Ross Stores (ROST): Buy, Sell, or Hold Post Q2 Earnings?

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]