Ross Stores (ROST) closed at $230.59 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.51% loss on the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 1.07%.
Prior to today's trading, shares of the discount retailer had lost 0.11% lagged the Retail-Wholesale sector's gain of 3.73% and was narrower than the S&P 500's loss of 0.87%.
Market participants will be closely following the financial results of Ross Stores in its upcoming release. On that day, Ross Stores is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 15.19%. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 10.68% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.77 per share and revenue of $25.65 billion. These totals would mark changes of +32.68% and +12.76%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Ross Stores. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. Right now, Ross Stores possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Ross Stores is holding a Forward P/E ratio of 26.02. This valuation marks a premium compared to its industry average Forward P/E of 19.9.
It's also important to note that ROST currently trades at a PEG ratio of 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 1.89.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>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).