Assessing Ross Stores: Insights From 11 Financial Analysts

Ross Stores ROST has been analyzed by 11 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $171.09, with a high estimate of $180.00 and a low estimate of $152.00. Highlighting a 2.38% decrease, the current average has fallen from the previous average price target of $175.27.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive Ross Stores is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ross Stores. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Ross Stores compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ross Stores's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Ross Stores's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Ross Stores analyst ratings.

Discovering Ross Stores: A Closer Look

Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The company opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are often filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates about 350 DD's Discounts chains targeting lower-income shoppers.

Understanding the Numbers: Ross Stores's Finances

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Ross Stores's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2024, the company achieved a revenue growth rate of approximately 2.97%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Ross Stores's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.64%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Ross Stores's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.41% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Ross Stores's ROA excels beyond industry benchmarks, reaching 3.3%. This signifies efficient management of assets and strong financial health.

Debt Management: Ross Stores's debt-to-equity ratio is below the industry average at 1.09, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.