Ross Stores Stock Earnings Estimates Cut by Erste Group Bank

Key Points

• Erste Group Bank lowered its FY2028 EPS estimate for Ross Stores to $8.92 from $8.96, though that remains above the current full-year consensus estimate of $8.15.
• Ross Stores reported a strong latest quarter, with EPS of $2.66 versus the $1.95 consensus and revenue of $6.26 billion, up 13.3% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $264.61, compared with the stock’s recent opening price of $229.30.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Analysts at Erste Group Bank reduced their FY2028 earnings per share estimates for Ross Stores in a report released on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the apparel retailer will post earnings of $8.92 per share for the year, down from their prior estimate of $8.96. The consensus estimate for Ross Stores' current full-year earnings is $8.15 per share.

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

Other analysts have also issued research reports about the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $294.00 price target on shares of Ross Stores in a research report on Friday, August 21st. Wall Street Zen cut Ross Stores from a "buy" rating to a "hold" rating in a report on Saturday. Jefferies Financial Group increased their price objective on Ross Stores from $265.00 to $285.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. Wells Fargo & Company raised their target price on Ross Stores from $245.00 to $248.00 and gave the stock an "equal weight" rating in a research note on Friday, August 21st. Finally, Citigroup raised their target price on Ross Stores from $270.00 to $290.00 and gave the stock a "buy" rating in a research note on Friday, August 21st. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $264.61.

Ross Stores Stock Performance

NASDAQ:ROST opened at $229.30 on Monday. The company's 50-day moving average is $231.44 and its two-hundred day moving average is $230.11. Ross Stores has a 1-year low of $156.41 and a 1-year high of $257.00. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.61 and a quick ratio of 0.98. The firm has a market capitalization of $73.25 billion, a price-to-earnings ratio of 27.76, a PEG ratio of 1.93 and a beta of 0.83.

Ross Stores Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 8th were issued a $0.4450 dividend. This represents a $1.78 annualized dividend and a yield of 0.8%. The ex-dividend date was Tuesday, September 8th. Ross Stores's dividend payout ratio (DPR) is 21.55%.

Insider Activity at Ross Stores

In other Ross Stores news, CEO James Conroy sold 49,205 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $229.48, for a total transaction of $11,291,563.40. Following the transaction, the chief executive officer directly owned 134,349 shares in the company, valued at $30,830,408.52. This represents a 26.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Stephen C. Brinkley sold 6,424 shares of the company's stock in a transaction 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 transaction, the insider owned 51,665 shares in the company, valued at $11,865,383.90. This trade represents a 11.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ross Stores

A number of institutional investors have recently modified their holdings of ROST. Sigma Planning Corp raised its holdings in shares of Ross Stores by 39.0% in the 3rd quarter. Sigma Planning Corp now owns 7,523 shares of the apparel retailer's stock valued at $1,756,000 after buying an additional 2,110 shares during the period. IRON Financial LLC acquired a new position in Ross Stores during the 3rd quarter worth about $980,000. Signaturefd LLC boosted its holdings in Ross Stores by 1.4% during the 3rd quarter. Signaturefd LLC now owns 8,278 shares of the apparel retailer's stock valued at $1,932,000 after acquiring an additional 117 shares during the period. Gibbs Wealth Management boosted its holdings in Ross Stores by 41.8% during the 3rd quarter. Gibbs Wealth Management now owns 5,012 shares of the apparel retailer's stock valued at $1,170,000 after acquiring an additional 1,478 shares during the period. Finally, Capital Investment Advisors LLC boosted its holdings in Ross Stores by 12.7% during the 3rd quarter. Capital Investment Advisors LLC now owns 1,535 shares of the apparel retailer's stock valued at $358,000 after acquiring an additional 173 shares during the period. 86.86% of the stock is owned by institutional investors and hedge funds.

Ross Stores Company Profile

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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