Want to see ROST full AI Analyst Report?
Top Page
Ross Stores
(NASDAQ:ROST)
Select Model
Select Model
Rating:78Outperform
Price Target:
$265.00
▲(16.32% Upside)
Action:Reiterated
Date:06/20/26
ROST scores well primarily on strong financial performance (healthy margins, robust and growing free cash flow, and improving leverage/strong ROE). Technicals are supportive with price above major moving averages and positive MACD. The main offset is valuation (P/E ~32 with a low dividend yield), while recent corporate governance approvals add minor support.
Positive Factors
Cash Generation
Ross’s strong and rising free cash flow indicates durable internal funding for share repurchases, store investment, and debt reduction. Consistent high FCF relative to net income supports operational resilience and strategic optionality over the next several quarters.
Negative Factors
Gross Margin Compression
A sustained ~600–800bp decline in gross margin would materially pressure operating profits and cash flow. If driven by higher product costs, increased promotions, or unfavorable mix, margin erosion could reverse ROE gains and require either cost cuts or higher volumes to restore prior profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Ross’s strong and rising free cash flow indicates durable internal funding for share repurchases, store investment, and debt reduction. Consistent high FCF relative to net income supports operational resilience and strategic optionality over the next several quarters.
Read all positive factors
Ross Stores Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of retail locations, highlighting the company's expansion strategy and market penetration. A growing store count can signal aggressive growth and increased market presence.
Indicates the total number of retail locations, highlighting the company's expansion strategy and market penetration. A growing store count can signal aggressive growth and increased market presence.
Data provided by:
The Fly
The FlyRoss Stores (ROST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.46B
Dividend Yield0.9%
Average Volume (3M)3.36M
Price to Earnings (P/E)29.6
Beta (1Y)0.59
Revenue Growth11.86%
EPS Growth13.46%
CountryUS
Employees107,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)7.22
Shares Outstanding320,781,070
10 Day Avg. Volume2,966,792
30 Day Avg. Volume3,358,624
Financial Highlights & Ratios
PEG Ratio6.01
Price to Book (P/B)9.75
Price to Sales (P/S)2.65
P/FCF Ratio27.32
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.17
Enterprise Value/Gross Profit11.20
Enterprise Value/Ebitda19.71
Forecast
1Y Price Target
$260.75Price Target Upside14.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)7.82
Revenue Forecast (FY)$25.15B
Ross Stores Business Overview & Revenue Model
Company Description
Ross Stores, Inc., through its various subsidiaries, manages a chain of off-price retail establishments focusing on apparel and home goods. These stores operate under two main brand names: Ross Dress for Less and dd's DISCOUNTS. Their product sele...
How the Company Makes Money
Ross Stores makes money primarily by selling discounted merchandise to consumers in its physical retail stores (Ross Dress for Less and dd’s DISCOUNTS). Revenue is generated largely from retail sales of apparel and home fashion products, with addi...
Ross Stores Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The quarter showed resilient top-line growth (+3% to $5.0B), stable operating margin (12.2%) and executional positives including sequential improvement, strong category (cosmetics) performance, dd's momentum, continued share repurchases and progress on the branded strategy. Offsetting these positives are meaningful near-term risks from tariffs (material margin and EPS pressure in Q2), withdrawn annual guidance due to uncertain trade and macro dynamics, modest net income decline and sourcing concentration in China that creates receipt and margin risk. Overall, the call balanced operational strengths and strategic progress against tangible near-term macro and tariff headwinds.Positive Updates
Top-Line Growth and EPS Stability
Total sales grew 3% to $5.0 billion and comparable store sales were flat year-over-year. Diluted earnings per share were $1.47 versus $1.46 a year ago (essentially flat), and the company reported that sales and earnings performed at the high end of expectations for the quarter.
Negative Updates
Tariff-Driven Margin Pressure
Merchandise margin declined ~45 basis points in Q1, primarily due to higher ocean freight costs and the initial impact of tariffs (including goods that were on the water when tariffs increased). Company expects a $0.11–$0.16 EPS headwind in Q2 from announced tariffs and projects a 90–120 basis point negative impact to Q2 operating margin from tariffs.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth and EPS Stability
Total sales grew 3% to $5.0 billion and comparable store sales were flat year-over-year. Diluted earnings per share were $1.47 versus $1.46 a year ago (essentially flat), and the company reported that sales and earnings performed at the high end of expectations for the quarter.
