Ross Stores Shares Dip 1.93% Amid 212th-Ranked Trading Volume as Analysts Forecast Earnings Decline and Tariff Pressures Weigh

Ross Stores (ROST) fell 1.93% on August 14, 2025, with a trading volume of $0.48 billion, ranking 212th in the market. The retailer faces a challenging earnings outlook, with analysts forecasting a 4.4% year-over-year decline in earnings to $1.52 per share despite a 4.7% revenue increase to $5.53 billion. Margins are under pressure from U.S. tariffs and inflation, with an estimated $0.11–$0.16 per share cost impact from tariffs. Operational strategies, including diversified sourcing and closeout inventory, aim to offset these pressures, but full-year guidance remains withdrawn amid macroeconomic uncertainty.

Analyst sentiment is mixed, with a Zacks Rank of #3 (Hold) reflecting cautious optimism. The stock’s intrinsic value is estimated at $155.25, suggesting a 4.7% undervaluation, though a PEG ratio of 4.38 raises concerns about overvaluation relative to growth prospects. Institutional flows remain negative, contrasting with positive retail investor inflows. Technical indicators also show weakness, with an overbought RSI and bearish Williams %R signaling potential for a near-term correction. The options market anticipates a 5.6% price swing post-earnings, exceeding the historical average.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 delivered a 6.98% compound annual growth rate, with a maximum drawdown of 15.59%. While the approach showed steady growth, the significant mid-2023 decline underscores the risks of high-volume trading strategies. Investors in ROST should weigh the company’s margin resilience against macroeconomic headwinds and divergent analyst expectations before taking positions.