Erste Group Bank Predicts Stronger Earnings for Ross Stores

Key Points

• Erste Group Bank raised its FY2028 EPS forecast for Ross Stores to $8.96 from $8.91, above the current consensus estimate of $8.15.
• Ross Stores recently reported a strong quarterly performance, with EPS of $2.66 beating estimates by $0.71 and revenue rising 13.3% year over year to $6.26 billion.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus rating and an average price target of $263.76; institutional investors own approximately 86.9% of the company.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Research analysts at Erste Group Bank upped their FY2028 EPS estimates for shares of Ross Stores in a report released on Tuesday, September 8th. Erste Group Bank analyst H. Engel now expects that the apparel retailer will post earnings per share of $8.96 for the year, up from their prior forecast of $8.91. The consensus estimate for Ross Stores' current full-year earnings is $8.15 per share.

Ross Stores (NASDAQ:ROST - Get Free Report) last announced its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, beating analysts' consensus estimates of $1.95 by $0.71. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. The firm had revenue of $6.26 billion during the quarter, compared to analysts' expectations of $6.16 billion. During the same period in the previous year, the company earned $1.56 earnings per share. Ross Stores's quarterly revenue was up 13.3% compared to the same quarter last year.

Several other analysts also recently weighed in on ROST. Morgan Stanley boosted their target price on Ross Stores from $231.00 to $234.00 and gave the company an "equal weight" rating in a report on Friday, August 21st. Barclays raised their price target on Ross Stores from $260.00 to $298.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. JPMorgan Chase & Co. lifted their price target on Ross Stores from $262.00 to $272.00 and gave the stock an "overweight" rating in a research report on Friday, August 21st. Citigroup boosted their price objective on Ross Stores from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, August 21st. Finally, Wall Street Zen downgraded Ross Stores from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 20th. Fifteen investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Ross Stores currently has a consensus rating of "Moderate Buy" and a consensus price target of $263.76.

Ross Stores Stock Performance

Shares of ROST stock opened at $225.48 on Friday. The stock's 50-day moving average is $235.79 and its two-hundred day moving average is $225.69. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.98 and a current ratio of 1.61. Ross Stores has a 1 year low of $143.39 and a 1 year high of $257.00. The firm has a market cap of $72.03 billion, a price-to-earnings ratio of 27.30, a PEG ratio of 1.89 and a beta of 0.85.

Institutional Investors Weigh In On Ross Stores

Several large investors have recently modified their holdings of the stock. Sequoia Financial Advisors LLC lifted its holdings in shares of Ross Stores by 12.0% during the second quarter. Sequoia Financial Advisors LLC now owns 16,361 shares of the apparel retailer's stock worth $3,482,000 after purchasing an additional 1,758 shares during the period. Tidal Investments LLC increased its stake in Ross Stores by 14.2% in the 2nd quarter. Tidal Investments LLC now owns 69,580 shares of the apparel retailer's stock valued at $14,810,000 after buying an additional 8,673 shares during the period. Pinnacle Wealth Management Advisory Group LLC increased its stake in Ross Stores by 2.8% in the 2nd quarter. Pinnacle Wealth Management Advisory Group LLC now owns 3,447 shares of the apparel retailer's stock valued at $734,000 after buying an additional 95 shares during the period. NorthRock Partners LLC raised its position in Ross Stores by 10.2% during the 2nd quarter. NorthRock Partners LLC now owns 2,663 shares of the apparel retailer's stock worth $567,000 after buying an additional 247 shares during the last quarter. Finally, RFG Advisory LLC raised its position in Ross Stores by 3.8% during the 2nd quarter. RFG Advisory LLC now owns 1,430 shares of the apparel retailer's stock worth $304,000 after buying an additional 52 shares during the last quarter. 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. Investors of record on Tuesday, September 8th will be issued a dividend of $0.445 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores's dividend payout ratio (DPR) is currently 21.55%.

About Ross Stores

Ross Stores, Inc NASDAQ: ROST is an off-price retailer that operates Ross Dress for Less and dd's DISCOUNTS stores. The company sells a broad selection of apparel, accessories, footwear and home fashion merchandise for women, men and children, generally at prices below those of traditional department and specialty stores.

Ross Stores follows an opportunistic buying model, purchasing name-brand, designer and other merchandise from manufacturers and retailers at discounted prices. Its product assortment changes frequently and can include clothing, shoes, handbags, jewelry, beauty products, furniture, bedding, home décor and other household goods.

Founded in 1950, the company is headquartered in Dublin, California, and serves customers primarily through its store network across the United States and Guam.

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