Ross Stores (ROST) closed the most recent trading day at $141.47, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, lost 0.74%.
Heading into today, shares of the discount retailer had gained 7.81% over the past month, outpacing the Retail-Wholesale sector's gain of 0.16% and the S&P 500's gain of 0.38% in that time.
The investment community will be closely monitoring the performance of Ross Stores in its forthcoming earnings report. On that day, Ross Stores is projected to report earnings of $1.42 per share, which would represent a year-over-year decline of 2.74%. Alongside, our most recent consensus estimate is anticipating revenue of $4.95 billion, indicating a 1.97% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.41 per share and a revenue of $21.9 billion, demonstrating changes of +1.42% and +3.64%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Ross Stores. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Ross Stores is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Ross Stores is at present trading with a Forward P/E ratio of 21.93. This denotes no noticeable deviation relative to the industry's average Forward P/E of 21.93.
Meanwhile, ROST's PEG ratio is currently 2.73. 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. The Retail - Discount Stores industry had an average PEG ratio of 2.65 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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