Ross Stores (ROST) declines more Than market: Some information for investors

Ross Stores (ROST - Free Report) ended the recent trading session at $149.98, demonstrating a -1.34% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.08%.

Heading into today, shares of the discount retailer had gained 1.86% over the past month, outpacing the Retail-Wholesale sector's loss of 3.47% and lagging the S&P 500's gain of 4.03%.

The investment community will be paying close attention to the earnings performance of Ross Stores in its upcoming release. The company's earnings per share (EPS) are projected to be $1.4, reflecting a 5.41% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.38 billion, indicating a 6.18% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.2 per share and a revenue of $22.12 billion, signifying shifts of -1.9% and +4.67%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Ross Stores. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% lower. Ross Stores currently has a Zacks Rank of #3 (Hold).

Investors should also note Ross Stores's current valuation metrics, including its Forward P/E ratio of 24.51. This valuation marks a premium compared to its industry average Forward P/E of 22.86.

We can also see that ROST currently has a PEG ratio of 2.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.62.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.

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

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. 

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