Ross Stores, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on the stock and has a $175.00 price target.
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Lorraine Hutchinson’s rating is based on Ross Stores’ ability to effectively manage the challenges posed by tariffs while maintaining strong sales momentum. The company reported better-than-expected earnings per share for the second quarter, driven by a 2% increase in comparable sales, which was supported by both higher traffic and larger basket sizes. Additionally, Ross Stores has reinstated its full-year guidance, reflecting confidence in its operational strategies despite the tariff impacts.
Management’s strategic investments in product categories, such as Ladies apparel, have shown positive results, contributing to the overall sales growth. The company’s broad-based strength across various income demographics and regions, particularly in the Southeast and Midwest, further supports the Buy rating. Despite some margin pressures due to tariffs and increased distribution costs, the long-term earnings outlook remains stable, justifying the maintained price objective of $175.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 6.9% and a 54.59% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Ross Stores, and Capri Holdings.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $165.00 price target.