Ross Stores (ROST) closed at $191.44 in the latest trading session, marking a +1.15% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.65% for the day. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The stock of discount retailer has risen by 3.35% in the past month, lagging the Retail-Wholesale sector's gain of 4.29% and overreaching the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.84, reflecting a 2.79% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.35 billion, indicating a 7.32% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.45 per share and revenue of $22.46 billion, indicating changes of +2.06% and +6.31%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Ross Stores presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Ross Stores has a Forward P/E ratio of 29.33 right now. This represents no noticeable deviation compared to its industry average Forward P/E of 29.33.
Investors should also note that ROST has a PEG ratio of 4.17 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Discount Stores industry stood at 3.55 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 17% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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