Here’s What Lifts Ross Stores (ROST)

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]