Erste Group Bank Weighs in on Ross Stores FY2028 Earnings

by · The Markets Daily

Ross Stores, Inc. (NASDAQ:ROST – Free Report) – Analysts at Erste Group Bank lowered their FY2028 EPS estimates for shares of Ross Stores in a research note issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the apparel retailer will post earnings per share of $8.92 for the year, down from their previous estimate of $8.96. The consensus estimate for Ross Stores’ current full-year earnings is $8.15 per share.

Ross Stores (NASDAQ:ROST – Get Free Report) last released its earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.95 by $0.71. The firm had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.16 billion. Ross Stores’s quarterly revenue was up 13.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.56 EPS.

Other research analysts also recently issued research reports about the stock. Wolfe Research assumed coverage on shares of Ross Stores in a research report on Wednesday, October 21st. They set an “outperform” rating and a $279.00 target price on the stock. Jefferies Financial Group raised their price target on shares of Ross Stores from $265.00 to $285.00 and gave the stock a “buy” rating in a report on Friday, August 21st. Wall Street Zen downgraded shares of Ross Stores from a “buy” rating to a “hold” rating in a research note on Saturday. Sanford C. Bernstein upped their price objective on shares of Ross Stores from $230.00 to $240.00 and gave the company a “market perform” rating in a report on Friday, August 21st. Finally, JPMorgan Chase & Co. increased their price objective on shares of Ross Stores from $262.00 to $272.00 and gave the stock an “overweight” rating in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $272.06.

Read Our Latest Stock Report on ROST

Ross Stores Stock Down 1.7%

NASDAQ ROST opened at $230.09 on Monday. Ross Stores has a one year low of $157.39 and a one year high of $257.00. The business has a 50 day simple moving average of $231.40 and a 200 day simple moving average of $221.48.

Ross Stores Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th were issued a $0.4450 dividend. The ex-dividend date was Tuesday, September 8th. This represents a $1.78 annualized dividend and a dividend yield of 0.8%.

Insider Activity

In other Ross Stores news, insider Stephen C. Brinkley sold 6,424 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $229.66, for a total value of $1,475,335.84. Following the completion of the sale, the insider owned 51,665 shares in the company, valued at approximately $11,865,383.90. This trade represents a 11.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO James Conroy sold 49,205 shares of Ross Stores stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $229.48, for a total transaction of $11,291,563.40. Following the transaction, the chief executive officer directly owned 134,349 shares in the company, valued at approximately $30,830,408.52. This represents a 26.81% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Ross Stores

Hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. bought a new stake in Ross Stores during the second quarter worth $5,938,711,000. State Street Corp boosted its position in Ross Stores by 5.3% in the second quarter. State Street Corp now owns 14,643,656 shares of the apparel retailer’s stock worth $3,116,902,000 after purchasing an additional 734,009 shares during the last quarter. Bank of America Corp DE purchased a new position in Ross Stores in the second quarter worth $2,024,203,000. Primecap Management Co. CA bought a new position in Ross Stores in the 2nd quarter valued at $1,937,995,000. Finally, Wellington Management Group LLP grew its stake in Ross Stores by 89.2% in the 2nd quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer’s stock valued at $1,408,148,000 after purchasing an additional 3,118,591 shares during the period. Hedge funds and other institutional investors own 86.86% of the company’s stock.

Key Headlines Impacting Ross Stores

Here are the key news stories impacting Ross Stores this week:

  • Positive Sentiment: UBS upgraded Ross Stores to “Buy” from “Neutral” and raised its price target to $315 from $239, citing underappreciated marketing and merchandising improvements, continued traffic gains, and potential to close its store-productivity gap with TJX Companies. Ross Stores gains after UBS turns bullish
  • Positive Sentiment: Ross’s operating momentum remains strong. Its latest quarterly report showed earnings of $2.66 per share versus the $1.95 consensus, while revenue increased 13.3% year over year to $6.26 billion. UBS expects revenue growth to outpace consensus over the next two years, supported by store expansion, branded merchandise, and off-price demand. Off-Price, High-Yield: Why Ross Stores Is Defying the Retail Slump
  • Positive Sentiment: Wolfe Research initiated coverage with an “Outperform” rating, adding another constructive analyst view. Ross also completed a 51-store expansion, which could improve buying power and broaden its customer reach. Wolfe Research initiates coverage of Ross Stores at outperform
  • Neutral Sentiment: Bank of America lowered its price target to $258 from $265 but retained a “Buy” rating. The revised target still implies meaningful upside, although the reduction may have tempered some of the bullish sentiment. Bank of America stock recommendations
  • Negative Sentiment: Valuation is a key concern. Ross trades near 28 times earnings after a substantial rally, leaving less room for execution mistakes. Reported insider selling and conflicting short-interest data also encourage caution, particularly if consumer demand or merchandise productivity weakens. Ross Stores Near $234, Where Does Fair Value Sit?

About Ross Stores

(Get Free Report)

Ross Stores, Inc is an off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, which offer branded and designer apparel, accessories, footwear, and home merchandise at discounts to regular department and specialty store prices.

Ross Stores also operates dd’s DISCOUNTS, a chain focused on value-oriented apparel, accessories, footwear, and home products. Both retail formats generally purchase merchandise opportunistically from manufacturers, department stores, and other suppliers, allowing the company to offer changing assortments and discounted prices.

Founded in 1950, Ross Stores serves customers across the United States through its store network and e-commerce presence.

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