Ross Stores, Inc. ROST has emerged as one of the strongest performers within its industry over the past year. Shares of ROST have surged 79.6% in the past year, significantly outperforming the broader market and most industry peers. Over the same period, the S&P 500 advanced 24.4%, the Retail - Discount Stores industry gained 14.1% and the broader Retail-Wholesale sector rose 2.9%.
ROST Stock’s Past Year Performance
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As of the latest trading session, Ross Stores closed at $228.6, just 5.9% below its 52-week high of $242.81 reached on June 12, 2026. The stock is trading above both its 50- and 200-day moving averages, signaling bullish sentiment.
ROST Trades Above 50 and 200-Day Moving Average
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What’s Fueling Ross Stores’ Rally?
Ross Stores continues to gain from strong customer acquisition and traffic growth, which have been key drivers of its comparable-store sales performance. Transaction growth has accelerated for three straight quarters, supported by double-digit customer count gains across income groups, age demographics and ethnicities. Younger shoppers, in particular, are responding well to refreshed marketing efforts, improved store presentation and compelling branded assortments.
The company’s merchandising strength is another major catalyst. Ross Stores is benefiting from healthy closeout availability in the marketplace, deeper vendor relationships and improved access to branded deals. Its ability to quickly secure seasonally relevant merchandise has helped the company chase demand effectively while maintaining its value proposition.
Operational execution also remains solid. Ross Stores delivered merchandise margin gains and operating margin expansion in the first quarter, aided by occupancy leverage and lower distribution costs. The company’s disciplined cost structure, combined with strong sales productivity, continues to support earnings growth even as it invests in stores, marketing and customer experience.
Store expansion adds another layer of growth. Ross Stores plans to open about 110 stores this year, including Ross and dd’s DISCOUNTS locations, while recent openings are performing well across new and existing markets. Continued expansion in underpenetrated regions, including the Northeast, should help broaden the company’s customer reach and reinforce its long-term growth runway.
Upward Earnings Estimate Revisions Signal Confidence in ROST
Ross Stores remains optimistic about its growth prospects, backed by solid sales momentum and improving execution. Management expects second-quarter comparable sales growth of 6-7% and raised its full-year fiscal 2026 outlook, projecting comparable sales growth of 6-7% and earnings per share of $7.50-$7.74.
While acknowledging potential macroeconomic uncertainties, including higher fuel costs and consumer spending pressures, the company believes its value-focused business model, strong customer acquisition trends, merchandising initiatives and expanding store base position it well to sustain healthy sales and earnings growth over the remainder of the year.
Reflecting optimism around ROST, analysts have revised their EPS estimates upward. In the past 30 days, analysts have increased their fiscal 2026 and 2027 estimates by 1.3% to $7.74 and 1.3% to $8.48 per share, respectively. These estimates indicate expected year-over-year growth rates of around 17.1% and 9.6%, respectively.
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ROST Stock’s Valuation
Ross Stores is currently trading at a discount relative to its industry peers. ROST stock trades at a forward 12-month price-to-earnings (P/E) ratio of 28.47, lower than the industry’s average of 31.39.
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Here’s Why ROST Can Be an Attractive Play
Ross Stores continues to execute well across key growth drivers, including customer acquisition, merchandising, operational efficiency and store expansion. Strong comparable sales, margin expansion and raised earnings guidance reflect the strength of its value-focused business model, while positive estimate revisions underscore growing analyst confidence.
Although macroeconomic uncertainties such as higher fuel costs and consumer spending pressures remain, ROST's resilient off-price model and attractive valuation relative to the industry support a favorable long-term investment case. Currently, this Zacks Rank #1 (Strong Buy) stock appears well positioned for investors seeking exposure to the renewable fuels market and long-term growth opportunities.
Other Stocks to Consider
Five Below, Inc. FIVE, which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.7% and 34.3%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Victoria’s Secret & Co. VSXY operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 8.8% and 53.7%, respectively, from the year-ago figures. VSXY delivered a trailing four-quarter earnings surprise of 55.1%, on average.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
