When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?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 recommendation (ABR) of 1.40 ...

Market Overview - The U.S. stock market showed mixed results with the Dow Jones up by 0.46%, while the Nasdaq fell by 0.31% and the S&P 500 increased by 0.09% [1] - Major tech stocks experienced varied performance, with Nvidia rising by 0.7% and Amazon and Apple both declining by over 1% [3] Semiconductor Sector - Storage concept stocks continued to perform well, with Seagate Technology rising by 11%, Western Digital by over 8%, SanDisk by over 8%, and Micron Technology by over 3% [3] - Micron Technology announced that its new NAND flash wafer plant is on track to begin shipments in the second half of 2028, with HBM4 customer shipments expected to increase in the first quarter of 2028, one quarter ahead of schedule. The CFO indicated that market demand exceeds supply, and this tight supply situation is expected to persist until after 2026 [3] Retail Sector - Major U.S. retailers saw collective gains, with Walmart rising over 2% to reach a historical high, Macy's up nearly 4%, Kohl's up nearly 3%, and Ross Stores up over 2% [4] - McDonald's reported a 9.5% year-over-year revenue increase to $7 billion for the fourth quarter, with adjusted earnings per share of $3.12, exceeding expectations [4] Software Sector - Software stocks faced significant sell-offs, with Cisco's stock plummeting over 9%, marking its largest drop in 2023. Despite an increase in AI demand leading to an upward revision of annual guidance, the gross margin guidance for the current quarter fell short of expectations [4] - Other software stocks showed mixed results post-earnings, with Fastly surging over 60%, HubSpot up over 10%, and Applovin dropping over 14% [4][5] Chinese Stocks - Chinese stocks listed in the U.S. experienced a collective decline, with the Nasdaq Golden Dragon China Index falling by 1.4%. Tencent Music dropped nearly 6%, while other companies like Huya, Boss Zhipin, and Beike fell over 4% [6] Commodity Market - Precious metals saw a decline, with spot gold down by 0.37% at $5065 per ounce and spot silver down by 1.43% at $83 per ounce [8] - International oil prices also fell, with Brent crude futures down about 1% to $68.75 per barrel and WTI crude futures down about 1% to $63.99 per barrel [8] Cryptocurrency Market - The majority of cryptocurrencies saw an increase, with Bitcoin rising by 0.96%, remaining below $68,000. In the last 24 hours, 118,000 individuals experienced liquidations [10][11]

Core Insights - December retail sales in the U.S. were flat month-over-month, a significant slowdown from November's 0.6% increase, indicating a cautious consumer environment amid rising prices and policy uncertainty [1][2] Retail Sales Overview - Retail sales showed no growth in December, with declines in eight of the thirteen categories tracked by the Census Bureau, suggesting households are becoming more cautious in their spending [1][2][7] - Categories that saw gains included building materials and garden equipment (1.2%), food and beverage stores (0.2%), and sporting goods (0.4) [3] - Conversely, declines were noted in motor vehicle and parts dealers (-0.2%), clothing stores (-0.7%), and general merchandise stores (-0.1%) [4] Retail Sector Opportunities - Despite subdued sales, certain retailers are well-positioned to thrive in a cautious consumer environment, including Dollar General, Walmart, Ross Stores, and TJX Companies, due to their scale, pricing flexibility, and loyal customer bases [5][7] Company-Specific Insights Dollar General - Dollar General is enhancing its market position through remodel strategies and digital expansion, targeting both consumable and non-consumable categories [8] - The Zacks Consensus Estimate indicates a 4.8% growth in sales and 9.6% in EPS for the current financial year, with a 4.1% rise in sales and 9.2% in earnings projected for the next fiscal year [9] Walmart - Walmart is leveraging its scale and diversified business model to drive market share gains, focusing on high-growth initiatives in advertising and membership services [10] - The Zacks Consensus Estimate suggests a 4.6% growth in sales and 5.2% in EPS for the current financial year, with similar growth expected in the next fiscal year [11] Ross Stores - Ross Stores is capitalizing on its off-price model, with strong customer engagement and effective merchandising driving traffic and sales [14] - The Zacks Consensus Estimate indicates a 6.4% growth in sales and 2.4% in EPS for the current financial year, with a 5.4% rise in sales and 10% growth in earnings projected for the next fiscal year [15] TJX Companies - TJX's off-price business model and "treasure hunt" shopping experience are driving consistent foot traffic and market share gains [16] - The Zacks Consensus Estimate shows a 6.5% growth in sales and 9.6% in EPS for the current financial year, with a 5.5% rise in sales and 9.7% growth in earnings expected for the next fiscal year [17]

