Core Insights - Ross Stores, Inc. (ROST) operates off-price retail apparel and home fashion stores, valued at $61.8 billion by market cap, offering designer products at discount prices [1] Performance Overview - ROST shares have outperformed the broader market, gaining 30% over the past year compared to the S&P 500 Index's 15.4% increase [2] - Year-to-date, ROST stock is up 6.1%, surpassing the S&P 500's 1.1% gains [2] - ROST has also outperformed the SPDR S&P Retail ETF (XRT), which gained about 11.8% over the past year, with ROST's year-to-date returns exceeding the ETF's 3.3% gains [3] Financial Results - On November 20, 2025, ROST reported Q3 results with an EPS of $1.58, exceeding Wall Street expectations of $1.40, and revenue of $5.6 billion, surpassing forecasts of $5.4 billion [5] - ROST expects full-year EPS to be between $6.38 and $6.46 [5] Analyst Expectations - For the current fiscal year ending in January, analysts expect ROST's EPS to grow 2.4% to $6.47 on a diluted basis, with a strong earnings surprise history [6] - Among 19 analysts covering ROST, the consensus rating is a "Strong Buy," with 15 "Strong Buy" ratings and four "Holds" [6] Price Targets - Corey Tarlowe from Jefferies Financial Group reiterated a "Buy" rating on ROST with a price target of $210, suggesting a potential upside of 9.9% [8] - The mean price target is $196.93, representing a 3% premium to current levels, while the highest price target of $221 indicates an upside potential of 15.6% [8]

Financial Performance - Costco's revenue and earnings have grown at CAGRs of 9.18% and 13.26% over the past 10 years, with the most recent quarter showing a beat on both revenue and earnings [1][6] - For the first quarter ended Nov. 23, 2025, Costco's total revenue was $67.3 billion, an increase of 8.3% year-over-year, and earnings per share rose to $4.50, exceeding expectations of $4.27 [6] - Net cash from operating activities increased to $4.7 billion from $3.3 billion in the prior year, with a cash balance of $16.2 billion and no short-term debt [7] Stock Valuation and Ratings - Costco's market cap is $436.4 billion, with the stock up 5% over the past year and a current dividend yield of 0.53% [2] - Analysts have assigned a consensus rating of "Moderate Buy" for COST stock, with a mean target price of $1,043.32, indicating an upside potential of about 6.1% from current levels [8] Business Model and Market Position - Founded in 1983, Costco operates a membership-only wholesale club model, offering a wide range of products at low prices and is a global leader in membership warehouse retailing [3] - The company has been raising dividends consecutively for 21 years, with a payout ratio of just under 30%, indicating room for growth [2]

Core Viewpoint - TJX Companies Inc. is recognized as a strong investment opportunity by hedge funds, with UBS reiterating a Buy rating due to the company's significant market share gains against department stores [1][2]. Group 1: Market Performance - TJX has been a major share gainer in sales and EBIT dollars against department stores for over a decade, with a particularly strong performance in the third quarter [2]. - Bernstein SocGen Group has also rated TJX as an Outperform with a price target of $155, following positive insights from meetings with senior management [3]. Group 2: Growth Projections - Bernstein anticipates a 13% compound annual growth rate for TJX from 2021 to 2025, highlighting the company's potential to accelerate earnings growth despite challenges such as tariffs and consumer uncertainty [4]. Group 3: Dividend Commitment - TJX has announced a quarterly dividend of $0.425, which will be payable on March 5, 2026, marking 46 consecutive years of dividend payments, with an annual dividend yield of 1.11% [4]. Group 4: Company Overview - TJX Companies, Inc. is the world's leading off-price retailer, offering brand-name apparel and home goods at prices 20% to 60% lower than department stores, operating brands like T.J. Maxx, Marshalls, HomeGoods, and Sierra [5].

Core Insights - The article discusses the 14 best "forever stocks" recommended by hedge funds, highlighting concerns over high valuations as many stocks are trading above historical norms, suggesting a potential rotation in investment strategies as 2026 approaches [1][2]. Investment Strategy - There is a noticeable shift from large-cap growth stocks to large-cap value stocks, indicating a defensive posture among investors in anticipation of market changes in the coming year [3]. - Analysts suggest that diversifying beyond large-cap stocks is prudent, especially given the recent resurgence of US equities led by large-cap tech companies [3]. Market Trends - Significant discounts on value stocks are noted, with current valuations being cheaper than historical averages, presenting a potential buying opportunity for investors [5]. - The article emphasizes the importance of stability and growth in selecting "forever stocks," which are favored by elite hedge funds [7]. Company Highlights - **KLA Corporation (NASDAQ:KLAC)**: - Upgraded to a Buy by Jefferies due to accelerating AI-driven spending, with revenue forecasts raised to $14 billion for 2026 and $15.5 billion for 2027 [10][12]. - Analysts expect the company to benefit from increased capital expenditure in the semiconductor sector [11]. - **The TJX Companies, Inc. (NYSE:TJX)**: - Maintains a Buy rating from UBS, with strong market share gains against department stores and a commitment to shareholder value through consistent dividend payments [15][18]. - Expected to achieve a 13% compound annual growth rate from 2021 to 2025, despite facing challenges such as tariffs and consumer uncertainty [18].

Core Insights - Ross Stores, Inc. (ROST) is a leading off-price retailer with a market cap of $57.8 billion, operating under the Ross Dress for Less and dd's DISCOUNTS brands [1] - ROST has a total of 1,831 Ross stores and 355 dd's DISCOUNTS stores, offering discounts of 20% to 60% on brand-name merchandise, which attracts value-conscious shoppers [2] Financial Performance - ROST reported Q3 results with an EPS of $1.58, exceeding Wall Street expectations of $1.40, and revenue of $5.6 billion, surpassing forecasts of $5.4 billion [5] - The company expects full-year EPS to be between $6.38 and $6.46 [5] Stock Performance - Over the past three months, ROST stock gained 17.4%, outperforming the Nasdaq Composite's 10% gains [3] - On a six-month basis, ROST shares rose 24.7%, outperforming the Nasdaq's 21.7% gains, but the stock climbed only 13.6% over the past 52 weeks, underperforming the Nasdaq's 20.7% returns [4] - ROST has been trading above its 50-day and 200-day moving averages since late July and early August, respectively, indicating a bullish trend [4] Competitive Landscape - In the competitive apparel retail space, The TJX Companies, Inc. (TJX) has shown resilience with an 18.9% increase over the past 52 weeks, while ROST's six-month gains were 16.8% [6] - Wall Street analysts have a consensus "Moderate Buy" rating for ROST, with a mean price target of $182.33, suggesting a potential upside of 2.7% from current price levels [6]