Ross Stores (ROST) closed the most recent trading day at $227.82, moving +2.64% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 1.79%, while the tech-heavy Nasdaq appreciated by 1.52%.
The discount retailer's shares have seen an increase of 5.37% over the last month, not keeping up with the Retail-Wholesale sector's gain of 6.55% and outstripping the S&P 500's gain of 5.15%.
The upcoming earnings release of Ross Stores will be of great interest to investors. It is anticipated that the company will report an EPS of $1.65, marking a 12.24% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.53 billion, indicating a 10.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $7.32 per share and a revenue of $24.19 billion, demonstrating changes of +10.74% and +6.34%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Ross Stores. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.67% increase. As of now, Ross Stores holds a Zacks Rank of #2 (Buy).
Investors should also note Ross Stores's current valuation metrics, including its Forward P/E ratio of 30.33. Its industry sports an average Forward P/E of 29.93, so one might conclude that Ross Stores is trading at a premium comparatively.
We can additionally observe that ROST currently boasts a PEG ratio of 3.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 3.02.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ross Stores, Inc. (ROST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).