Ross Stores (ROST) closed the most recent trading day at $192.32, moving +1.39% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.16% for the day. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
The discount retailer's stock has climbed by 5.03% in the past month, exceeding the Retail-Wholesale sector's gain of 3.08% and the S&P 500's loss of 0.42%.
The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. The company is forecasted to report an EPS of $1.87, showcasing a 4.47% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.37 billion, indicating a 7.75% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.47 per share and a revenue of $22.48 billion, signifying shifts of +2.37% and +6.41%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ross Stores. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% upward. Ross Stores is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Ross Stores has a Forward P/E ratio of 29.31 right now. This represents no noticeable deviation compared to its industry average Forward P/E of 29.31.
Also, we should mention that ROST has a PEG ratio of 3.62. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 3.27 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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