Ross Stores, Inc. (ROST) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Ross Stores (ROST) has shown strong stock performance, with an 8.3% increase over the past month and a 15.1% gain since the start of the year, outperforming both the Zacks Retail-Wholesale sector and the Zacks Retail - Discount Stores industry [1] Financial Performance - The company has consistently beaten earnings estimates, reporting an EPS of $1.58 against a consensus estimate of $1.4 in its last earnings report [2] - For the current fiscal year, Ross Stores is projected to achieve earnings of $6.36 per share on revenues of $22.27 billion, reflecting a 0.63% change in EPS and a 5.39% change in revenues [3] - For the next fiscal year, expected earnings are $6.99 per share on revenues of $23.44 billion, indicating a year-over-year change of 9.93% in EPS and 5.28% in revenues [3] Valuation Metrics - The stock currently trades at 27.4X current fiscal year EPS estimates, aligning with the peer industry average, while on a trailing cash flow basis, it trades at 22.6X compared to the peer group's average of 17.9X [7] - The PEG ratio stands at 3.89, which does not position the company among the top stocks from a value perspective [7] Style Scores and Zacks Rank - Ross Stores has a Value Score of D, while its Growth and Momentum Scores are B and A, respectively, resulting in a combined VGM Score of B [6] - The company holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend [8] - Given the Zacks Rank and Style Scores, Ross Stores appears to meet the criteria for potential investment opportunities in the near future [9]