Ross Stores, Inc. (ROST), valued at a market cap of $42.8 billion, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brands across the United States. Based in Dublin, California, the company specializes in apparel, accessories, footwear, and home fashion. ROST is set to report its Q1 earnings on Thursday, May 22.

Analysts anticipate that ROST will report a profit of $1.42 per share. This figure reflects a decrease of 2.7% compared to the $1.46 per share reported in the same quarter last year. Notably, ROST has exceeded analysts’ earnings estimates in each of the past four quarters, highlighting its consistent financial performance.

For the current fiscal year, estimates indicate that ROST is expected to achieve earnings per share (EPS) of $6.41, up 1.4% from $6.32 in fiscal 2024. Looking ahead, earnings are projected to rise 7.8% year-over-year, reaching $6.91 per share in fiscal 2026.

Over the past year, ROST shares have gained 4.3%. However, this increase lags behind the S&P 500 Index’s growth of 8.4% and the Consumer Discretionary Select Sector SPDR Fund’s returns of 12.4% over the same period.

Following its Q4 earnings release on March 4, ROST stock experienced a slight decline. The company reported sales of $5.9 billion, falling short of analyst expectations. Nonetheless, comparable store sales rose 3%, building on a strong 7% increase from the previous year. Additionally, ROST posted an EPS of $1.79, surpassing consensus estimates by 8.5%, driven by solid demand for its products.

The overall sentiment among analysts regarding ROST stock is highly optimistic, reflected in its “Strong Buy” rating. Out of 21 analysts covering the stock, 16 recommend a “Strong Buy,” while five suggest a “Hold.” The mean price target stands at $160.16, indicating a compelling upside potential of 14.9% from current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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