Evaluating Ross Stores: Insights From 12 Financial Analysts

12 analysts have shared their evaluations of Ross Stores ROST during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $176.08, a high estimate of $190.00, and a low estimate of $160.00. Witnessing a positive shift, the current average has risen by 6.66% from the previous average price target of $165.08.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Ross Stores. The following summary outlines 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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Ross Stores's market standing. Stay informed and make data-driven decisions with 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 firm 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.

Key Indicators: Ross Stores's Financial Health

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Positive Revenue Trend: Examining Ross Stores's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.15% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Ross Stores's net margin is impressive, surpassing industry averages. With a net margin of 9.97%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 10.46%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Ross Stores's ROA excels beyond industry benchmarks, reaching 3.61%. 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 1.14, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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