Strong Results Lifted Ross Stores (ROST)

Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Eagle Mid Cap Growth Fund”. A copy of the letter can be downloaded here. The fourth quarter of 2025 saw mixed results for midcap stocks. Among the style indexes, the Russell Midcap® Growth Index decreased by 3.70%, while the Russell Midcap® Value Index rose by 1.41%. In the growth index, materials achieved the highest absolute return at 17.51%. However, due to their smaller weight in the index, their contribution to overall returns was limited. The healthcare (up 1.13%) and real estate (up 0.24%) sectors were the only other positive contributing sectors. Midcap stocks generated positive returns in 2025 but trailed their 2024 annual returns. The Russell Midcap Growth Index rose by 8.66%, trailing the Russell Midcap Value Index’s 11.04% return. In the growth index, utilities recorded the highest absolute return among all sectors, up 29.40%. The firm anticipates a favorable year ahead for equity markets. The letter outlined potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer Spending sectors through 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted Ross Stores, Inc. (NASDAQ:ROST) as one of its leading contributors. Ross Stores, Inc. (NASDAQ:ROST) is an American discount retail apparel and home fashion store. On March 03, 2026, Ross Stores, Inc. (NASDAQ:ROST) stock closed at $197.64 per share. One-month return of Ross Stores, Inc. (NASDAQ:ROST) was 4.42%, and its shares gained 42.56% over the past 52 weeks. Ross Stores, Inc. (NASDAQ:ROST) has a market capitalization of $64.28 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its fourth quarter 2025 investor letter:

"Ross Stores, Inc. (NASDAQ:ROST) retails discounted brand-name apparel, footwear, and home fashions. The company delivered strong quarterly results, with comparable store sales and gross margins exceeding expectations. The stock reacted positively as first-year CEO Jim Conroy continues to focus on enhancing product assortment, store experience, and marketing. These initiatives have driven broad-based strength across the business and reinforcing momentum."

Ross Stores, Inc. (NASDAQ:ROST) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held Ross Stores, Inc. (NASDAQ:ROST) at the end of the fourth quarter, up from 58 in the previous quarter. While we acknowledge the potential of Ross Stores, Inc. (NASDAQ:ROST) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Ross Stores, Inc. (NASDAQ:ROST) and shared a list of best retail stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.