Core Viewpoint - Ross Stores, Inc. is expected to report year-over-year revenue growth for Q3 fiscal 2025, with projected revenues of $5.41 billion, reflecting a 6.7% increase from the previous year [1]. Revenue and Earnings Estimates - The consensus estimate for earnings per share (EPS) is $1.40, which represents a decline of 5.4% from $1.48 in the same quarter last year [1]. - The company has a trailing four-quarter earnings surprise average of 5.1%, with a 2.6% surprise in the last reported quarter [2]. Factors Influencing Q3 Results - Broad-based strength across merchandise categories and solid customer response are expected to support performance [3]. - The off-price retail model is anticipated to attract value-focused shoppers, while a micro-merchandising strategy enhances inventory allocation [4]. - The company expects comparable sales growth of 2-3% for Q3, with a projected 2.9% growth [5]. Economic and Geopolitical Considerations - Ross Stores is cautious about ongoing macroeconomic and geopolitical uncertainties, which may impact consumer spending and profitability [6][7]. - The company anticipates a decline in EPS to $1.31-$1.37, with tariff impacts contributing approximately seven to eight cents to this decline [7]. Earnings Prediction Model - The Zacks model indicates a potential earnings beat for Ross Stores, supported by a positive Earnings ESP of +3.41% and a Zacks Rank of 3 [8]. Stock Performance and Valuation - Ross Stores is trading at a forward price-to-earnings ratio of 24.10X, lower than the industry average of 29.88X [9]. - The stock has gained 10.1% over the past three months, contrasting with a 1.6% decline in the industry [9].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Ross Stores despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Ross Stores is expected to report quarterly earnings of $1.40 per share, reflecting a year-over-year decrease of 5.4% [3]. - Revenue projections stand at $5.41 billion, indicating a 6.7% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.11% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for Ross Stores is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.41% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Ross Stores currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Ross Stores exceeded the expected earnings of $1.52 per share, achieving actual earnings of $1.56, resulting in a surprise of +2.63% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Industry Comparison - Target, a competitor in the discount retail sector, is expected to report earnings of $1.76 per share, reflecting a year-over-year decline of 4.9% [18]. - Target's revenue is projected at $25.36 billion, down 1.2% from the previous year, with a negative Earnings ESP of -3.07% and a Zacks Rank of 4 [19].

Core Viewpoint - Ross Stores has underperformed compared to the S&P 500, raising questions about investment timing and strategy for potential investors [1] Group 1: Company Performance - Ross Stores has posted a return of 12% since May 2025, significantly lower than the S&P 500's 19.5% increase [1] - The company operates 2,233 locations and has achieved an average store growth of 4.1% annually over the last two years, outpacing the broader consumer retail sector [2] - Same-store sales have grown by an average of 3.1% per year, indicating healthy demand for the retailer [4] Group 2: Growth Potential - The opening of new stores suggests that Ross Stores is investing for growth, driven by demand exceeding supply in certain areas [3] - Despite a solid same-store sales performance, the company's long-term revenue growth has been disappointing, with an annualized growth rate of 5.7% over the last six years, which is below the consumer retail sector average [5] Group 3: Investment Considerations - Ross Stores' shares are currently trading at a forward P/E of 24.3, prompting discussions on whether it is a good time to invest [6]

Core Viewpoint - Ross Stores, Inc. is a prominent off-price retailer in the U.S., facing both growth opportunities and margin pressures in a competitive market [1][3]. Company Overview - Ross Stores operates two main chains: Ross Dress for Less and dd's DISCOUNTS, focusing on discounted brand-name products [1]. - The company has expanded to over 2,000 locations and has a market capitalization of $52.76 billion [2]. Financial Performance - In Q2 of fiscal 2025, Ross Stores reported a 4.6% year-over-year increase in sales to $5.53 billion, aligning with analyst expectations [5]. - Comparable store sales rose by 2% year-over-year, although EPS declined by 1.9% to $1.56, still surpassing the consensus estimate of $1.52 [5]. Market Position - Over the past 52 weeks, Ross Stores' stock has increased by 14%, but it has underperformed compared to the S&P 500 Index, which gained 17.5% [3][4]. - The stock reached a 52-week high of $165.07 on November 5 but has since decreased by 1.7% [3]. Future Guidance - The company anticipates a decline in EPS for Q3, projecting a range of $1.31 - $1.37 compared to $1.48 in the same quarter last year [6]. - For Q4, EPS is expected to be between $1.74 - $1.81, slightly lower than the previous year's $1.79 [6].

Core Insights - The article compares Dollar General (DG) and Ross Stores (ROST) to determine which stock is more undervalued for investors interested in retail discount stores [1] Group 1: Zacks Rank and Earnings Estimates - Dollar General has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Ross Stores, which has a Zacks Rank of 3 (Hold) [3] - The improving analyst outlook for Dollar General suggests a stronger potential for earnings growth [3] Group 2: Valuation Metrics - Dollar General has a forward P/E ratio of 16.26, significantly lower than Ross Stores' forward P/E of 26.20, indicating that DG may be undervalued [5] - The PEG ratio for Dollar General is 2.10, while Ross Stores has a PEG ratio of 3.12, further suggesting that DG is a better value option [5] - Dollar General's P/B ratio is 2.74, compared to Ross Stores' P/B of 9.2, reinforcing the notion that DG is more attractively priced [6] Group 3: Value Grades - Based on various fundamental metrics, Dollar General has earned a Value grade of A, while Ross Stores has a Value grade of C, indicating a stronger value proposition for DG [6]

