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Ross Stores (ROST) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Ross Stores (ROST) closed at $77.16, marking a -1.67% move from the previous day. This change lagged the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 1.63%.

Prior to today's trading, shares of the discount retailer had lost 3.87% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.53% and the S&P 500's loss of 6.62% in that time.

ROST will be looking to display strength as it nears its next earnings release, which is expected to be March 5, 2019. In that report, analysts expect ROST to post earnings of $1.13 per share. This would mark year-over-year growth of 15.31%. Meanwhile, our latest consensus estimate is calling for revenue of $4.06 billion, down 0.26% from the prior-year quarter.

ROST's full-year Zacks Consensus Estimates are calling for earnings of $4.19 per share and revenue of $14.93 billion. These results would represent year-over-year changes of +25.45% and +5.61%, respectively.

Investors might also notice recent changes to analyst estimates for ROST. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.49% higher within the past month. ROST is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ROST is holding a Forward P/E ratio of 18.73. Its industry sports an average Forward P/E of 17.84, so we one might conclude that ROST is trading at a premium comparatively.

Also, we should mention that ROST has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.43 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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