Ross Stores, Inc. (NASDAQ:ROST) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a bullish outlook: Ross Stores has a “Moderate Buy” consensus from 21 analysts, with 15 buys and six holds. The average 12-month price target is approximately $263.76.
• Recent results exceeded expectations: Quarterly EPS was $2.66 versus the $1.95 consensus, while revenue rose 13.3% year over year to $6.26 billion and comparable-store sales increased 10%.
• Management raised its full-year forecast: Fiscal 2026 EPS guidance increased to $8.61–$8.77, and the company plans to open 115 stores. However, about $253 million in tariff refunds benefited operating income, and some analysts caution that strong execution may already be reflected in the stock’s premium valuation.

Shares of Ross Stores, Inc. (NASDAQ:ROST - Get Free Report) have been given a consensus rating of "Moderate Buy" by the twenty-one brokerages that are presently covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $263.7647.

A number of analysts have recently commented on the company. Guggenheim restated a "buy" rating and set a $290.00 price objective on shares of Ross Stores in a report on Monday, April 27th. The Goldman Sachs Group reissued a "buy" rating and set a $270.00 price target on shares of Ross Stores in a research report on Friday, May 22nd. Weiss Ratings restated a "buy (b)" rating on shares of Ross Stores in a report on Monday, July 6th. Evercore set a $290.00 price objective on Ross Stores in a report on Friday. Finally, Wall Street Zen lowered Ross Stores from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 20th.

Ross Stores News Roundup

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

• Positive Sentiment: Q2 results exceeded expectations: Ross reported diluted EPS of $2.66 versus the approximately $1.95 consensus estimate, while revenue rose 13.3% year over year to $6.26 billion, ahead of the $6.16 billion forecast. Comparable-store sales increased 10%, supported by stronger customer traffic, improved merchandising and higher margins. Ross Stores Q2 Earnings Top Estimates on Strong Sales Growth Momentum
• Positive Sentiment: Higher outlook signals continued momentum: Management raised fiscal 2026 EPS guidance to $8.61-$8.77, well above the prior outlook and the roughly $7.31 analyst consensus. Third- and fourth-quarter EPS guidance also came in above expectations. The company cited resilient demand for discounted apparel and accessories and raised its fiscal-year store-opening plan to 115 locations. Ross Stores raises annual profit forecast again on discounted apparel demand
• Positive Sentiment: Analysts raised price targets: JPMorgan increased its target to $272 and maintained an Overweight rating, while Robert W. Baird raised its target to $270 and kept an Outperform rating. These revisions reinforce expectations that Ross is gaining market share from rivals. Analysts Boost Forecasts on Ross Stores
• Neutral Sentiment: Approximately $253 million of tariff refunds benefited second-quarter operating income, creating a potential comparison headwind when assessing underlying profitability. Ross Stores Q2 Sales Rise 13% as Diluted EPS Reaches $2.66
• Negative Sentiment: BTIG analyst Robert Drbul reiterated a Hold rating, indicating that strong execution may already be reflected in ROST’s premium valuation. Recent insider activity also showed sales but no purchases, a modest sentiment caution. Analyst Reiterates Hold on Ross Stores

Hedge Funds Weigh In On Ross Stores

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in Ross Stores in the second quarter valued at about $5,938,711,000. State Street Corp boosted its position in shares of Ross Stores by 0.7% in the fourth quarter. State Street Corp now owns 13,911,953 shares of the apparel retailer's stock worth $2,506,099,000 after buying an additional 99,975 shares during the period. Bank of America Corp DE grew its stake in shares of 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 valued at $1,222,523,000 after buying an additional 1,657,008 shares in the last quarter. Primecap Management Co. CA acquired a new stake in shares of Ross Stores in the second quarter valued at about $1,937,995,000. Finally, Wellington Management Group LLP raised its holdings in shares of Ross Stores by 89.2% during the 2nd quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer's stock valued at $1,408,148,000 after buying an additional 3,118,591 shares during the period. Hedge funds and other institutional investors own 86.86% of the company's stock.

Ross Stores Stock Performance

Shares of ROST stock opened at $239.04 on Monday. The firm's 50-day simple moving average is $233.81 and its 200-day simple moving average is $222.09. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.61 and a quick ratio of 0.98. Ross Stores has a 1-year low of $143.39 and a 1-year high of $257.00. The firm has a market cap of $76.68 billion, a P/E ratio of 28.94, a PEG ratio of 2.30 and a beta of 0.86.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 EPS for the quarter, topping the consensus estimate of $1.95 by $0.71. The firm had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.16 billion. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. Ross Stores's revenue for the quarter was up 13.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.56 earnings per share. As a group, equities analysts forecast that Ross Stores will post 8.13 EPS for the current year.

Ross Stores Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be paid a dividend of $0.445 per share. This represents a $1.78 annualized dividend and a yield of 0.7%. The ex-dividend date is Tuesday, September 8th. Ross Stores's payout ratio is currently 21.55%.

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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