The most recent trading session ended with Ross Stores (ROST) standing at $139.37, reflecting a -0.24% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
The discount retailer's shares have seen an increase of 11.39% over the last month, surpassing the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.
Investors will be eagerly watching for the performance of Ross Stores in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.42, marking a 2.74% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.95 billion, up 1.97% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $21.9 billion, which would represent changes of +1.42% and +3.64%, respectively, from the prior year.
Any recent changes to analyst estimates for Ross Stores should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Ross Stores is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ross Stores is currently trading at a Forward P/E ratio of 21.81. This denotes no noticeable deviation relative to the industry's average Forward P/E of 21.81.
It is also worth noting that ROST currently has a PEG ratio of 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.64 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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