Ross Stores (NASDAQ:ROST) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its price target on Ross Stores from $261 to $270 and kept a buy rating, implying about 16.5% upside from the current share price.
• Ross Stores beat Q1 earnings and revenue estimates, reporting EPS of $2.02 versus $1.73 expected and revenue of $6.01 billion versus $5.64 billion forecast, with sales up 20.6% year over year.
• The company raised guidance for fiscal 2026 EPS and Q2 EPS, while multiple analysts remain positive and institutional investors continue to hold a large stake in the stock.

Ross Stores (NASDAQ:ROST - Get Free Report) had its price objective lifted by equities researchers at Citigroup from $261.00 to $270.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the apparel retailer's stock. Citigroup's price target indicates a potential upside of 16.48% from the stock's current price.

ROST has been the topic of a number of other research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Ross Stores in a research note on Wednesday, April 8th. Guggenheim restated a "buy" rating and issued a $290.00 price objective on shares of Ross Stores in a report on Monday, April 27th. Sanford C. Bernstein restated a "market perform" rating and issued a $230.00 price objective on shares of Ross Stores in a report on Friday. Truist Financial initiated coverage on Ross Stores in a report on Monday. They issued a "buy" rating and a $270.00 price objective on the stock. Finally, Telsey Advisory Group restated an "outperform" rating and issued a $240.00 price objective on shares of Ross Stores in a report on Thursday, March 26th. Seventeen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $223.00.

Ross Stores Price Performance

Ross Stores stock traded up $14.61 during trading on Friday, reaching $231.80. The company had a trading volume of 1,650,287 shares, compared to its average volume of 2,552,146. The firm's 50-day simple moving average is $218.62 and its 200 day simple moving average is $196.78. Ross Stores has a 1-year low of $124.49 and a 1-year high of $235.80. The firm has a market capitalization of $74.67 billion, a PE ratio of 35.03, a price-to-earnings-growth ratio of 2.88 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.04 and a current ratio of 1.58.

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 analysts' consensus estimates of $1.73 by $0.29. Ross Stores had a net margin of 9.43% and a return on equity of 36.70%. The firm had revenue of $6.01 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter last year, the company earned $1.47 EPS. The firm's revenue for the quarter was up 20.6% compared to the same quarter last year. 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, equities research analysts anticipate that Ross Stores will post 7.37 earnings per share for the current fiscal year.

Insider Transactions at Ross Stores

In other news, COO Michael J. Hartshorn sold 15,813 shares of Ross Stores stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $214.91, for a total transaction of $3,398,371.83. Following the transaction, 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CMO Karen Sykes sold 5,506 shares of Ross Stores stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $213.40, for a total value of $1,174,980.40. Following the transaction, the chief marketing officer owned 104,648 shares in the company, valued at approximately $22,331,883.20. This represents a 5.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,756 shares of company stock worth $5,521,004 in the last quarter. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ROST. Norges Bank purchased a new position in shares of Ross Stores during the 4th quarter worth $868,360,000. Holocene Advisors LP acquired a new stake in shares of Ross Stores during the 3rd quarter worth about $351,763,000. Marshall Wace LLP increased its position in shares of Ross Stores by 1,908.8% during the 3rd 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 increased its position in shares of Ross Stores by 20.9% during the 2nd 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 increased its position in shares of Ross Stores by 56.5% during the 4th 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.

Trending Headlines about Ross Stores

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

• Positive Sentiment: Ross Stores reported Q1 EPS of $2.02, well above estimates, and revenue of $6.01 billion, also ahead of forecasts. Ross Stores Reports Robust First Quarter Sales and Earnings Results, Significantly Exceeding Guidance
• Positive Sentiment: Comparable sales rose 17% year over year, showing strong demand at Ross stores as shoppers continue trading down for value. Rost Stores Q1 Earnings & Sales Beat Estimates, Comp Up 17% Y/Y
• Positive Sentiment: Management raised fiscal 2026 EPS guidance and increased its comparable sales outlook, signaling confidence in continued momentum. Ross Stores Lifts Outlook as Sales Jump
• Neutral Sentiment: Analysts and market commentary say the stock is benefiting from a broader theme of resilient off-price retail, with Ross and TJX seen as structural winners in a cautious consumer environment. Ross Stores, TJX Earnings Show Off-Price Is On Target Amid High Gas Prices
• Negative Sentiment: Some commentary warns that tougher comparisons lie ahead, which could make it harder for Ross Stores to keep delivering the same pace of growth. Ross Stores: Q1 Was A Great Quarter, But There Are Tougher Comps Ahead

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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