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With a market cap of 47.86 billion, Ross Stores Inc. (ROST) is the largest off-price retailer in the U.S. Headquartered in Dublin, California, the company’s stores provide a wide selection of name-brand and designer apparel, footwear, accessories, and home fashions at discounted prices. Operating under the brand names "Ross Dress for Less" and "dd's DISCOUNTS," the company attracts a broad customer base looking for high-quality products at affordable prices.
Ross Stores stock has outperformed the broader market over the last year. The stock has gained 40.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.9%. But, in 2024, ROST’s shares have risen only 2.7%, underperforming SPX’s 11.2% returns on a YTD basis.
Narrowing the focus, ROST’s outperformance is also apparent compared to the SPDR S&P Retail ETF (XRT). The exchange-traded fund has gained 26.5% over the past year, lagging ROST’s performance. However, XRT’s 3.6% returns on a YTD basis outshine the stock’s gains over the same time frame.
On May 24, shares of Ross Stores rose 9.2% following a strong Q1 report on May 23 that exceeded analysts' expectations. The stock closed the session with 7.8% gains.
For the current fiscal year, ending in January 2025, analysts expect ROST’s EPS to grow 6.7% to $5.93 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering ROST stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings and three “Holds.”
This configuration has been consistent over the past three months.
On May 24, UBS analyst Jay Sole maintained a “Hold” rating on Ross Stores with a price target of $147.00. However, Laura Champine from Loop Capital Markets maintained a “Buy” rating on Ross Stores, with a price target of $170.00.
The mean price target of $161.89 represents a 13.9% premium to ROST’s current price levels. The Street-high price target of $173 suggests an upside potential of 21.7%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
