Erste Group Bank Predicts Stronger Earnings for Ross Stores

Key Points

• Erste Group Bank raised Ross Stores’ FY2028 EPS forecast to $8.91 from $8.51, above the current analyst consensus of $8.15.
• Ross Stores recently exceeded quarterly expectations, reporting $2.66 EPS versus the $1.95 consensus and $6.26 billion in revenue, up 13.3% year over year.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and a $263.76 average price target; the company also declared a quarterly dividend of $0.445 per share.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Research analysts at Erste Group Bank raised their FY2028 earnings per share (EPS) estimates for shares of Ross Stores in a note issued to investors on Thursday, August 27th. Erste Group Bank analyst H. Engel now anticipates that the apparel retailer will earn $8.91 per share for the year, up from their previous forecast of $8.51. The consensus estimate for Ross Stores' current full-year earnings is $8.15 per share.

Ross Stores (NASDAQ:ROST - Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 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 analyst estimates of $6.16 billion. Ross Stores had a return on equity of 39.29% and a net margin of 10.85%.The company's quarterly revenue was up 13.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.56 EPS.

Other equities analysts have also issued reports about the stock. Telsey Advisory Group boosted their target price on shares of Ross Stores from $265.00 to $280.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Citigroup lifted their price target on shares of Ross Stores from $270.00 to $290.00 and gave the company a "buy" rating in a research report on Friday, August 21st. Barclays upped their price objective on Ross Stores from $260.00 to $298.00 and gave the company an "overweight" rating in a report on Friday, August 21st. Truist Financial increased their price objective on Ross Stores from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. Finally, Robert W. Baird raised their target price on Ross Stores from $250.00 to $270.00 and gave the stock an "outperform" rating in a research note on Friday, August 21st. Fifteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Ross Stores currently has an average rating of "Moderate Buy" and a consensus target price of $263.76.

Ross Stores Stock Performance

Shares of ROST opened at $228.55 on Monday. Ross Stores has a 12-month low of $143.39 and a 12-month high of $257.00. The firm has a market capitalization of $73.31 billion, a P/E ratio of 27.67, a P/E/G ratio of 1.92 and a beta of 0.86. The firm has a 50-day moving average price of $233.95 and a 200 day moving average price of $223.66. The company has a current ratio of 1.61, a quick ratio of 0.98 and a debt-to-equity ratio of 0.12.

Hedge Funds Weigh In On Ross Stores

Hedge funds have recently made changes to their positions in the stock. Hilton Head Capital Partners LLC acquired a new position in Ross Stores during the fourth quarter worth $26,000. Bard Associates Inc. purchased a new stake in shares of Ross Stores in the 4th quarter valued at $31,000. Virtus Advisers LLC acquired a new position in Ross Stores during the 4th quarter worth about $32,000. Fideuram Asset Management Ireland dac purchased a new position in Ross Stores during the 4th quarter valued at about $38,000. Finally, Twin Lakes Capital Management LLC acquired a new position in Ross Stores in the 2nd quarter valued at about $41,000. Hedge funds and other institutional investors own 86.86% of the company's stock.

Ross Stores Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be paid a $0.445 dividend. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 8th. Ross Stores's payout ratio is 21.55%.

About Ross Stores

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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