Ross Stores (NASDAQ:ROST) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Robert W. Baird raised its Ross Stores price target from $250 to $270 and maintained an “outperform” rating, implying approximately 17.9% upside from the cited $228.99 share price.
• Ross Stores reported a strong quarter, with revenue up 13.3% year over year to $6.26 billion and EPS of $2.66, significantly exceeding analyst estimates. Analysts expect the company to earn $7.81 per share for the current year.
• Analyst sentiment remains broadly positive, with 16 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average target of $251.12; however, the stock trades at a premium valuation and recently fell 2.4%.

Ross Stores (NASDAQ:ROST - Get Free Report) had its price target lifted by investment analysts at Robert W. Baird from $250.00 to $270.00 in a report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the apparel retailer's stock. Robert W. Baird's price target would suggest a potential upside of 17.91% from the company's current price.

Several other analysts also recently weighed in on ROST. Morgan Stanley set a $231.00 price objective on Ross Stores in a report on Wednesday, August 5th. Weiss Ratings reiterated a "buy (b)" rating on shares of Ross Stores in a report on Monday, July 6th. Truist Financial raised their target price on shares of Ross Stores from $270.00 to $290.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. Guggenheim restated a "buy" rating and issued a $290.00 price target on shares of Ross Stores in a report on Monday, April 27th. Finally, Zacks Research cut shares of Ross Stores from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Sixteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $251.12.

Ross Stores Trading Down 2.4%

ROST opened at $228.99 on Friday. The stock's fifty day moving average is $233.83 and its two-hundred day moving average is $221.74. The company has a market capitalization of $73.46 billion, a P/E ratio of 31.98, a PEG ratio of 2.61 and a beta of 0.86. Ross Stores has a 52 week low of $143.39 and a 52 week high of $257.00. The company has a quick ratio of 0.94, a current ratio of 1.54 and a debt-to-equity ratio of 0.12.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, beating analysts' consensus estimates of $1.95 by $0.71. Ross Stores had a return on equity of 38.42% and a net margin of 9.74%.The business had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.16 billion. During the same period in the previous year, the company posted $1.56 EPS. Ross Stores's revenue was up 13.3% on a year-over-year basis. Analysts forecast that Ross Stores will post 7.81 earnings per share for the current year.

Hedge Funds Weigh In On Ross Stores

Several institutional investors and hedge funds have recently added to or reduced their stakes in ROST. Woodline Partners LP grew its position in shares of Ross Stores by 39.9% in the 1st quarter. Woodline Partners LP now owns 27,875 shares of the apparel retailer's stock worth $3,562,000 after buying an additional 7,951 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in Ross Stores by 23.5% during 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 during the last quarter. NewEdge Advisors LLC lifted its position in Ross Stores by 35.8% during the second quarter. NewEdge Advisors LLC now owns 10,581 shares of the apparel retailer's stock valued at $1,350,000 after acquiring an additional 2,792 shares during the last quarter. Treasurer of the State of North Carolina boosted its stake in Ross Stores by 1.0% in the second quarter. Treasurer of the State of North Carolina now owns 150,491 shares of the apparel retailer's stock valued at $19,200,000 after acquiring an additional 1,508 shares in the last quarter. Finally, Main Street Financial Solutions LLC boosted its stake in Ross Stores by 2.2% in the second quarter. Main Street Financial Solutions LLC now owns 12,580 shares of the apparel retailer's stock valued at $1,605,000 after acquiring an additional 265 shares in the last quarter. Hedge funds and other institutional investors own 86.86% of the company's stock.

Key Stories Impacting Ross Stores

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

• Positive Sentiment: Strong Q2 results: Revenue rose 13.3% year over year to approximately $6.26 billion, ahead of the $6.16 billion consensus estimate. Diluted EPS reached $2.66, up from $1.56 a year ago and well above the roughly $1.95 analyst forecast. Comparable-store sales increased 10%, supported by higher customer traffic. Ross Stores raises annual profit forecast again on discounted apparel demand
• Positive Sentiment: Guidance raised: Ross increased fiscal 2026 EPS guidance to $8.61-$8.77, substantially above the prior outlook and the cited $7.31 consensus estimate. Third-quarter EPS guidance of $1.75-$1.83 and fourth-quarter guidance of $2.17-$2.26 also exceed consensus expectations. Ross Stores Reports Strong Second Quarter Sales and Earnings Results
• Positive Sentiment: Expansion and customer momentum: The company opened 47 stores during the quarter and raised its fiscal-year opening plan to 115 locations. Management cited gains among both existing and new customers, reinforcing expectations that the off-price value proposition is attracting shoppers from mainstream retailers. Ross Posts 13% Sales Jump as Inflation Drives Shoppers to Off-Price Retailers
• Neutral Sentiment: Valuation remains a concern: BTIG reiterated a Hold rating, arguing that strong execution is already reflected in ROST’s premium valuation. Investors may therefore require continued earnings beats and guidance increases to support further upside. Analyst Reiterates Hold on Ross Stores
• Negative Sentiment: One-time benefit and insider selling: Results included approximately $253 million in tariff refunds, which may not recur. Separately, reported insider activity over the past six months consisted of sales rather than purchases, modestly tempering the otherwise bullish reaction.

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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