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With a market cap of $42.8 billion, Ross Stores, Inc. (ROST) operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. Headquartered in Dublin, California, the company offers apparel, accessories, footwear, and home fashions products. ROST is expected to report its Q2 earnings on Thursday, Aug. 28.
Ahead of the event, analysts expect ROST to report a profit of $1.53 per share, down 3.8% from a profit of $1.59 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in each of the past four quarters, which is notable.
For the current year, analysts expect ROST to report EPS of $6.23, down 1.4% from $6.32 in fiscal 2024. However, its EPS is likely to rise 9% year over year to $6.79 in FY2026.
Over the past year, ROST shares surged 4%, underperforming the S&P 500 Index’s ($SPX) 17.3% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 22.9% returns over the same time frame.
On Jul. 2, shares of Ross Stores climbed more than 1% after Jefferies Financial Group Inc. (JEF) upgraded the stock from a “Hold” to a “Buy” rating. The firm also raised its price target to $150, citing improved traffic trends, solid inventory management, and a favorable off-price retail environment as key catalysts for potential upside in the stock.
The consensus opinion on ROST stock is highly upbeat, with an overall “Strong Buy” rating. Out of the 19 analysts covering the stock, 15 recommend a “Strong Buy” and four recommend a “Hold.” Its mean price target of $154.53 indicates a robust 11.1% upside potential from current price levels.