Core Viewpoint - Dillard's (DDS) is currently outperforming its peers in the Retail-Wholesale sector, with a year-to-date return of 5.8% compared to the sector average of 5.6% [4]. Group Performance - Dillard's is part of the Retail-Wholesale group, which consists of 193 companies and ranks 6 in the Zacks Sector Rank [2]. - The Zacks Rank system indicates that Dillard's holds a Zacks Rank of 2 (Buy), reflecting a positive earnings outlook with a 9.8% increase in the consensus estimate for full-year earnings over the past three months [3]. Industry Comparison - Dillard's belongs to the Retail - Regional Department Stores industry, which includes 3 stocks and currently ranks 4 in the Zacks Industry Rank. This industry has seen an average gain of 0.4% year-to-date, indicating Dillard's superior performance [5]. - In contrast, Ross Stores, another outperforming stock in the Retail-Wholesale sector, belongs to the Retail - Discount Stores industry, which has a lower ranking (58) but has increased by 8.7% year-to-date [6].

Core Insights - Ross Stores, Inc. (ROST) operates off-price retail apparel and home fashion stores, valued at $61.8 billion by market cap, offering designer products at discount prices [1] Performance Overview - ROST shares have outperformed the broader market, gaining 30% over the past year compared to the S&P 500 Index's 15.4% increase [2] - Year-to-date, ROST stock is up 6.1%, surpassing the S&P 500's 1.1% gains [2] - ROST has also outperformed the SPDR S&P Retail ETF (XRT), which gained about 11.8% over the past year, with ROST's year-to-date returns exceeding the ETF's 3.3% gains [3] Financial Results - On November 20, 2025, ROST reported Q3 results with an EPS of $1.58, exceeding Wall Street expectations of $1.40, and revenue of $5.6 billion, surpassing forecasts of $5.4 billion [5] - ROST expects full-year EPS to be between $6.38 and $6.46 [5] Analyst Expectations - For the current fiscal year ending in January, analysts expect ROST's EPS to grow 2.4% to $6.47 on a diluted basis, with a strong earnings surprise history [6] - Among 19 analysts covering ROST, the consensus rating is a "Strong Buy," with 15 "Strong Buy" ratings and four "Holds" [6] Price Targets - Corey Tarlowe from Jefferies Financial Group reiterated a "Buy" rating on ROST with a price target of $210, suggesting a potential upside of 9.9% [8] - The mean price target is $196.93, representing a 3% premium to current levels, while the highest price target of $221 indicates an upside potential of 15.6% [8]

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]

Core Viewpoint - Ross Stores (ROST) has shown strong stock performance, exceeding both the S&P 500 and the Retail-Wholesale sector in recent trading sessions, indicating positive investor sentiment and market positioning [1][2]. Financial Performance - The upcoming earnings report for Ross Stores is anticipated to show an EPS of $1.87, reflecting a 4.47% increase year-over-year, with revenue expected to reach $6.37 billion, marking a 7.75% growth compared to the same quarter last year [2]. - For the annual period, earnings are projected at $6.47 per share and revenue at $22.48 billion, representing increases of 2.37% and 6.41% respectively from the previous year [3]. Analyst Estimates and Ratings - Recent changes in analyst estimates for Ross Stores indicate a positive outlook, with a 0.31% upward shift in the Zacks Consensus EPS estimate over the past month, leading to a Zacks Rank of 2 (Buy) [5]. - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a historical average annual return of +25% for stocks rated 1 since 1988, suggesting a favorable investment environment for Ross Stores [5]. Valuation Metrics - Ross Stores currently has a Forward P/E ratio of 29.31, which aligns with the industry average, indicating fair valuation relative to peers [6]. - The company has a PEG ratio of 3.62, compared to the industry average of 3.27, suggesting that while growth expectations are factored in, Ross Stores may be slightly overvalued relative to its growth rate [7]. Industry Context - The Retail - Discount Stores industry, part of the broader Retail-Wholesale sector, holds a Zacks Industry Rank of 24, placing it in the top 10% of over 250 industries, which historically outperforms lower-ranked industries [8].

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]