ROST Stock Analysis — Ross Stores
Sector: Retail
AI Verdict
Ross trades at 31.1x next year's earnings for just 10% EPS growth, so you're paying a premium the numbers don't yet support unless its sourcing moat keeps delivering above-average returns.
Competitive Moat
Ross Stores operates off-price retail locations that source excess inventory from brands at steep discounts, allowing them to undercut traditional retailers on price. Their scale and deep vendor relationships create a sourcing advantage that is difficult for smaller competitors to replicate.
Summary
Ross Stores is notable for its off-price retail model, which has delivered a 66.21% return over the past year.
Where It Stands
With a 1-year return of 66.21%, an RSI of 59.1 (neutral), and a forward P/E of 31.1x versus the consumer staples median of 20x, the stock is trading at a premium for the sector.
Key Metrics
- RSI: 59.1 — Neutral
- Trailing P/E: 34.1x
- Forward P/E: 31.1x
- PEG Ratio: 2.69
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $78.6B
- Dividend Yield: 0.01%
- 1-Year Return: 66.21%
- 52-Week High: $257.00
- 52-Week Low: $143.39
Analyst Consensus
19 Buy · 7 Hold · 0 Sell (26 analysts)
Bull Case
Forward EPS growth of 10.0% and a trailing 11.9% revenue growth show the business is still expanding despite its $78.6B market cap.
Bear Case
At 31.1x next year's earnings and a trailing PEG of 2.69, you're paying up for growth that isn't especially fast, so any P/E compression to the sector median would mean a 35%+ drop.
Catalyst to Watch
Watch for upcoming quarterly earnings — any slowdown in same-store sales or margin pressure could challenge the premium valuation.