Ross Stores (ROST) closed the most recent trading day at $221.16, moving -1.67% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.11% for the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.35%.
The stock of discount retailer has risen by 7.18% in the past month, leading the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 0.51%.
Analysts and investors alike will be keeping a close eye on the performance of Ross Stores in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.65, signifying a 12.24% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.53 billion, up 10.96% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.28 per share and a revenue of $24.19 billion, representing changes of +10.14% and +6.34%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ross Stores. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.74% upward. Right now, Ross Stores possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Ross Stores is at present trading with a Forward P/E ratio of 30.91. This signifies a premium in comparison to the average Forward P/E of 30.03 for its industry.
It is also worth noting that ROST currently has a PEG ratio of 3.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Discount Stores industry currently had an average PEG ratio of 3.08 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Ross Stores, Inc. (ROST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).