Ross Stores (ROST) closed the most recent trading day at $214.67, moving +1.57% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Heading into today, shares of the discount retailer had lost 7.06% over the past month, lagging the Retail-Wholesale sector's loss of 0.18% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Ross Stores in its upcoming release. The company is predicted to post an EPS of $1.9, indicating a 21.79% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 10.36% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.74 per share and revenue of $24.81 billion. These totals would mark changes of +17.1% and +9.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Ross Stores. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Ross Stores possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Ross Stores's current valuation metrics, including its Forward P/E ratio of 27.32. This valuation marks a premium compared to its industry average Forward P/E of 26.68.
One should further note that ROST currently holds a PEG ratio of 2.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Ross Stores, Inc. (ROST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).