Key Takeaways Retailers like ROST, DG, COST and BURL benefit from cautious spending and steady discount store traffic.Lean operations, private labels, and AI adoption are boosting margins and responsiveness in discount retail.Easing monetary policy and improved sentiment may further lift demand for value-focused retail in 2026.The U.S. economy is currently in a transition phase, characterized by easing financial conditions and steadily improving consumer sentiment. The recent rate cut by the Federal Reserve ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ross Stores (ROST) .Ross Stores currently has an average brokerage recomme ...

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Sales Performance - Sales for the three-month period ended November 1, 2025, increased by $0.5 billion, or 10%, compared to the same period in 2024, driven by a 7% increase in comparable store sales and a $0.2 billion increase in non-comparable store sales [73]. - Comparable store sales growth for the nine-month period ended November 1, 2025, was 3%, reflecting a 2% increase in basket size and a 1% increase in traffic [74]. - The company opened 40 new stores in the third quarter of fiscal 2025, completing a total of 90 new store openings for the fiscal year [68]. Financial Performance - Operating income as a percentage of sales decreased by 35 basis points for the three-month period and 45 basis points for the nine-month period ended November 1, 2025, primarily due to increased cost of goods sold [81]. - Diluted earnings per share for the three-month period ended November 1, 2025, increased by $0.10, or 7%, to $1.58, attributed to a 5% increase in net earnings and a 2% reduction in weighted-average diluted shares outstanding [87]. - The effective tax rate for the three-month period ended November 1, 2025, was approximately 25%, up from 24% in the same period in 2024, primarily due to tax effects associated with stock-based compensation [85]. Cost Management - Cost of goods sold as a percentage of sales for the three-month period ended November 1, 2025, increased by approximately 35 basis points, mainly due to higher distribution costs and tariff-related processing costs [77]. - Selling, general and administrative expenses increased by $0.1 billion for the three-month period ended November 1, 2025, primarily due to higher store-related costs [79]. Cash Flow and Investments - Net cash provided by operating activities was $1.9 billion for the nine months ended November 1, 2025, compared to $1.5 billion for the same period in the prior year, reflecting a $0.4 billion increase [92][93]. - Cash used in investing activities increased to $0.6 billion for the nine months ended November 1, 2025, from $0.5 billion in the prior year, primarily due to higher capital expenditures related to a new distribution center [96][97]. - Net cash used in financing activities was $2.0 billion for the nine months ended November 1, 2025, up from $1.5 billion in the prior year, mainly due to increased Senior Note repayments [99][100]. Debt and Shareholder Returns - As of November 1, 2025, the company had approximately $1.5 billion of outstanding unsecured Senior Notes, with $499 million classified in current liabilities [102]. - The company repurchased 5.6 million shares of common stock for $787.5 million under its stock repurchase program during the nine months ended November 1, 2025 [103]. - The company declared a quarterly cash dividend of $0.4050 per common share on November 19, 2025, with total cash dividends paid of $397.2 million for the nine months ended November 1, 2025 [104]. Inventory and Capital Expenditures - Packaway inventory represented 36% of total inventory as of November 1, 2025, compared to 38% a year earlier, indicating a strategic management of inventory levels [95]. - Capital expenditures for fiscal 2025 are projected to be approximately $800 million, focusing on new stores and supply chain investments [98]. Liquidity - The company ended the third quarter of fiscal 2025 with $4.1 billion of unrestricted cash balances, indicating strong liquidity [106]. - The company expects existing cash, cash equivalents, and credit facilities to meet operational needs for at least the next 12 months [106].

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. In the third quarter, the three major off-price chains in the U.S. reported a feat accomplished by few other retailers this year: the vanquishing of new tariffs imposed by the Trump administration. Through judicious inventory management and hyper-vigilant pricing, TJX Cos., Ross and Burlington in recent weeks successfully protected margins in Q3, and all three expect ...

Market Analysis by covering: Ross Stores Inc. Read 's Market Analysis on Investing.com ...

Ross Stores, Inc. (ROST), headquartered in Dublin, California, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names. Valued at $57.8 billion by market cap, ROST offers designer apparel, accessories, footwear, and home fashions at discount prices. Companies worth $10 billion or more are generally described as “large-cap stocks,” and ROST perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influenc ...

Jefferies upgraded Ross Stores, Inc. (NASDAQ:ROST) to a "Buy" rating and increased the price target from $190 to $205.The Zacks Rank #2 (Buy) rating for Ross Stores indicates a positive outlook on the company's earnings prospects.With a current price of $177.50 and a market capitalization of approximately $57.73 billion, Ross Stores shows strong investor interest and potential for growth.Ross Stores, Inc. (NASDAQ:ROST) is a prominent player in the off-price retail sector, offering a wide range of apparel, f ...

Ross Stores (ROST) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a chang ...