Ross Stores (ROST) Set to Beat Earnings Estimates Again

Ross Stores (ROST) has consistently beaten earnings estimates in its last two reports, with a 5.64% average surprise. For the upcoming report, the Zacks Earnings ESP is positive, indicating a potential earnings beat. The stock has a Zacks Rank #3 (Hold) and a history of positive surprises, making it a promising candidate to beat earnings estimates again.

Ross Stores Inc. (ROST), a leading off-price retailer, has consistently delivered strong earnings results, with an average surprise of 5.64% over its last two reports. The company's latest earnings report, released on May 22, 2025, saw it beat analysts' expectations by $0.03 per share, reporting earnings per share (EPS) of $1.47 against a consensus estimate of $1.44 [1].

The positive earnings surprises have been accompanied by robust revenue growth. Ross Stores reported revenue of $4.98 billion for the quarter, surpassing analysts' expectations of $4.94 billion. The company's net margin of 9.79% and return on equity of 38.77% underscore its strong financial performance [1].

The upcoming earnings report, scheduled for July 2025, is expected to continue this trend. The Zacks Earnings ESP (Expected Surprise Percentage) is currently positive, indicating a potential earnings beat. Ross Stores has a Zacks Rank #3 (Hold), but its history of positive surprises makes it a promising candidate to beat earnings estimates again [1].

Ross Stores' stock performance has been robust, with a market cap of $44.81 billion and a current stock price of $137.01. The stock has a 1-year low of $122.36 and a 1-year high of $163.60. Its price-to-earnings ratio of 21.64 and PEG ratio of 2.62 suggest that the stock is fairly valued [1].

Institutional investors remain bullish on Ross Stores. JPMorgan Chase & Co. recently reduced its stake in the company but still holds a significant position, indicating continued interest in the retail sector. Other prominent investors, such as Ken Fisher and Jefferies Group, also hold stakes in Ross Stores [2].

Despite the positive earnings surprises and institutional investor support, Ross Stores faces challenges in the retail sector. The company's success relies on its ability to capitalize on manufacturing overruns and retail liquidation sales, which can be unpredictable. Additionally, the company's strategy of targeting middle and lower-income consumers may be affected by changes in consumer spending patterns [2].

In conclusion, Ross Stores' consistent earnings beats and robust financial performance make it an attractive investment for investors seeking growth in the retail sector. However, the company's success is not guaranteed and depends on its ability to navigate the challenges of the retail industry.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-lpl-financial-llc-sells-46115-shares-of-ross-stores-inc-nasdaqrost-2025-08-04/
[2] https://www.gurufocus.com/news/3043415/jpmorgan-chase-co-reduces-stake-in-ross-stores-inc