Should investors buy ROST before Q1 2026?
5/9/2025 07:38am
**Investors should exercise caution and consider the potential risks before deciding to buy ROST before Q1 2026.** Here's why:
1. **Earnings Projection and Market Performance**: Ross Stores (ROST) is scheduled to release its Q1 2026 earnings report on May 22, 2025. The stock is currently in a bullish trend, but the forecast for the upcoming quarter suggests a bearish price trend with a sell advice, indicating a potential downside from the current price.
2. **Stock Price Trend Forecast**: The time series price trend forecast indicates a bullish trend over the past 40 days, but with a continuation probability of only 25%. This suggests that while the stock may continue to rise in the short term, there is a significant uncertainty around its future performance.
3. **Support and Resistance Levels**: The stock is currently positioned between the narrow resistance level and the wide resistance level, and between the narrow support level and the wide support level. This indicates that while there is some support for the stock price, it is also facing resistance, which could make it challenging to achieve significant price appreciation.
4. **Price Forecast**: The price forecast for the upcoming days shows a general decline, with prices predicted to fall within a 34% confidence interval. For example, the forecast for May 8, 2025, is $143.46, with a 34% confidence interval ranging from $139.44 to $145.46. This suggests that even if the stock price were to rise in the short term, it could quickly revert to a lower range.
5. **Market Sentiment and Analysts' Outlook**: Despite the recent gains, analysts have a mixed outlook on Ross Stores. The Zacks Rank for Ross Stores is a #4 (Sell), indicating that analysts see more downside than upside potential in the stock. Additionally, the company's upcoming earnings report is expected to show a decline in EPS, which could further dampen investor sentiment.
6. **Short Interest**: The short percent of float for Ross Stores has risen significantly, indicating that more investors are betting against the stock. This can be a bearish signal, as an increase in short interest often precedes a decline in stock price.
In conclusion, while Ross Stores has been performing well recently, the forecast for the upcoming quarter and the potential earnings decline could lead to a reversal in the stock's fortunes. Investors should carefully consider these factors and their own risk tolerance before deciding whether to buy ROST before Q1 2026.