Company Overview - Ross Stores, Inc. is a leading off-price retailer headquartered in Dublin, California, with fiscal 2024 revenues of $21.1 billion [4] - The company operates Ross Dress for Less, the largest off-price apparel and home fashion chain in the U.S., with 1,909 locations across 44 states, the District of Columbia, Guam, and Puerto Rico [4] - Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions at savings of 20% to 60% off regular prices [4] - Additionally, Ross operates 364 dd's DISCOUNTS stores in 22 states, featuring moderately-priced assortments with savings of 20% to 70% off regular prices [4] Leadership and Legacy - Norman Ferber, former Chairman and CEO of Ross Stores, passed away on January 23, 2026, at the age of 77 after a brief illness [1] - Ferber was instrumental in shaping the company's strategy and culture, contributing to its growth from a small chain to a leading retailer [2] - He held various leadership roles over decades, including President, COO, CEO, and Chairman of the Board, and remained engaged with the company for nearly 30 years after his tenure as CEO [2] Community Engagement - In honor of Ferber's commitment to Ross Associates, the company contributed to the Ross Cares Fund to support community members in need [3] - Ferber was passionate about the partnership with Boys & Girls Clubs of America, dedicating time as a volunteer and donor [3] - The Ross Stores Foundation made a donation in Ferber's memory, and a main Art and Academic Room at the Moldaw-Zaffaroni Clubhouse was named in his honor [3]

Ross Stores (ROST) closed the most recent trading day at $192.32, moving +1.39% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.16% for the day. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%. The discount retailer's stock has climbed by 5.03% in the past month, exceeding the Retail-Wholesale sector's gain of 3.08% and the S&P 500's loss of 0.42%.The investment community will be closely monitoring the performance of Ross Store ...

Core Insights - Fenimore Asset Management's Q4 2025 investor letter highlights a volatile stock market influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy decreased by -1.17% against the Russell Midcap Index's 0.16% return, with underperformance attributed to investments in the financial and industrial sectors [1] Company Spotlight: Ross Stores, Inc. - Ross Stores, Inc. (NASDAQ:ROST) was the top performer in both Fenimore Value Strategy and Fenimore Dividend Focus Strategy [2] - As of January 15, 2026, Ross Stores, Inc. stock closed at $193.79 per share, with a one-month return of 6.24% and a 52-week gain of 29.93% [2] - The company has a market capitalization of $63.026 billion [2] - Strong same-store sales in its fiscal third quarter and effective leadership from the new CEO are noted as key factors in Ross Stores' performance [3] - The off-price retail model of Ross Stores is seen as advantageous in the current economic climate, fulfilling a critical need for consumers [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Ross Stores (ROST) - Ross Stores currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - Over the past week, ROST shares increased by 4.76%, outperforming the Zacks Retail - Discount Stores industry, which rose by 4.33% [6] - In the last quarter, ROST shares have risen by 22.11%, and over the past year, they have gained 27.19%, compared to the S&P 500's increases of 6.77% and 21.08%, respectively [7] Trading Volume - ROST's average 20-day trading volume is 2,042,110 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, 6 earnings estimates for ROST have been revised upwards, with no downward revisions, raising the consensus estimate from $6.20 to $6.47 [10] - For the next fiscal year, 6 estimates have also moved higher, indicating positive sentiment regarding future earnings [10] Conclusion - Given the strong performance metrics and positive earnings outlook, ROST is positioned as a promising investment opportunity with a Momentum Score of A [12]

Core Viewpoint - JPMorgan analyst Matthew Boss has raised the price target for Ross Stores (ROST) to $215 from $200, maintaining an Overweight rating on the shares and adding Ross to its Analyst Focus List [1] Group 1: Price Target and Rating - The price target for Ross Stores has been increased to $215 from $200 [1] - The Overweight rating on Ross Stores shares has been retained [1] - Ross Stores has been added to JPMorgan's Analyst Focus List [1] Group 2: Sales Growth Estimates - Recent fieldwork indicates potential upside for Ross Stores' Q4 same-store sales [1] - JPMorgan has raised its Q4 same-store sales growth estimate to 5.5%, surpassing the company's management outlook of 3%-4% [1]

Group 1 - Deutsche Bank has resumed coverage of key stocks in the global brand, discount retail, and professional beauty sectors, expressing optimism as it enters 2026, anticipating a "risk-on" macro environment despite potential fluctuations [1] - Analyst Christina Katay noted that the revenue trend in the first half of the year will remain robust due to favorable weather conditions and increased tax refunds, which are seen as drivers for same-store sales growth [1] - The bank estimates that the "Great Beauty Act" will increase tax refunds by approximately $55 billion, with total tax refunds in 2024 projected at $461 billion [1] Group 2 - The expected tax refunds will primarily benefit low- to middle-income consumers facing cost-of-living challenges, while affluent households are anticipated to benefit from increased state and local tax (SALT) deductions [2] - Deutsche Bank has assigned a "Buy" rating to stocks including Amphenol (AS.US), Birkenstock (BIRK.US), Ulta Beauty (ULTA.US), Ralph Lauren (RL.US), Ross Stores (ROST.US), and TJX Companies (TJX.US) [2] - The bank holds a more conservative view on stocks such as Bath & Body Works (BBWI.US), Burlington Stores (BURL.US), Nike (NKE.US), and Lululemon (LULU.US), assigning them a "Hold" rating [2]

