Ross Stores FY2027 EPS Estimate Raised by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Ross Stores to $7.38 from $7.36, slightly above the current consensus forecast of $7.33 per share.
• Analyst sentiment remains positive overall, with 16 Buy ratings and 5 Hold ratings, and a MarketBeat consensus rating of Moderate Buy with an average price target of $213.29.
• Ross Stores recently reported strong quarterly results, posting EPS of $2.00 versus $1.90 expected and revenue of $6.64 billion, while also raising its quarterly dividend to $0.445 per share.

Ross Stores, Inc. (NASDAQ:ROST - Free Report) - Erste Group Bank increased their FY2027 earnings per share (EPS) estimates for Ross Stores in a research report issued to clients and investors on Tuesday, May 12th. Erste Group Bank analyst H. Engel now expects that the apparel retailer will earn $7.38 per share for the year, up from their previous forecast of $7.36. The consensus estimate for Ross Stores' current full-year earnings is $7.33 per share.

A number of other equities research analysts have also recently weighed in on the stock. Sanford C. Bernstein set a $200.00 price objective on shares of Ross Stores in a report on Wednesday, March 4th. UBS Group set a $208.00 price objective on shares of Ross Stores in a report on Thursday, March 5th. JPMorgan Chase & Co. upped their price objective on shares of Ross Stores from $215.00 to $232.00 and gave the stock an "overweight" rating in a report on Monday, February 23rd. Barclays upped their price objective on shares of Ross Stores from $205.00 to $221.00 and gave the stock an "overweight" rating in a report on Monday, March 2nd. Finally, Guggenheim reissued a "buy" rating and issued a $290.00 target price on shares of Ross Stores in a research note on Monday, April 27th. Sixteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Ross Stores presently has a consensus rating of "Moderate Buy" and an average price target of $213.29.

Ross Stores Price Performance

NASDAQ:ROST opened at $212.75 on Monday. The company has a market capitalization of $68.54 billion, a PE ratio of 32.19, a P/E/G ratio of 2.89 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.58 and a quick ratio of 1.04. Ross Stores has a 1-year low of $124.49 and a 1-year high of $231.16. The firm's 50-day moving average price is $218.48 and its 200-day moving average price is $195.21.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its earnings results on Tuesday, March 3rd. The apparel retailer reported $2.00 earnings per share for the quarter, topping analysts' consensus estimates of $1.90 by $0.10. The firm had revenue of $6.64 billion for the quarter, compared to the consensus estimate of $6.42 billion. Ross Stores had a net margin of 9.43% and a return on equity of 36.70%. The company's revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.65 EPS.

Ross Stores Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were issued a dividend of $0.445 per share. The ex-dividend date was Friday, March 13th. This is a positive change from Ross Stores's previous quarterly dividend of $0.41. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores's dividend payout ratio is currently 26.93%.

Insider Activity

In other news, Director Patricia H. Mueller sold 1,881 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $213.13, for a total transaction of $400,897.53. Following the sale, the director owned 2,159 shares in the company, valued at $460,147.67. This represents a 46.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Michael J. Hartshorn sold 15,813 shares of the 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 sale, the chief operating officer owned 116,028 shares in the company, valued at approximately $24,935,577.48. The trade was a 11.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 25,756 shares of company stock worth $5,521,004 over the last 90 days. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ross Stores

Several institutional investors and hedge funds have recently added to or reduced their stakes in ROST. Norges Bank purchased a new stake in Ross Stores in the fourth quarter worth approximately $868,360,000. Holocene Advisors LP purchased a new stake in Ross Stores in the third quarter worth approximately $351,763,000. Marshall Wace LLP boosted its holdings in Ross Stores by 1,908.8% in the third quarter. Marshall Wace LLP now owns 1,816,763 shares of the apparel retailer's stock worth $276,857,000 after purchasing an additional 1,726,324 shares during the last quarter. Bank of America Corp DE boosted its holdings in Ross Stores by 20.9% in the second quarter. Bank of America Corp DE now owns 9,582,401 shares of the apparel retailer's stock worth $1,222,523,000 after purchasing an additional 1,657,008 shares during the last quarter. Finally, Viking Global Investors LP boosted its holdings in Ross Stores by 56.5% in the fourth quarter. Viking Global Investors LP now owns 3,167,479 shares of the apparel retailer's stock worth $570,590,000 after purchasing an additional 1,143,611 shares during the last quarter. Hedge funds and other institutional investors own 86.86% of the company's stock.

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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