ROST Stock Analysis — Ross Stores
Sector: Retail
AI Verdict
Ross trades at 30.6x next year's earnings for just 11.8% expected EPS growth, so you're paying a premium the numbers don't yet support unless its sourcing moat keeps driving outperformance.
Competitive Moat
Ross Stores operates an off-price retail model that relies on deep vendor relationships and rapid inventory turnover, letting it source branded apparel at discounts competitors can't easily match. Its scale and supply chain agility create barriers for new entrants trying to replicate its treasure-hunt shopping experience.
Summary
Ross's off-price model has driven a 62.07% one-year return as shoppers hunt for value in a mixed retail environment.
Where It Stands
Shares are up 62.07% in the past year, trade at 30.6x forward earnings versus the consumer staples median of 20x, and the RSI of 53.3 signals a neutral momentum zone.
Key Metrics
- RSI: 53.3 — Neutral
- Trailing P/E: 34.2x
- Forward P/E: 30.6x
- PEG Ratio: 2.96
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $72.8B
- Dividend Yield: 0.01%
- 1-Year Return: 62.07%
- 52-Week High: $230.44
- 52-Week Low: $124.49
Analyst Consensus
19 Buy · 6 Hold · 0 Sell (25 analysts)
Bull Case
Forward EPS is expected to grow 11.8% while the company trades at a premium 30.6x forward P/E, reflecting investor willingness to pay up for consistent execution.
Bear Case
With a trailing PEG of 2.96 and a P/E 50% above the sector median, any P/E compression to the median would imply a roughly 33% downside from current multiples.
Catalyst to Watch
Watch for quarterly same-store sales updates—an upside surprise could justify the premium, while a miss could trigger a sharp multiple reset.