Zacks Research Predicts Stronger Earnings for Ross Stores

Key Points

• Zacks Research raised Ross Stores’ FY2027 EPS estimate to $8.16 from $7.64, slightly above the current consensus of $8.15, while maintaining a “Hold” rating.
• Ross Stores recently reported a strong 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 is broadly positive, with 15 Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $263.76.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Equities researchers at Zacks Research increased their FY2027 earnings per share estimates for shares of Ross Stores in a note issued to investors on Thursday, September 3rd. Zacks Research analyst Team now expects that the apparel retailer will post earnings of $8.16 per share for the year, up from their previous forecast of $7.64. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Ross Stores' current full-year earnings is $8.15 per share. Zacks Research also issued estimates for Ross Stores' Q2 2029 earnings at $2.66 EPS and FY2029 earnings at $9.57 EPS.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 EPS for the quarter, beating analysts' consensus estimates 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 last year, the business posted $1.56 earnings per share. The firm's revenue was up 13.3% compared to the same quarter last year.

A number of other equities research analysts have also weighed in on the stock. Jefferies Financial Group boosted their price objective on shares of Ross Stores from $265.00 to $285.00 and gave the company a "buy" rating in a 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. Citigroup lifted their price target on Ross Stores from $270.00 to $290.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. JPMorgan Chase & Co. boosted their price target on Ross Stores from $262.00 to $272.00 and gave the company an "overweight" rating in a research note on Friday, August 21st. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $294.00 price objective on shares of Ross Stores in a report on Friday, August 21st. Fifteen analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $263.76.

Ross Stores Stock Performance

NASDAQ ROST opened at $230.69 on Monday. Ross Stores has a 12-month low of $143.39 and a 12-month high of $257.00. The company has a fifty day simple moving average of $234.52 and a two-hundred day simple moving average of $224.91. 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 stock has a market cap of $73.69 billion, a P/E ratio of 27.93, a P/E/G ratio of 1.94 and a beta of 0.85.

Ross Stores Announces Dividend

The firm also recently announced 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. This represents a $1.78 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 8th. Ross Stores's dividend payout ratio (DPR) is 21.55%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROST. Woodline Partners LP lifted its holdings in shares of Ross Stores by 39.9% in the 1st quarter. Woodline Partners LP now owns 27,875 shares of the apparel retailer's stock valued at $3,562,000 after buying an additional 7,951 shares during the period. Geneos Wealth Management Inc. boosted its stake in shares of Ross Stores by 23.5% in the first quarter. Geneos Wealth Management Inc. now owns 615 shares of the apparel retailer's stock worth $79,000 after buying an additional 117 shares during the last quarter. NewEdge Advisors LLC grew its holdings in Ross Stores by 35.8% during the second quarter. NewEdge Advisors LLC now owns 10,581 shares of the apparel retailer's stock worth $1,350,000 after acquiring an additional 2,792 shares during the period. Treasurer of the State of North Carolina grew its holdings in Ross Stores by 1.0% during the second quarter. Treasurer of the State of North Carolina now owns 150,491 shares of the apparel retailer's stock worth $19,200,000 after acquiring an additional 1,508 shares during the period. Finally, Main Street Financial Solutions LLC raised its position in Ross Stores by 2.2% during the second quarter. Main Street Financial Solutions LLC now owns 12,580 shares of the apparel retailer's stock valued at $1,605,000 after acquiring an additional 265 shares in the last quarter. 86.86% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Ross Stores

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Zacks raised its earnings forecasts across multiple future periods. Estimates increased for Q3 2027 through Q4 2028, Q1 2029, and FY2028. The FY2028 EPS forecast rose to $8.84 from $8.33, while the Q4 2028 estimate increased to $2.48 from $2.34. These revisions suggest analysts see better-than-expected earnings potential for Ross Stores. MarketBeat Ross Stores analyst estimates
• Positive Sentiment: Recent operating results provide support for the bullish estimate revisions. In its latest reported quarter, Ross Stores generated $6.26 billion in revenue, up 13.3% year over year, and posted $2.66 in EPS versus the $1.95 consensus estimate. The earnings beat and strong revenue growth indicate continued resilience in the off-price retail model.
• Neutral Sentiment: Zacks maintained a “Hold” rating. Although its forecasts improved, the unchanged rating signals that the analyst does not yet see enough risk-adjusted upside to recommend buying the shares. The current full-year EPS consensus remains $8.15. Zacks Ross Stores growth stock analysis
• Neutral Sentiment: The Q2 2026 earnings call transcript offers additional management commentary on sales trends, margins, inventory, store expansion and the outlook, but no specific new guidance details are provided in the article listing. Ross Stores Q2 2026 earnings call transcript
• Negative Sentiment: Valuation and limited analyst conviction remain headwinds. Ross Stores trades at roughly 28 times earnings, while its shares are below the 50-day moving average. With Zacks still at Hold and no fresh near-term catalyst, investors may be taking profits after the strong earnings performance.

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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