Yahoo Finance Ross Stores (ROST) Stock Drops Despite Market Gains: Important Facts to Note
Ross Stores (ROST) closed the latest trading day at $146.08, indicating a -1.79% change from the previous session's end. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.3%.
Heading into today, shares of the discount retailer had gained 6.93% over the past month, outpacing the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 3.38% in that time.
Market participants will be closely following the financial results of Ross Stores in its upcoming release. The company is forecasted to report an EPS of $1.49, showcasing a 12.88% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.24 billion, indicating a 6.1% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.97 per share and a revenue of $21.2 billion, indicating changes of +7.37% and +4.05%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Ross Stores. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. Ross Stores is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Ross Stores is presently being traded at a Forward P/E ratio of 24.92. This valuation marks a premium compared to its industry's average Forward P/E of 21.41.
We can additionally observe that ROST currently boasts a PEG ratio of 2.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 2.54 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Ross Stores, Inc. (ROST) : Free Stock Analysis Report