Core Insights - Ross Stores, Inc. (ROST) reported a strong third-quarter fiscal 2025 performance with a 7% increase in comparable store sales and a 10% rise in total revenues to approximately $5.6 billion, significantly exceeding consensus estimates [1][9] - The company achieved earnings per share (EPS) of $1.58, up from $1.48 a year ago, indicating the resilience of its operating model [1] Sales Performance - The growth in comparable store sales was broad-based, with cosmetics, shoes, and ladies' apparel leading the performance, reflecting effective merchandising and the appeal of Ross Stores' value proposition in an inflation-aware environment [2] - The ladies' segment, previously a laggard, showed accelerated growth above the chain average during the fiscal third quarter [2] Expansion and Future Guidance - Ross Stores continued its expansion by opening 90 net new stores, including Ross and dd's DISCOUNTS, to capture existing and new market demand [3] - The company raised its guidance for fiscal fourth-quarter comparable store sales to 3-4% and indicated positive trends in inventory builds ahead of the holiday season [3] Strategic Outlook - As Ross Stores enters the critical holiday season, the company is positioned with strong traffic, healthy inventory levels, and a refined branded strategy, which may help sustain momentum despite potential macroeconomic challenges [4] - The off-price retail model historically performs well in value-seeking environments, suggesting that Ross Stores may continue to outperform its peers [4] Stock Performance - Ross Stores' shares have gained 23.4% over the past three months, outperforming the industry average increase of 4.9% [5] - The stock currently trades at a forward 12-month P/E ratio of 26.61X, which is lower than the industry average of 29.92X, indicating a modest discount relative to peers and the broader consumer staples sector [10]

Core Insights - Ross Stores (ROST) is outperforming its peers in the Retail-Wholesale sector with a year-to-date return of approximately 19.8%, compared to the sector average gain of 7.4% [4] - The Zacks Rank for Ross Stores is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings sentiment [3] Company Performance - Over the past three months, the Zacks Consensus Estimate for Ross Stores' full-year earnings has increased by 4.3%, reflecting positive analyst sentiment [4] - Ross Stores belongs to the Retail - Discount Stores industry, which has an average year-to-date gain of 6.4%, further highlighting ROST's strong performance [6] Sector Comparison - The Retail-Wholesale sector, which includes 196 individual stocks, is currently ranked 9 in the Zacks Sector Rank [2] - Another stock in the Retail-Wholesale sector, Bed Bath & Beyond (BBBY), has also shown strong performance with a year-to-date return of 14.6% and a Zacks Rank of 2 (Buy) [5]

Group 1 - The core viewpoint indicates a change in the setup for Ross Stores (ROST), with improved traffic and core demand, suggesting a potential positive shift in performance compared to peers [1] - Previously, Ross Stores was facing margin weakness and underperforming relative to competitors, but the current analysis suggests a more favorable outlook [1] Group 2 - The author emphasizes a diverse investment background, utilizing various strategies such as fundamental, technical, and momentum investing to enhance the investment process [1]

Core Insights - The holiday shopping season of 2025 highlighted the resilience of consumer demand despite economic concerns, with shoppers prioritizing value and convenience [1][4] - Retailers adapted to changing consumer behaviors by enhancing delivery logistics and utilizing digital and physical channels, leading to innovative shopping experiences [2] - Targeted promotions and loyalty programs were employed to stimulate demand while maintaining profitability, with subscription perks and buy-now-pay-later options appealing to value-conscious consumers [3] Retail Sales Performance - U.S. holiday sales for November and December are projected to exceed $1 trillion for the first time, with year-over-year growth estimated at 3.7%-4.2%, translating to total sales of $1.01-$1.02 trillion [4] - Online spending during Cyber Week increased by 7.7% year-over-year, reaching $44.2 billion, indicating strong digital engagement [4][8] Retailer Strategies and Stock Recommendations - Retailers like Amazon, Ross Stores, Walmart, and Costco are highlighted as strong contenders for growth in 2026, leveraging innovative strategies and consumer engagement [5][8] - Amazon's dominance in e-commerce is supported by its Prime ecosystem and technological innovations, with sales growth estimates of 11.9% for the current year and 11.3% for the next [6][7] - Ross Stores is benefiting from its off-price model and effective merchandising, with sales growth estimates of 6% for the current year and 5.4% for the next [11][12] - Walmart's omnichannel approach and focus on low prices position it well for value shoppers, with sales growth estimates of 4.5% for both the current and next year [15][16] - Costco's membership model drives strong traffic and loyalty, with sales growth estimates of 7.5% for the current year and 7.3% for the next [19][20]