Ross Stores (ROST) ended the recent trading session at $188.65, demonstrating a +1.15% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.94%.
The discount retailer's stock has climbed by 3.53% in the past month, falling short of the Retail-Wholesale sector's gain of 4.04% and outpacing the S&P 500's gain of 0.89%.
The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. The company's upcoming EPS is projected at $1.87, signifying a 4.47% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.37 billion, indicating a 7.75% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.47 per share and revenue of $22.47 billion, indicating changes of +2.37% and +6.37%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Ross Stores. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 moved 0.24% higher. Right now, Ross Stores possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Ross Stores is currently trading at a Forward P/E ratio of 28.83. This expresses no noticeable deviation compared to the average Forward P/E of 28.83 of its industry.
One should further note that ROST currently holds a PEG ratio of 3.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 3.09.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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