For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Ross Stores (ROST) ten years ago? It may not have been easy to hold on to ROST for all that time, but if you did, how much would your investment be worth today?
Ross Stores' Business In-Depth
With that in mind, let's take a look at Ross Stores' main business drivers.
Based in Dublin, CA, Ross Stores Inc. operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company operates its stores under the Ross Dress for Less (Ross) and dd’s DISCOUNTS names. The company’s stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas.
Ross Stores primarily offers in-season, branded, and designer apparel, footwear, accessories and other home-related merchandise for everyone in the family. This format primarily targets middle-income households. Prices offered at Ross are generally 20% to 60% below the regular prices of most department and specialty stores.
dd’s DISCOUNTS features more moderately-priced first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family. These stores target moderate-income households. The dd’s DISCOUNTS stores offer products at a 20% to 70% lesser price than the moderate department and discount stores.
Ross Stores remains focused with its store expansion initiatives over the years. Further, the company’s efforts to expand base by making efforts to increase penetration in the existing as well as new markets.
As of Mar 10, 2025, Ross Stores operated 2,205 outlets, including 1,847 Ross stores across 44 states, the District of Columbia and Guam, and 358 dd’s DISCOUNTS stores in 22 states.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Ross Stores ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2015 would be worth $2,950.02, or a 195% gain, as of May 14, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 180.51% and the price of gold went up 155.56% over the same time frame.
Analysts are forecasting more upside for ROST too.
Ross Stores shares have underperformed the industry in the past six months. ROST has been benefiting from customer response for its merchandise across the banners, which has been aiding its comps. Its store expansion plans also bode well. During the fourth quarter of fiscal 2024, comps grew 3% year over year. In the reported quarter, sales also rose 3% year over year. Earnings per share surpassed the consensus mark for eleventh straight time in the reported quarter. Management anticipates earnings per share of $5.95-$6.55 versus $6.32 recorded in fiscal 2024 and our estimate of $6.38. However, the company is cautious about the macroeconomic and geopolitical uncertainties, and persistent inflation, which are affecting the consumers’ discretionary spending. The company has also been grappling with high costs for a while.
The stock is up 5.89% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2025. The consensus estimate has moved up as well.
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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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