ROST Stock Analysis — Ross Stores
Sector: Retail
AI Verdict
You're paying a steep price for modest growth, and while the off-price moat is real, the numbers say this is expensive for what you get unless growth surprises to the upside.
Competitive Moat
Ross Stores operates an off-price retail model that leverages deep vendor relationships and scale to source excess inventory at a discount, passing savings to budget-conscious shoppers. Its defensibility comes from a nationwide footprint and a treasure-hunt shopping experience that drives repeat traffic and is difficult for e-commerce to replicate.
Summary
RSI at 28.4 signals the stock is oversold despite a 63.17% gain in the past year.
Where It Stands
Ross trades at 28.4x next year's earnings versus the 20x sector median for consumer staples, with a 1-year return of 63.17% and an RSI of 28.4 indicating an oversold setup.
Key Metrics
- RSI: 28.4 — Oversold
- Trailing P/E: 29.9x
- Forward P/E: 28.4x
- PEG Ratio: 5.68
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $68.9B
- Dividend Yield: 0.01%
- 1-Year Return: 63.17%
- 52-Week High: $242.81
- 52-Week Low: $126.32
Analyst Consensus
19 Buy · 7 Hold · 0 Sell (26 analysts)
Bull Case
The stock is up 63.17% in the past year, showing momentum even as it trades at a forward P/E of 28.4x with 5.3% expected EPS growth.
Bear Case
Paying 28.4x forward earnings for just 5.3% EPS growth means any P/E compression toward the 20x sector median could erase over 25% of the stock's value.
Catalyst to Watch
Watch for upcoming quarterly earnings—if EPS growth beats the 5.3% consensus, the premium multiple may hold.