Q2 EPS Estimates for Ross Stores Raised by Zacks Research

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Ross Stores to $1.86 from $1.78 and reiterated a Strong-Buy rating on the stock.
• Ross Stores recently beat earnings and revenue expectations, reporting $2.02 EPS versus $1.73 expected and revenue of $6.01 billion versus $5.64 billion estimated. The company also raised its FY2026 and Q2 2026 guidance ranges.
• Wall Street sentiment remains positive, with several firms lifting price targets, while the stock is trading near its 52-week high after a strong run. Institutional ownership is high, and the company recently announced a quarterly dividend of $0.445 per share.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Analysts at Zacks Research upped their Q2 2027 earnings per share estimates for Ross Stores in a report released on Thursday, June 4th. Zacks Research analyst Team now anticipates that the apparel retailer will post earnings of $1.86 per share for the quarter, up from their prior estimate of $1.78. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Ross Stores' current full-year earnings is $7.75 per share. Zacks Research also issued estimates for Ross Stores' FY2027 earnings at $7.64 EPS, Q1 2028 earnings at $1.98 EPS, Q2 2028 earnings at $2.07 EPS, Q3 2028 earnings at $1.93 EPS, FY2028 earnings at $8.33 EPS, Q1 2029 earnings at $2.15 EPS and FY2029 earnings at $8.89 EPS.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its quarterly earnings data 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 company had revenue of $6.01 billion for the quarter, compared to analyst estimates of $5.64 billion. Ross Stores had a return on equity of 38.42% and a net margin of 9.74%.The firm's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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.

A number of other research firms have also weighed in on ROST. JPMorgan Chase & Co. boosted their price objective on Ross Stores from $248.00 to $251.00 and gave the stock an "overweight" rating in a research note on Monday, May 18th. Barclays boosted their price objective on Ross Stores from $242.00 to $260.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 26th. Telsey Advisory Group lifted their target price on Ross Stores from $240.00 to $265.00 and gave the company an "outperform" rating in a research report on Friday, May 22nd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $257.00 target price on shares of Ross Stores in a research report on Friday, May 22nd. Finally, Guggenheim restated a "buy" rating and issued a $290.00 target price on shares of Ross Stores in a research report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Ross Stores has an average rating of "Moderate Buy" and an average target price of $233.18.

Ross Stores Stock Performance

NASDAQ ROST opened at $233.06 on Friday. The stock's fifty day moving average is $222.75 and its two-hundred day moving average is $201.66. The firm has a market capitalization of $74.76 billion, a P/E ratio of 32.55, a price-to-earnings-growth ratio of 2.61 and a beta of 0.86. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.94 and a current ratio of 1.54. Ross Stores has a fifty-two week low of $124.49 and a fifty-two week high of $237.41.

Institutional Investors Weigh In On Ross Stores

A number of institutional investors have recently modified their holdings of the company. State Street Corp boosted its holdings in Ross Stores by 0.7% in the fourth quarter. State Street Corp now owns 13,911,953 shares of the apparel retailer's stock valued at $2,506,099,000 after purchasing an additional 99,975 shares during the period. Bank of America Corp DE boosted its holdings in Ross Stores by 1.9% in the third quarter. Bank of America Corp DE now owns 9,762,583 shares of the apparel retailer's stock valued at $1,487,720,000 after purchasing an additional 180,182 shares during the period. Morgan Stanley boosted its holdings in Ross Stores by 1.5% in the fourth quarter. Morgan Stanley now owns 5,436,788 shares of the apparel retailer's stock valued at $979,384,000 after purchasing an additional 79,519 shares during the period. Norges Bank purchased a new position in Ross Stores in the fourth quarter valued at $868,360,000. Finally, Viking Global Investors LP boosted its holdings in Ross Stores by 9.9% in the second quarter. Viking Global Investors LP now owns 4,747,639 shares of the apparel retailer's stock valued at $605,704,000 after purchasing an additional 426,370 shares during the period. 86.86% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, COO Michael J. Hartshorn sold 15,813 shares of Ross Stores stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $214.91, for a total value of $3,398,371.83. Following the completion of the sale, the chief operating officer directly owned 116,028 shares of the company's stock, valued at approximately $24,935,577.48. The trade was a 11.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CMO Karen Sykes sold 5,506 shares of Ross Stores stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $213.40, for a total value of $1,174,980.40. Following the completion of the sale, the chief marketing officer directly owned 104,648 shares of the company's stock, valued at $22,331,883.20. The trade was a 5.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 25,756 shares of company stock valued at $5,521,004. 2.10% of the stock is currently owned by corporate insiders.

Ross Stores Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 9th will be paid a $0.445 dividend. The ex-dividend date of this dividend is Tuesday, June 9th. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores's payout ratio is presently 24.86%.

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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