stores is expected to post earnings of $6.36 per share on $22.27 in revenues. This represents a 0.63% change in EPS on a 5.39% change in revenues. For the next fiscal year, the company is expected to earn $6.99 per share on $23.44 in revenues. This represents a year-over-year change of 9.93% and 5.28%, respectively.
Valuation Metrics
Though Ross Stores has recently hit a 52-week high, what is next for Ross Stores? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ross Stores has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 27.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 27.4X. On a trailing cash flow basis, the stock currently trades at 22.6X versus its peer group's average of 17.9X. Additionally, the stock has a PEG ratio of 3.89. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Ross Stores currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ross Stores meets the list of requirements. Thus, it seems as though Ross Stores shares could have potential in the weeks and months to come.
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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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