Ross Stores (ROST) closed the latest trading day at $138.68, indicating a -1.67% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 2.24% for the day. Elsewhere, the Dow saw a downswing of 1.73%, while the tech-heavy Nasdaq depreciated by 3.07%.
Coming into today, shares of the discount retailer had gained 14% in the past month. In that same time, the Retail-Wholesale sector lost 3.33%, while the S&P 500 lost 4.17%.
Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.42, signifying a 2.74% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.96 billion, up 2.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $21.9 billion, which would represent changes of +1.42% and +3.65%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ross Stores. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Ross Stores is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Ross Stores is currently exchanging hands at a Forward P/E ratio of 22.01. Its industry sports an average Forward P/E of 22.01, so one might conclude that Ross Stores is trading at no noticeable deviation comparatively.
Investors should also note that ROST has a PEG ratio of 2.75 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.49.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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