Can Ross Stores Keep Up With Retail Giants Target And Walmart? We'll See At Market Close

As retailers continue to report their earnings for the fourth quarter of 2022, investors are waiting for the upcoming earnings report from Ross Stores ROST, which is set to issue its fourth quarter results after market close on Tuesday.

With Target Corporation TGT and Walmart Inc WMT having recently posted strong earnings reports and the Census Bureau's retail sales report indicating an uptick in consumer spending, investors are hopeful that Ross Stores will continue the trend of positive results.

Backward Looking Data: Target reported better-than-expected earnings and sales for its fourth quarter, with EPS of $1.89 beating estimates of $1.40 and sales of $31.395 billion surpassing estimates of $30.72 billion.

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The San Bruno, California-based company also provided guidance for first quarter EPS of $1.50 to $1.90 and full-year EPS of $7.75-$8.75, beating analyst estimates.

Meanwhile, Walmart beat earnings estimates by 13.25% with EPS of $1.71 and reported sales of $164.00 billion, exceeding estimates by 2.65%. The company also raised its quarterly dividend and provided guidance for FY24 adjusted EPS.

The Census Bureau's retail sales report showed that U.S. retail and food services sales were up 3% in January, beating estimates for a 1.8% increase.

Core retail sales, which exclude gasoline and autos, were up 2.3%, outperforming estimates for a 0.8% increase. Total sales from November through January were up 6.1% from the same period a year ago. These positive results indicate that consumer spending is on the rise, which bodes well for retailers like Ross Stores.

Analysts expect Ross to report an EPS of $1.24 on revenues of $5.41 billion, and investors are hoping for positive guidance from the company for the next quarter.

Last quarter, the company beat EPS estimates by $0.19, with shares climbing 10% the following day. If the company beats with positive guidance, it could potentially lead to another boost in share price.

Citigroup in February maintained a buy rating on Ross Stores, and raised the price target from $116 to $133. Telsey Advisory Group maintained a market perform rating with a $120 price target. 

Price action: Shares of Ross Stores are trading 0.49% higher to $111.45, according to data from Benzinga Pro.

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