Ross Stores, Inc. (ROST) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Ross Stores (ROST)? Shares have been on the move with the stock up 17.9% over the past month. The stock hit a new 52-week high of $252.09 in the previous session. Ross Stores has gained 39.4% since the start of the year compared to the -0.1% move for the Zacks Retail-Wholesale sector and the 14.6% return for the Zacks Retail - Discount Stores industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 21, 2026, Ross Stores reported EPS of $2.02 versus consensus estimate of $1.7.

For the current fiscal year, Ross Stores is expected to post earnings of $7.76 per share on $25.06 in revenues. This represents a 17.4% change in EPS on a 10.16% change in revenues. For the next fiscal year, the company is expected to earn $8.49 per share on $26.5 in revenues. This represents a year-over-year change of 9.43% and 5.74%, respectively.

Valuation Metrics

While Ross Stores has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Ross Stores has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 32.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 31.1X. On a trailing cash flow basis, the stock currently trades at 30.6X versus its peer group's average of 23.6X. Additionally, the stock has a PEG ratio of 2.81. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Ross Stores currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ross Stores fits the bill. Thus, it seems as though Ross Stores shares could still be poised for more gains ahead.

How Does ROST Stack Up to the Competition?

Shares of ROST have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The TJX Companies, Inc. (TJX). TJX has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. The TJX Companies, Inc. beat our consensus estimate by 17.82%, and for the current fiscal year, TJX is expected to post earnings of $5.17 per share on revenue of $63.9 billion.

Shares of The TJX Companies, Inc. have gained 6.1% over the past month, and currently trade at a forward P/E of 31.09X and a P/CF of 26.27X.

The Retail - Discount Stores industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ROST and TJX, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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