Core Viewpoint - Bank of America Securities maintains a "Buy" rating on Burlington Stores, TJX Companies, and Ross Stores, expecting these retailers to outperform their cautious low single-digit same-store sales growth guidance, potentially achieving mid to high single-digit growth [1] Retail Sector Analysis - The retail sector is facing challenges such as tariffs and variable weather patterns, yet Bank of America Securities believes the overall fundamentals of the sector remain strong [1] - Each company employs different strategies to sustain growth amidst these challenges [1]

Core Insights - Ross Stores, Inc. is preparing to announce its third-quarter results, with an expected profit of $1.38 per share, reflecting a 6.8% decrease from the previous year's $1.48 per share [2] - For the full fiscal year 2025, analysts project an EPS of $6.19, down 2.1% from $6.32 in 2024, but anticipate a rebound in fiscal 2026 with a 10% year-over-year increase to $6.81 per share [3] - The stock has gained 8.6% over the past 52 weeks, underperforming compared to the S&P 500 Index's 16.9% and the Consumer Discretionary Select Sector SPDR Fund's 18.7% returns [4] Financial Performance - In Q2, Ross Stores reported a 4.6% year-over-year increase in topline revenue to $5.5 billion, aligning closely with market expectations, while EPS dropped 1.9% year-over-year to $1.56, exceeding consensus estimates by 2.6% [5] - The company’s performance may face challenges in upcoming quarters due to high tariffs imposed on textiles and garments from Asian countries [6] Analyst Sentiment - Analysts maintain a "Moderate Buy" consensus rating for Ross Stores, with 14 "Strong Buys" and six "Holds" among 20 analysts, and a mean price target of $163.75 indicating a potential upside of 4.5% from current levels [7]

Core Insights - Ross Stores, Inc. (ROST) is enhancing shopper experience and driving growth through strategic initiatives, including store openings and expansions, resulting in increased comparable store sales [1][3] Store Expansion - The company completed its fiscal 2025 store-expansion plans by opening 40 new stores, including 36 Ross Dress for Less and 4 dd's DISCOUNTS outlets across 17 states [2] - In the current fiscal year, Ross Stores has added a total of 90 new stores, bringing the total to 2,273 locations across 44 states, the District of Columbia, Guam, and Puerto Rico [2] Growth Projections - Ross Stores aims to achieve at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS stores in the long term, indicating a strong commitment to growth through store expansion [3] - In the second quarter of fiscal 2025, the company's revenue increased by 5% year over year, supported by a 2% gain in comparable store sales, with expectations of 2-3% comps growth in the third and fourth quarters [3] Marketing and Customer Engagement - The company's marketing strategy emphasizes its off-price model and consistent value through various channels, including digital platforms and traditional advertising, to strengthen its position as a leading off-price retailer [4] - Ross Stores is focused on attracting and retaining a diverse customer base that seeks high-quality merchandise at affordable prices [4] Long-term Outlook - Ross Stores is well-positioned for long-term growth, supported by steady store openings, effective execution, and financial resilience [5]

Core Insights - Ross Stores Inc. is expanding its footprint while many retailers are contracting, having opened 36 Ross Dress for Less locations and 4 dd's Discounts stores across 17 states in September and October, completing its growth plans for fiscal 2025 [1] - The company plans to open 90 new locations by the end of the year, reinforcing its brand presence in existing and new markets [2] - Ross is adding stores in the Midwest and Northeast, including Michigan, New Jersey, and New York, while also expanding in sunbelt states [3] Expansion Strategy - The company is focusing on expanding dd's in core markets like California and Texas, with a long-term goal of reaching at least 2,900 Ross Dress for Less and 700 dd's Discounts locations [5] - Ross Stores is seen as an outlier in the retail sector, which is experiencing significant store closures, as it continues to grow its presence [5] Market Context - The retail industry is facing a 274% spike in layoffs in 2025, with major retailers like Macy's and Kohl's closing underperforming stores to boost profitability [3][7] - Off-price retail has been a growth segment, with Ross competing effectively against other discount retailers like T.J. Maxx and Burlington, attracting a mix of lower-income shoppers and those trading down from mid-tier retailers [8][10] - Coresight Research indicates that six of the ten retail chains opening the most stores in 2025 are discount formats, with Ross, TJX, and Burlington expected to open a combined total of 289 stores this year [11] Business Model - Ross Stores operates on a business model that allows them to purchase excess inventory at low costs and sell it at significant discounts, enabling them to open new locations with minimal outside capital [12][13] - Currently, there are 2,273 Ross Dress for Less and dd's Discounts stores operating across 44 states, the District of Columbia, Guam, and Puerto Rico [13]

Core Insights - Ross Stores, Inc. (ROST) is enhancing its market presence through new store openings and operational improvements, having recently completed its fiscal 2025 expansion plan by opening 40 new stores [1][9] - The company has added a total of 90 new stores in the current fiscal year, operating 2,273 Ross Dress for Less and 364 dd's DISCOUNTS locations across various states [2][9] - ROST is experiencing positive customer responses across its merchandise categories, contributing to sales growth and profitability [3][4] Expansion and Growth - The recent store openings include 36 Ross Dress for Less and four dd's DISCOUNTS outlets in 17 states, with a focus on expanding in the Midwest, Northeast, California, and Texas [2][3] - ROST anticipates comparable store sales (comps) growth of 2-3% for the third and fourth quarters of fiscal 2025, supported by broad-based merchandise strength [4][9] - The company has raised its long-term store-expansion targets, aiming for at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS stores [5] Financial Performance - In the second quarter of fiscal 2025, ROST's top line improved by 5% year over year, with a 2% gain in comps [4] - Projections indicate comparable sales growth of 2.9% in the third quarter and 2.0% in the fourth quarter of fiscal 2025 [4] Market Position - ROST shares have increased by 21.3% over the past three months, contrasting with a 0.3% decline in the industry [6]