Ross Stores, Inc. (ROST) - Stock Analysis

Last updated: Jun 7, 2026

Consumer CyclicalClosed

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Robust recent comps and earnings (record sales, ~12% total / 9% comps, EPS up ~21%), a new 2-year repurchase authorization and 10% dividend hike, and aggressive 2026 store expansion (~110 new stores) have fueled a fresh technical breakout (price ~4% above 21-day SMA at new highs). These shareholder and growth catalysts support further near-term upside, especially on dips toward 213–220 support.

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Idea window: 4/7/2026 – 4/14/2026Sector: Consumer Cyclical

AI Analyst Overview

Last Price
$240.13
Market Cap
$69.40B
1D Return
+0.43%
YTD Return
+33.84%

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Valuation Metrics

P/E
32.0
P/B
11.1
P/S
3.0
EV/EBITDA
20.0
Div Yield
0.77%

Fundamental Analysis

8.0

Key Financial Insights: • Strong Cash Flow • Solid Balance Sheet • Rich Valuation Ross Stores is highly profitable and cash-generative with a solid balance sheet, but its premium valuation limits upside despite healthy retail margins.

profitability
overvalued

Price Behavior

6.0

Key Price Behavior Insights: • Dip buying • Near-term resistance • Wide volatility Support Level: $223-$224 Resistance Level: $234-$235 Over the last month, ROST has recovered constructively and remains modestly bullish, but it needs a clean break above $234-$235 to extend higher while $223-$224 is the key support.

bullish
neutral

Sentiment & News

8.0

Key News Insights: • Q1 Beat • Traffic Growth • Valuation Risk Ross Stores delivered a strong Q1 beat with 17% comparable sales growth and raised guidance, boosting the stock even as valuation and tougher comparison concerns remain.

earnings
growth
AI

AI Summary

7.0
Positive

ROST now looks less like a defensive retailer and more like a high-quality compounder with real traffic/comp growth and strong cash generation, but with the stock already pricing in continued outperformance, the key risk is valuation compression if comps slow or execution slips at the same time as store expansion ramps.

Compounder
ValuationRisk
Execution
AI summary updated 6 days ago

Description

Ross Stores, Inc. operates a national off-price retail chain under the Ross Dress for Less and dd's DISCOUNTS banners, selling apparel, footwear, accessories and home fashions to value-conscious consumers. The company serves mainly middle- and moderate-income households through separate brand formats and, as of July 5, 2022, operated about 1,950 stores across 40 states, the District of Columbia and Guam. Incorporated in 1957, Ross Stores is headquartered in Dublin, California.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Apr 7Apr 14ROSTRoss Stores, Inc.
Robust recent comps and earnings (record sales, ~12% total / 9% comps, EPS up ~21%), a new 2-year repurchase authorization and 10% dividend hike, and aggressive 2026 store expansion (~110 new stores) have fueled a fresh technical breakout (price ~4% above 21-day SMA at new highs). These shareholder and growth catalysts support further near-term upside, especially on dips toward 213–220 support.
Closed+3.2%
Mar 6Mar 13ROSTRoss Stores, Inc.
ROST is a retail momentum leader: a recent earnings beat with upbeat guidance plus a new buyback and 10% dividend hike drove a breakout ~13.5% over 21 days to record levels, with price ~7.9% and ~2.3σ above its 21‑day mean—capital returns and off‑price demand support near‑term upside, especially on pullbacks toward the 205–206 support/21‑day band.
Closed-2.4%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.