Erste Group Bank Expects Stronger Earnings for Ross Stores

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Ross Stores to $7.80 from $7.78, above the current analyst consensus of $7.76.
• Ross Stores recently exceeded quarterly expectations, reporting $2.02 EPS versus $1.73 expected and $6.01 billion in revenue, up 20.6% year over year.
• Analyst sentiment remains favorable, with 15 Buy ratings and six Holds, producing a consensus “Moderate Buy” rating and a $239.12 price target; shares recently opened at $254.82.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Equities research analysts at Erste Group Bank increased their FY2027 earnings per share estimates for shares of Ross Stores in a report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now expects that the apparel retailer will earn $7.80 per share for the year, up from their previous estimate of $7.78. The consensus estimate for Ross Stores' current full-year earnings is $7.76 per share.

ROST has been the topic of several other reports. Telsey Advisory Group upped their price target on Ross Stores from $240.00 to $265.00 and gave the company an "outperform" rating in a research report on Friday, May 22nd. The Goldman Sachs Group restated a "buy" rating and set a $270.00 price target on shares of Ross Stores in a research report on Friday, May 22nd. Wells Fargo & Company lowered Ross Stores from an "overweight" rating to an "equal weight" rating and set a $245.00 target price on the stock. in a research note on Tuesday, June 23rd. Guggenheim restated a "buy" rating and issued a $290.00 price objective on shares of Ross Stores in a research report on Monday, April 27th. Finally, Barclays raised their price objective on Ross Stores from $242.00 to $260.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. Fifteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $239.12.

Ross Stores Price Performance

Ross Stores stock opened at $254.82 on Tuesday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.54 and a quick ratio of 0.94. Ross Stores has a one year low of $143.39 and a one year high of $257.00. The firm has a market capitalization of $81.74 billion, a P/E ratio of 35.59, a PEG ratio of 2.86 and a beta of 0.86. The business has a fifty day moving average price of $232.27 and a 200-day moving average price of $218.76.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its earnings results on Thursday, May 21st. The apparel retailer reported $2.02 earnings per share for the quarter, topping analysts' consensus estimates of $1.73 by $0.29. The firm had revenue of $6.01 billion during the quarter, compared to analyst estimates of $5.64 billion. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%. The company's quarterly revenue was up 20.6% on a year-over-year basis. During the same quarter last year, the business earned $1.47 earnings per share. Ross Stores has set its FY 2026 guidance at 7.500-7.740 EPS and its Q2 2026 guidance at 1.850-1.930 EPS.

Ross Stores Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 9th were paid a $0.445 dividend. The ex-dividend date of this dividend was Tuesday, June 9th. This represents a $1.78 annualized dividend and a dividend yield of 0.7%. Ross Stores's dividend payout ratio (DPR) is presently 24.86%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vise Technologies Inc. purchased a new position in shares of Ross Stores during the second quarter valued at approximately $3,574,000. OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Ross Stores in the second quarter valued at $6,341,000. E Fund Management Co. Ltd. purchased a new position in Ross Stores during the 2nd quarter valued at $2,650,000. Westport Asset Management Inc. bought a new position in Ross Stores in the 2nd quarter worth $3,618,000. Finally, Somerville Kurt F purchased a new stake in shares of Ross Stores in the 2nd quarter worth about $319,000. Institutional investors own 86.86% of the company's stock.

Ross Stores Company Profile

Ross Stores, Inc NASDAQ: ROST is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd's DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross's business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.

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