Wall Street Zen Upgrades Ross Stores (NASDAQ:ROST) to Buy

Key Points

• Wall Street Zen upgraded Ross Stores from “hold” to “buy,” while other analysts also raised price targets or ratings. MarketBeat’s consensus is “Moderate Buy,” with an average price target of $272.06.
• Ross Stores reported quarterly EPS of $2.66, exceeding the $1.95 consensus estimate, while revenue reached $6.26 billion, up 13.3% year over year.
• Shares opened at $228.28, with a market capitalization of $72.92 billion and a 12-month trading range of $157.39 to $257.00. Institutional investors own 86.86% of the company, while two insiders recently sold shares.

Ross Stores (NASDAQ:ROST - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Sunday, Wall Street Zen reports.

A number of other brokerages have also issued reports on ROST. Wells Fargo & Company lifted their target price on Ross Stores from $245.00 to $248.00 and gave the stock an "equal weight" rating in a research report on Friday, August 21st. Zacks Research raised Ross Stores from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 6th. Telsey Advisory Group increased their target price on Ross Stores from $265.00 to $280.00 and gave the company an "outperform" rating in a research note on Friday, August 14th. Robert W. Baird raised their price target on shares of Ross Stores from $250.00 to $270.00 and gave the stock an "outperform" rating in a research report on Friday, August 21st. Finally, Barclays lifted their price target on shares of Ross Stores from $260.00 to $298.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $272.06.

Ross Stores Stock Performance

Shares of ROST opened at $228.28 on Friday. The company has a current ratio of 1.61, a quick ratio of 0.98 and a debt-to-equity ratio of 0.12. The company has a 50-day moving average of $231.17 and a two-hundred day moving average of $222.06. The stock has a market cap of $72.92 billion, a P/E ratio of 27.64, a PEG ratio of 2.04 and a beta of 0.83. Ross Stores has a 12-month low of $157.39 and a 12-month high of $257.00.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.71. The business had revenue of $6.26 billion for the quarter, compared to analysts' expectations of $6.16 billion. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. The company's quarterly revenue was up 13.3% on a year-over-year basis. During the same period last year, the company earned $1.56 earnings per share. As a group, research analysts predict that Ross Stores will post 8.15 EPS for the current fiscal year.

Insider Buying and Selling

In other Ross Stores news, CEO James Conroy sold 49,205 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $229.48, for a total transaction of $11,291,563.40. Following the completion of the transaction, the chief executive officer directly owned 134,349 shares of the company's stock, valued at $30,830,408.52. The trade was a 26.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Stephen C. Brinkley sold 6,424 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $229.66, for a total value of $1,475,335.84. Following the completion of the transaction, the insider directly owned 51,665 shares of the company's stock, valued at $11,865,383.90. This trade represents a 11.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ROST. BlackRock Inc. acquired a new stake in shares of Ross Stores during the second quarter worth $5,938,711,000. State Street Corp boosted its stake in Ross Stores by 5.3% in the 2nd quarter. State Street Corp now owns 14,643,656 shares of the apparel retailer's stock worth $3,116,902,000 after purchasing an additional 734,009 shares during the period. Bank of America Corp DE acquired a new position in Ross Stores in the 2nd quarter worth $2,024,203,000. Primecap Management Co. CA acquired a new position in Ross Stores in the 2nd quarter worth $1,937,995,000. Finally, Wellington Management Group LLP increased its holdings in Ross Stores by 89.2% during the 2nd quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer's stock worth $1,408,148,000 after purchasing an additional 3,118,591 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

About Ross Stores

Ross Stores, Inc is an off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, which offer branded and designer apparel, accessories, footwear, and home merchandise at discounts to regular department and specialty store prices.

Ross Stores also operates dd's DISCOUNTS, a chain focused on value-oriented apparel, accessories, footwear, and home products. Both retail formats generally purchase merchandise opportunistically from manufacturers, department stores, and other suppliers, allowing the company to offer changing assortments and discounted prices.

Founded in 1950, Ross Stores serves customers across the United States through its store network and e-commerce presence.

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