Ross Stores (NASDAQ:ROST) Rating Lowered to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ross Stores from “strong-buy” to “buy,” though the broader analyst view remains positive with a Moderate Buy consensus and a price target of $233.18.
• Recent analyst price targets have been raised by several firms, including Barclays, Wells Fargo, Telsey Advisory Group, and JPMorgan, reflecting continued confidence in the retailer’s outlook.
• Ross Stores beat earnings and revenue expectations in its latest quarter, reporting $2.02 EPS on $6.01 billion in revenue, and it also provided upbeat FY2026 guidance.

Ross Stores (NASDAQ:ROST - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Several other analysts have also recently issued reports on the company. Barclays increased their price objective on Ross Stores from $242.00 to $260.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Wells Fargo & Company boosted their target price on Ross Stores from $235.00 to $245.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. Telsey Advisory Group upped their price target on Ross Stores from $240.00 to $265.00 and gave the stock an "outperform" rating in a report on Friday, May 22nd. JPMorgan Chase & Co. increased their price target on Ross Stores from $248.00 to $251.00 and gave the company an "overweight" rating in a research report on Monday, May 18th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Ross Stores in a research report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $233.18.

Ross Stores Stock Performance

NASDAQ ROST opened at $232.80 on Friday. The company has a market cap of $74.68 billion, a P/E ratio of 32.51, a P/E/G ratio of 2.61 and a beta of 0.86. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.54 and a quick ratio of 0.94. The stock has a 50-day moving average of $226.33 and a two-hundred day moving average of $206.35. Ross Stores has a 1-year low of $124.49 and a 1-year high of $242.81.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The apparel retailer reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.73 by $0.29. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%. The business had revenue of $6.01 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter in the prior year, the company earned $1.47 earnings per share. The business's quarterly revenue was up 20.6% on a year-over-year basis. 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. As a group, analysts anticipate that Ross Stores will post 7.74 EPS for the current year.

Insider Buying and Selling at Ross Stores

In other news, CMO Karen Sykes sold 5,506 shares of the company's stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $213.40, for a total transaction of $1,174,980.40. Following the completion of the transaction, the chief marketing officer directly owned 104,648 shares of the company's stock, valued at approximately $22,331,883.20. This represents a 5.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Michael J. Hartshorn sold 15,813 shares of the stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $214.91, for a total value of $3,398,371.83. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.10% of the company's stock.

Institutional Trading of Ross Stores

Several institutional investors have recently modified their holdings of ROST. Woodline Partners LP raised its stake in Ross Stores by 39.9% during the 1st quarter. Woodline Partners LP now owns 27,875 shares of the apparel retailer's stock worth $3,562,000 after acquiring an additional 7,951 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in Ross Stores by 23.5% in the first quarter. Geneos Wealth Management Inc. now owns 615 shares of the apparel retailer's stock valued at $79,000 after acquiring an additional 117 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of 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 purchasing an additional 2,792 shares during the last quarter. Treasurer of the State of North Carolina grew its holdings in shares of 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 purchasing an additional 1,508 shares during the last quarter. Finally, Main Street Financial Solutions LLC grew its holdings in shares of 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 worth $1,605,000 after purchasing an additional 265 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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