Ross Stores (ROST) Soars 8.42% Ahead of Earnings Report

Ross Stores (ROST) shares rose 0.88% today, marking the sixth consecutive day of gains, with a total increase of 8.42% over the past six days. The stock price reached its highest level since January 2025, despite an intraday decline.

The strategy of buying ROST shares after they reached a recent high and holding for one week resulted in a 37.23% return over the past five years, with the portfolio reaching a high on May 15, 2025, according to backtesting data. This approach outperformed the broader market, which had a 13% return over the same period.

Overall Performance: The strategy yielded a robust 37.23% return over five years, highlighting its effectiveness in capturing short-term price movements following ROST's highs.

Market Outperformance: By holding ROST for one week after it reached a high, the strategy significantly outperformed the broader market, which had a 13% return over the same period. This indicates that the strategy leveraged momentum effectively.

Timing Considerations: The ability to identify ROST's recent highs and initiate a one-week holding period underscores the importance of timing in achieving superior returns. This requires a keen analysis of market trends and ROST's price movements.

Risk Considerations: While the strategy delivered strong returns, it is crucial to assess its risk profile. The maximum drawdown during this period was -17.95%, which occurred in 2022, highlighting the strategy's vulnerability during market downturns.

In conclusion, the strategy of buying ROST shares after they reached a recent high and holding for one week demonstrated strong performance, outpacing the broader market. However, it was not immune to market volatility, as evidenced by the significant drawdown in 2022. This strategy would be suitable for investors looking to capitalize on short-term price movements and willing to hold positions for extended periods, such as one week.

Ross Stores is set to release its first-quarter fiscal 2025 earnings report on May 22, 2025. This upcoming report is expected to significantly influence the company's stock price. Analysts predict a slight decline in earnings per share (EPS) to $1.43, representing a 2.1% year-over-year decrease. However, revenues are anticipated to rise by 2.3% to $4.97 billion. The consensus EPS estimate has been revised upward by 0.4% over the past 30 days, suggesting a potential positive impact on investor sentiment.

In addition to the earnings report, Ross Stores has recently expanded its physical presence by opening 19 new locations. This strategic move is likely to enhance the company's operational performance and could positively affect its stock price. The expansion indicates Ross Stores' commitment to growing its market reach and customer base, which may attract more investors and drive stock price growth.