Erste Group Bank Raises Earnings Estimates for Ross Stores

Ross Stores, Inc. (NASDAQ:ROST) – Research analysts at Erste Group Bank upped their FY2027 EPS estimates for Ross Stores in a research note issued to investors on Tuesday, March 24th. Erste Group Bank analyst H. Engel now anticipates that the apparel retailer will post earnings of $7.36 per share for the year, up from their prior forecast of $6.52. The consensus estimate for Ross Stores’ current full-year earnings is $6.17 per share. Erste Group Bank also issued estimates for Ross Stores’ FY2028 earnings at $8.14 EPS.

Ross Stores (NASDAQ:ROST) last announced its earnings results on Tuesday, March 3rd. The apparel retailer reported $2.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.90 by $0.10. The firm had revenue of $6.64 billion during the quarter, compared to analyst estimates of $6.42 billion. Ross Stores had a net margin of 9.43% and a return on equity of 36.70%. Ross Stores’s revenue was up 12.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.65 EPS.

A number of other research analysts have also commented on the stock. The Goldman Sachs Group raised their price objective on shares of Ross Stores from $214.00 to $244.00 and gave the company a “buy” rating in a research note on Wednesday, March 4th. Guggenheim increased their price target on Ross Stores from $199.00 to $226.00 and gave the company a “buy” rating in a research note on Wednesday, March 4th. Telsey Advisory Group reiterated an “outperform” rating and set a $240.00 price target on shares of Ross Stores in a research report on Thursday. Sanford C. Bernstein set a $200.00 price objective on Ross Stores in a research note on Wednesday, March 4th. Finally, Barclays upped their price objective on Ross Stores from $205.00 to $221.00 and gave the company an “overweight” rating in a report on Monday, March 2nd. Sixteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $208.29.

Ross Stores Trading Down 1.2%

Shares of NASDAQ:ROST opened at $211.69 on Friday. The company has a 50 day moving average of $200.54 and a 200-day moving average of $178.51. The firm has a market cap of $68.47 billion, a P/E ratio of 32.03, a P/E/G ratio of 2.92 and a beta of 0.97. Ross Stores has a twelve month low of $124.07 and a twelve month high of $217.51. The company has a current ratio of 1.58, a quick ratio of 1.04 and a debt-to-equity ratio of 0.16.

Ross Stores Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a dividend of $0.445 per share. The ex-dividend date is Friday, March 13th. This is a positive change from Ross Stores’s previous quarterly dividend of $0.41. This represents a $1.78 dividend on an annualized basis and a yield of 0.8%. Ross Stores’s payout ratio is 26.93%.

Insider Activity at Ross Stores

In other Ross Stores news, Director Patricia H. Mueller sold 1,881 shares of the company’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $213.13, for a total value of $400,897.53. Following the transaction, the director owned 2,159 shares of the company’s stock, valued at approximately $460,147.67. This represents a 46.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO Karen Sykes sold 2,556 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $213.91, for a total value of $546,753.96. Following the sale, the chief marketing officer owned 103,945 shares of the company’s stock, valued at $22,234,874.95. This trade represents a 2.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 2.20% of the company’s stock.

Institutional Investors Weigh In On Ross Stores

Several hedge funds have recently modified their holdings of the stock. Virtus Investment Advisers LLC bought a new stake in Ross Stores during the second quarter valued at about $1,265,000. Jump Financial LLC bought a new position in shares of Ross Stores in the second quarter worth about $7,949,000. GSA Capital Partners LLP bought a new position in shares of Ross Stores in the third quarter worth about $1,411,000. Amica Mutual Insurance Co. acquired a new position in shares of Ross Stores during the 3rd quarter worth about $4,790,000. Finally, Thrivent Financial for Lutherans lifted its position in shares of Ross Stores by 84.7% during the 3rd quarter. Thrivent Financial for Lutherans now owns 227,340 shares of the apparel retailer’s stock worth $34,645,000 after purchasing an additional 104,270 shares during the last quarter. 86.86% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Ross Stores

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Q4 strength: Ross posted broad-based category strength with record sales and strong Q4 gains, underscoring healthy demand and margin leverage potential—key support for forward earnings. Ross Stores Shows Broad-Based Category Strength: Can Momentum Hold?
• Positive Sentiment: Analyst upgrades: Erste Group raised FY2027 and FY2028 EPS forecasts sharply (to ~$7.36 and ~$8.14, respectively), well above current consensus — this lifts forward earnings expectations and supports valuation expansion. MarketBeat ROST
• Positive Sentiment: Brokerage backing: Telsey Advisory Group reaffirmed an “outperform” rating and set a $240 price target, signaling continued sell-side confidence and potential upside from current levels. Telsey Reaffirms Outperform
• Positive Sentiment: Longer-term growth view: Analysts and commentary (e.g., Seeking Alpha) argue Ross’ earnings should continue growing at a healthy clip given its off-price positioning and margin profile — a structural bullish argument for investors focused on multi-year returns. Ross Stores: Earnings Should Continue To Grow At A Healthy Clip
• Neutral Sentiment: Analyst sentiment coverage: A Zacks piece highlights Wall Street bulls are optimistic and that analyst ratings can move the stock — useful context but not a specific rating change driving action. Wall Street Bulls Look Optimistic About Ross Stores (ROST): Should You Buy?
• Neutral Sentiment: Macro/market commentary: Broader consumer-spending commentary (e.g., Jim Cramer coverage) is referenced — supportive of retail but not a direct company-specific catalyst. Jim Cramer’s 5 Stock Calls and the Truth About Strong Consumer Spending
• Negative Sentiment: Insider selling: Reports show top Ross executives executed a sizable stock sale on March 26, which can spook investors and prompt short-term selling or profit-taking despite positive fundamentals. Top Ross Stores Executives Quietly Cash In on Major Stock Sale

About Ross Stores

Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.