Ross Stores (ROST) Stock Drops Despite Market Gains: Important Facts to Note

Company Overview - Ross Stores (ROST) closed at $146.08, reflecting a -1.79% change from the previous session, underperforming the S&P 500's 0.09% gain [1] - Over the past month, shares of Ross Stores increased by 6.93%, outperforming the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 3.38% [1] Financial Performance Forecast - The upcoming financial results are expected to show an EPS of $1.49, representing a 12.88% increase from the same quarter last year [1] - Revenue is forecasted to be $5.24 billion, indicating a 6.1% growth compared to the corresponding quarter of the prior year [1] - For the entire fiscal year, earnings are predicted to be $5.97 per share and revenue at $21.2 billion, reflecting changes of +7.37% and +4.05% respectively from the previous year [2] Analyst Estimates and Valuation - Recent adjustments to analyst estimates suggest a favorable outlook on the company's business health and profitability [2] - The Zacks Rank system currently rates Ross Stores at 3 (Hold), with a consensus EPS projection that has moved 0.3% higher in the past 30 days [3] - Ross Stores has a Forward P/E ratio of 24.92, which is a premium compared to the industry's average Forward P/E of 21.41 [3] - The company has a PEG ratio of 2.61, compared to the average PEG ratio for the Retail - Discount Stores industry, which is 2.54 [3] Industry Context - The Retail - Discount Stores industry ranks 162 in the Zacks Industry Rank, placing it in the bottom 36% of all industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]