Q3 EPS Estimates for Ross Stores Lowered by Zacks Research

Key Points

• Zacks Research trimmed its Q3 2027 EPS estimate for Ross Stores to $1.70 from $1.74, while still keeping a Strong-Buy rating on the stock.
• Ross Stores beat its latest quarterly results, reporting $2.02 EPS and $6.01 billion in revenue, both above analyst expectations, with revenue up 20.6% year over year.
• Analyst sentiment remains generally positive, with 16 Buy ratings and 1 Strong Buy; the average target price is $233.18, slightly above the stock’s recent trading level.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Zacks Research reduced their Q3 2027 earnings estimates for Ross Stores in a research report issued to clients and investors on Thursday, June 4th. Zacks Research analyst Team now expects that the apparel retailer will earn $1.70 per share for the quarter, down from their previous forecast of $1.74. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Ross Stores' current full-year earnings is $7.73 per share. Zacks Research also issued estimates for Ross Stores' Q4 2027 earnings at $2.06 EPS.

Other equities research analysts have also issued research reports about the stock. UBS Group increased their price objective on shares of Ross Stores from $227.00 to $232.00 and gave the stock a "neutral" rating in a research note on Friday, May 22nd. Weiss Ratings reiterated a "buy (b)" rating on shares of Ross Stores in a research note on Wednesday, April 8th. The Goldman Sachs Group reiterated a "buy" rating and set a $270.00 price objective on shares of Ross Stores in a research note on Friday, May 22nd. JPMorgan Chase & Co. raised their price target on shares of Ross Stores from $248.00 to $251.00 and gave the company an "overweight" rating in a research note on Monday, May 18th. Finally, Citigroup raised their price target on shares of Ross Stores from $261.00 to $270.00 and gave the company a "buy" rating in a research note on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $233.18.

Ross Stores Price Performance

ROST opened at $230.37 on Monday. The firm has a market cap of $73.90 billion, a price-to-earnings ratio of 32.17, a price-to-earnings-growth ratio of 2.59 and a beta of 0.86. Ross Stores has a fifty-two week low of $124.49 and a fifty-two week high of $237.41. The company's 50-day moving average price is $223.03 and its 200 day moving average price is $202.16. The company has a quick ratio of 0.94, a current ratio of 1.54 and a debt-to-equity ratio of 0.12.

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 the consensus estimate of $1.73 by $0.29. The firm had revenue of $6.01 billion for the quarter, compared to analyst estimates of $5.64 billion. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%. Ross Stores's quarterly revenue was up 20.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $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.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Thurston Springer Miller Herd & Titak Inc. increased its stake in shares of Ross Stores by 7,000.0% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 142 shares of the apparel retailer's stock valued at $26,000 after acquiring an additional 140 shares during the period. Hilton Head Capital Partners LLC acquired a new position in shares of Ross Stores during the fourth quarter valued at approximately $26,000. Bard Associates Inc. acquired a new position in shares of Ross Stores during the fourth quarter valued at approximately $31,000. City Holding Co. increased its stake in shares of Ross Stores by 1,080.0% during the fourth quarter. City Holding Co. now owns 177 shares of the apparel retailer's stock valued at $32,000 after acquiring an additional 162 shares during the period. Finally, Virtus Advisers LLC acquired a new position in shares of Ross Stores during the fourth quarter valued at approximately $32,000. Institutional investors and hedge funds own 86.86% of the company's stock.

Insider Buying and Selling at Ross Stores

In other Ross Stores news, Director Patricia H. Mueller sold 1,881 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $213.13, for a total value of $400,897.53. Following the sale, the director owned 2,159 shares in the company, valued at approximately $460,147.67. This trade represents a 46.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Michael J. Hartshorn sold 15,813 shares of the firm's stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $214.91, for a total transaction of $3,398,371.83. Following the completion of the sale, the chief operating officer owned 116,028 shares in the company, valued at $24,935,577.48. The trade was a 11.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 25,756 shares of company stock worth $5,521,004. 2.10% of the stock is owned by company insiders.

Ross Stores Dividend Announcement

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

Key Headlines Impacting Ross Stores

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

• Positive Sentiment: Zacks Research increased several EPS forecasts for Ross Stores, signaling improved profit expectations across 2027-2029. Buy 5 Stocks With High ROE as Markets Swing on War Skirmishes
• Positive Sentiment: The stock is being highlighted as a high-ROE, cash-generating retailer, which can attract investors looking for quality and stability during market volatility. Buy 5 Stocks With High ROE as Markets Swing on War Skirmishes
• Positive Sentiment: Ross Stores recently beat quarterly expectations, reporting EPS and revenue above estimates, which reinforces confidence in its operating momentum.
• Neutral Sentiment: Recent articles question how the investment narrative is evolving and compare Ross Stores with peers like Ollie’s Bargain Outlet, but these pieces are more commentary than new company-specific catalysts. How The Ross Stores (ROST) Investment Narrative Is Evolving Without New Analyst Targets
• Neutral Sentiment: Coverage also notes Ross Stores is outperforming the consumer discretionary sector, but this mainly reflects relative strength already supported by analyst optimism. Ross Stores Stock: Is ROST Outperforming the Consumer Discretionary Sector?

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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