Ross Stores (ROST) closed the most recent trading day at $193.79, moving +1.02% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.25%.
The discount retailer's shares have seen an increase of 4.97% over the last month, surpassing the Retail-Wholesale sector's gain of 3.96% and the S&P 500's gain of 1.57%.
Investors will be eagerly watching for the performance of Ross Stores in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.87, signifying a 4.47% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.37 billion, showing a 7.75% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.47 per share and revenue of $22.48 billion. These totals would mark changes of +2.37% and +6.41%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ross Stores. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% increase. As of now, Ross Stores holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Ross Stores has a Forward P/E ratio of 29.64 right now. Its industry sports an average Forward P/E of 29.64, 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 3.66 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. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 3.25.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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