/Ross%20Stores%2C%20Inc_%20outside%20sign%20by-%20Ken%20Wolter%20via%20Shutterstock.jpg)
Dublin, California-based Ross Stores, Inc. (ROST) is an operator of home fashion and off-price retail apparel stores. With a market cap of $49.4 billion, Ross Stores offers apparel, accessories, footwear, and home fashion items through its outlets in the United States.
Companies worth $10 billion or more are generally described as “large-cap stocks.” Ross Stores fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, dominance, and influence in the apparel retail industry.
Ross touched its 52-week high of $158.69 on Dec. 9, 2024, and is currently trading 4.5% below that peak. Meanwhile, over the past three months, ROST stock has gained 5.4% over the past three months, notably underperforming the S&P 500 Index’s ($SPX) 8.3% surge during the same time frame.
Over the longer term, ROST’s performance has remained even grimmer. ROST stock has observed a marginal 20 bps uptick in 2025 and 69 bps gains over the past 52 weeks, significantly underperforming SPX’s 10.4% gains on a YTD basis and 20.1% surge over the past year.
To confirm the recent upturn, ROST stock has climbed above its 50-day moving average in late July and above its 200-day moving average in early August.
Ross Stores’ stock prices gained 1.1% in the trading session following the release of its mixed Q2 results on Aug. 21. Given that most of the tariffs announced in early April were delayed by the government in Q2, the company’s sales and earnings didn’t take as big a hit as previously anticipated. The company’s topline for the quarter increased 4.6% year-over-year to $5.5 billion, coming mostly in line with Street expectations. Meanwhile, its EPS for the quarter dropped 1.9% year-over-year to $1.56, surpassing the consensus estimates by 2.6%.
However, the company’s performance can get severely impacted in the coming quarters, due to high tariffs imposed by the Trump administration on the Asian countries that manufacture and export textiles and garments to the US.
Meanwhile, Ross Stores has significantly underperformed its peer, TJX Companies, Inc.’s (TJX) 16.6% gains on a YTD basis and 21.8% surge over the past 52 weeks.
Among the 19 analysts covering the ROST stock, the consensus rating is a “Strong Buy.” Its mean price target of $160.75 suggests a modest 6.1% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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.
