Ross Stores (NASDAQ:ROST) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded Ross Stores from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy,” with 15 Buy ratings and six Holds and an average price target of $239.12.
• Ross Stores reported quarterly EPS of $2.02, exceeding the $1.73 consensus estimate, while revenue reached $6.01 billion and increased 20.6% year over year.
• The stock opened at $253.22, near its 12-month high of $257.00, and institutional investors own 86.86% of shares; major holders including Norges Bank, Marshall Wace, Bank of America and Viking Global recently increased their stakes.

Ross Stores (NASDAQ:ROST - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

Several other analysts have also recently weighed in on the stock. UBS Group reiterated a "neutral" rating on shares of Ross Stores in a research note on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $257.00 price target on shares of Ross Stores in a research report on Friday, May 22nd. Truist Financial increased their price target on Ross Stores from $270.00 to $290.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Telsey Advisory Group raised their price objective on Ross Stores from $240.00 to $265.00 and gave the stock an "outperform" rating in a research note on Friday, May 22nd. Finally, Sanford C. Bernstein reiterated a "market perform" rating and set a $230.00 target price on shares of Ross Stores in a research report on Friday, May 22nd. Fifteen research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $239.12.

Ross Stores Price Performance

Ross Stores stock opened at $253.22 on Tuesday. The company has a market capitalization of $81.23 billion, a price-to-earnings ratio of 35.37, a PEG ratio of 2.82 and a beta of 0.86. The company has a current ratio of 1.54, a quick ratio of 0.94 and a debt-to-equity ratio of 0.12. Ross Stores has a 12 month low of $141.91 and a 12 month high of $257.00. The stock's 50 day moving average is $230.64 and its 200-day moving average is $217.43.

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank bought a new position in Ross Stores in the fourth quarter valued at about $868,360,000. Marshall Wace LLP lifted its holdings in shares of 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 acquiring an additional 1,726,324 shares during the last quarter. Bank of America Corp DE lifted its holdings 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 worth $1,222,523,000 after acquiring an additional 1,657,008 shares during the last quarter. Viking Global Investors LP boosted its stake in shares of Ross Stores by 56.5% in the 4th quarter. Viking Global Investors LP now owns 3,167,479 shares of the apparel retailer's stock valued at $570,590,000 after purchasing an additional 1,143,611 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in shares of Ross Stores in the 4th quarter valued at approximately $204,750,000. 86.86% of the stock is currently owned by institutional investors and hedge funds.

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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