Read all positive updates
Company Guidance
Ross withdrew its full-year guidance and gave a guarded Q2 outlook for the 13 weeks ending Aug. 2, 2025: comparable-store sales flat to +3%, total sales up 2%–6% year-over-year, diluted EPS $1.40–$1.55 (which includes a $0.11–$0.16 tariff-related headwind), operating margin 10.7%–11.4% (incorporating a 90–120 bps negative tariff impact, mostly to merchandise margin), net interest income ≈ $29M, an effective tax rate of 24%–25% and ~325M diluted shares outstanding; management also expects to open 31 stores in Q2 (28 Ross, 3 dd’s), remains on track to repurchase $1.05B of stock in 2025 (after buying 2M shares for $263M in Q1 under a $2.1B authorization), and noted quarter‑end inventory metrics of consolidated +8%, average store inventories +4% and packaway at 41%.Ross Stores Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.78B | 22.75B | 21.13B | 20.38B | 18.70B | 18.92B |
| Gross Profit | 6.73B | 6.36B | 5.87B | 5.58B | 4.75B | 5.21B |
| EBITDA | 3.83B | 3.75B | 3.27B | 2.97B | 2.46B | 2.69B |
| Net Income | 2.32B | 2.15B | 2.09B | 1.87B | 1.51B | 1.72B |
Balance Sheet | ||||||
| Total Assets | 15.55B | 15.55B | 14.91B | 14.30B | 13.42B | 13.64B |
| Cash, Cash Equivalents and Short-Term Investments | 4.13B | 4.59B | 4.73B | 4.87B | 4.55B | 4.92B |
| Total Debt | 4.72B | 5.21B | 5.68B | 5.75B | 5.71B | 5.62B |
| Total Liabilities | 9.25B | 9.36B | 9.40B | 9.43B | 9.13B | 9.58B |
| Stockholders Equity | 6.30B | 6.19B | 5.51B | 4.87B | 4.29B | 4.06B |
Cash Flow | ||||||
| Free Cash Flow | 2.63B | 2.21B | 1.64B | 1.75B | 1.04B | 1.18B |
| Operating Cash Flow | 3.45B | 3.03B | 2.36B | 2.51B | 1.69B | 1.74B |
| Investing Cash Flow | -820.85M | -819.27M | -637.46M | -762.81M | -654.07M | -557.84M |
| Financing Cash Flow | -2.28B | -2.34B | -1.86B | -1.43B | -1.41B | -1.15B |
Ross Stores Technical Analysis
Negative
227.82
Price Trends
224.82
Negative
217.52
Negative
193.51
Positive
Market Momentum
-3.72
Positive
39.01
Neutral
19.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROST, the sentiment is Negative. The current price of 227.82 is above the 20-day moving average (MA) of 226.87, above the 50-day MA of 224.82, and above the 200-day MA of 193.51, indicating a neutral trend. The MACD of -3.72 indicates Positive momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROST.
Ross Stores Risk Analysis
Ross Stores disclosed 20 risk factors in its most recent earnings report. Ross Stores reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ross Stores Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $170.41B | 29.86 | 59.66% | 1.07% | 8.06% | 21.36% | |
78 Outperform | $68.46B | 29.56 | 38.42% | 0.90% | 11.86% | 13.46% | |
76 Outperform | $6.06B | 13.37 | 17.64% | ― | 11.23% | 8.96% | |
73 Outperform | $6.93B | 7.43 | 26.47% | 2.45% | 1.58% | 11.13% | |
68 Neutral | $19.71B | 32.12 | 37.72% | ― | 10.60% | 19.47% | |
62 Neutral | $2.98B | 10.66 | 17.24% | 2.09% | 6.22% | 65.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
ROST
Ross Stores
213.43
83.84
64.69%
AEO
American Eagle
16.46
6.86
71.51%
GAP
Gap Inc
19.25
-2.77
-12.60%
TJX
TJX Companies
154.26
30.60
24.75%
URBN
Urban Outfitters
70.72
0.08
0.11%
BURL
Burlington Stores
313.18
62.80
25.08%
Ross Stores Corporate Events
Executive/Board ChangesShareholder Meetings
Ross Stores Shareholders Approve Directors, Pay and Equity Plan
Positive
May 27, 2026
At its virtual Annual Meeting of Stockholders held on May 20, 2026, Ross Stores, Inc. shareholders elected nine directors to one-year terms expiring at the 2027 annual meeting, with all board nominees receiving solid support. Investors also backed...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.