Ross Stores (ROST)
NASDAQ:ROST
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Ross Stores
(NASDAQ:ROST)
Select Model
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Rating:77Outperform
Price Target:
$246.00
▲(11.23% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by strong financial performance (revenue growth, resilient profitability, and solid free cash flow with improving leverage) and supportive technical momentum (price above major moving averages with positive MACD). Valuation is the main offset due to a higher P/E and low dividend yield.
Positive Factors
Sustained revenue growth
Multi-year revenue expansion and recent re-acceleration indicate durable demand for off-price apparel and successful scaling. Sustained top-line growth supports purchasing leverage, margin resilience, and capacity to fund new stores and distribution, strengthening long-term earnings power.
Negative Factors
Material absolute debt level
Although leverage ratios improved, a sizable absolute debt load constrains financial flexibility if retail sales weaken. Interest servicing and principal commitments could limit capital allocation to expansion or inventory investment during downturns, raising structural risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
Multi-year revenue expansion and recent re-acceleration indicate durable demand for off-price apparel and successful scaling. Sustained top-line growth supports purchasing leverage, margin resilience, and capacity to fund new stores and distribution, strengthening long-term earnings power.
Read all positive factors
Ross Stores (ROST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.29B
Dividend Yield0.9%
Average Volume (3M)2.87M
Price to Earnings (P/E)23.3
Beta (1Y)0.57
Revenue Growth3.71%
EPS Growth0.65%
CountryUS
Employees107,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.00
Shares Outstanding322,356,780
10 Day Avg. Volume2,263,329
30 Day Avg. Volume2,870,289
Financial Highlights & Ratios
PEG Ratio5.96
Price to Book (P/B)9.75
Price to Sales (P/S)2.65
P/FCF Ratio27.32
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue3.17
Enterprise Value/Gross Profit11.35
Enterprise Value/Ebitda20.13
Forecast
1Y Price Target
$230.55Price Target Upside4.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)7.37
Revenue Forecast (FY)$24.41B
Ross Stores Business Overview & Revenue Model
Company Description
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names. Its stores primarily offer apparel, accessories, footwear, and home fashions...
How the Company Makes Money
Ross Stores makes money primarily by selling discounted branded merchandise through its physical retail stores under the Ross Dress for Less and dd’s DISCOUNTS banners. Revenue is generated at the point of sale from retail transactions across majo...
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 Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
Ross Stores reported strong sales growth and positive momentum in Q3, driven by successful expansion and a well-received branded strategy. Despite challenges from tariff-related costs and increased distribution expenses, the company maintained robust operating margins and raised its guidance for the future. The positive aspects, such as sales growth and strategic initiatives, outweigh the challenges, indicating a strong outlook.Positive Updates
Strong Sales Growth
Total sales for the third quarter grew 10% to $5.6 billion with comparable store sales increasing by 7%.
Negative Updates
Impact of Tariff-Related Costs
Tariff-related costs impacted earnings by approximately $0.05 per share in Q3 and $0.16 per share year-to-date.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Sales Growth
Total sales for the third quarter grew 10% to $5.6 billion with comparable store sales increasing by 7%.
Read all positive updates
Company Guidance
During the Ross Stores, Inc. third quarter 2025 earnings call, the company reported a robust 10% increase in total sales to $5.6 billion, with comparable store sales up by 7%. The operating margin reached 11.6% despite a negative impact of $0.05 per share from tariff-related costs. Earnings per share for the quarter were $1.58, up from $1.48 in the previous year. For the first nine months, earnings per share stood at $4.61, with sales totaling $16.1 billion, marking a 3% increase in comparable store sales year-over-year. Inventory levels were strategically increased by 9% overall and 15% per store to prepare for the holiday season. The company also opened 36 new Ross Stores and four DD's Discount stores in the quarter, concluding its 2025 expansion with a total of 90 new locations. Looking ahead, Ross Stores expects a 3% to 4% increase in comparable store sales for the fourth quarter, with earnings per share projected between $1.77 and $1.85. The company anticipates negligible tariff-related costs in the fourth quarter, leading to a full-year tariff impact of approximately $0.15 per share.Ross Stores Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
78
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.75B | 21.13B | 20.38B | 18.70B | 18.92B |
| Gross Profit | 6.36B | 5.87B | 5.58B | 4.75B | 5.21B |
| EBITDA | 3.58B | 3.27B | 2.97B | 2.46B | 2.69B |
| Net Income | 2.15B | 2.09B | 1.87B | 1.51B | 1.72B |
Balance Sheet | |||||
| Total Assets | 15.55B | 14.91B | 14.30B | 13.42B | 13.64B |
| Cash, Cash Equivalents and Short-Term Investments | 4.59B | 4.73B | 4.87B | 4.55B | 4.92B |
| Total Debt | 5.21B | 5.68B | 5.75B | 5.71B | 5.62B |
| Total Liabilities | 9.07B | 9.40B | 9.43B | 9.13B | 9.58B |
| Stockholders Equity | 6.48B | 5.51B | 4.87B | 4.29B | 4.06B |
Cash Flow | |||||
| Free Cash Flow | 2.21B | 1.64B | 1.75B | 1.04B | 1.18B |
| Operating Cash Flow | 3.03B | 2.36B | 2.51B | 1.69B | 1.74B |
| Investing Cash Flow | -819.27M | -637.46M | -762.81M | -654.07M | -557.84M |
| Financing Cash Flow | -2.34B | -1.86B | -1.43B | -1.41B | -1.15B |
Ross Stores Technical Analysis
Positive
221.16
Price Trends
205.64
Positive
193.12
Positive
169.53
Positive
Market Momentum
4.71
Negative
60.35
Neutral
87.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROST, the sentiment is Positive. The current price of 221.16 is above the 20-day moving average (MA) of 214.84, above the 50-day MA of 205.64, and above the 200-day MA of 169.53, indicating a bullish trend. The MACD of 4.71 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $71.29B | 23.35 | 36.70% | 0.90% | 3.71% | 0.65% | |
76 Outperform | $178.86B | 30.68 | 59.53% | 1.07% | 4.53% | 6.52% | |
68 Neutral | $5.87B | 13.74 | 17.66% | ― | 11.09% | 51.51% | |
64 Neutral | $9.80B | 12.79 | 22.98% | 2.45% | 0.29% | 3.65% | |
62 Neutral | $21.21B | 31.09 | 39.79% | ― | 6.80% | 20.46% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $3.05B | 11.22 | 12.12% | 2.09% | -1.15% | -0.98% |
* Consumer Cyclical Sector Average
ROST
Ross Stores
221.16
78.92
55.48%
AEO
American Eagle
18.32
8.01
77.62%
GAP
Gap Inc
26.30
7.59
40.56%
TJX
TJX Companies
161.60
32.57
25.25%
URBN
Urban Outfitters
68.60
20.43
42.41%
BURL
Burlington Stores
333.73
94.28
39.37%
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.