Ross Stores (NASDAQ:ROST) Sets New 12-Month High on Strong Earnings

Ross Stores, Inc. (NASDAQ:ROST) shares reached a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $210.50 and last traded at $210.50, with a volume of 40077 shares traded. The stock had previously closed at $197.64.

The apparel retailer reported $2.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.90 by $0.10. The company had revenue of $6.64 billion for the quarter, compared to analyst estimates of $6.42 billion. Ross Stores had a return on equity of 36.70% and a net margin of 9.43%.The firm’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.65 EPS.

Ross Stores Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be given a $0.445 dividend. This represents a $1.78 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, March 13th. This is an increase from Ross Stores’s previous quarterly dividend of $0.41. Ross Stores’s payout ratio is 24.51%.

Key Ross Stores News

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Q4 outperformance: Ross reported stronger-than-expected Q4 revenue (~$6.64B) and EPS ($2.00), with comps up ~9%, signaling traffic and mix improvements that support upside to sales and earnings. Ross Stores Fourth-Quarter Sales Rise as Traffic Picks Up
• Positive Sentiment: Upbeat guidance and capital returns: Management gave Q1 and FY26 guidance above prior consensus, raised the quarterly dividend ~10% (to $0.445) and authorized a two‑year $2.55B buyback — a material share‑count tailwind. These actions drove much of the buying momentum. Ross Stores Proves the Off-Price Uptrend Is Far From Over
• Positive Sentiment: Analyst follow‑through: Multiple firms raised ratings and price targets (Goldman, Citi, Wells Fargo, Guggenheim, Telsey), reflecting confidence the off‑price cycle and Ross’s execution can sustain growth. Ross Stores Analysts Boost Their Forecasts After Upbeat Q4 Results
• Neutral Sentiment: Long-term performance context: Commentary and retrospectives (e.g., “If you invested $1,000 … 15 years ago”) provide background on shareholder returns but don’t change the near‑term thesis. If You Invested $1000 In Ross Stores Stock 15 Years Ago, You Would Have This Much Today
• Negative Sentiment: Valuation and profit‑taking risk: Some analysts and commentators warn Q4 strength has stretched near‑term valuation and the post‑release pop leaves the stock vulnerable to consolidation or pullback if execution slips. Ross Stores: Strong Q4 Results Stretch The Valuation
• Negative Sentiment: Insider/institutional flows: Reports show notable insider selling and mixed institutional activity (large trims by some managers offset by adds from others), creating a potential overhang if selling accelerates. Ross Stores jumps after Q4 beat, upbeat spring commentary, and new buyback/dividend hike

Analyst Upgrades and Downgrades

ROST has been the subject of a number of research analyst reports. Wells Fargo & Company raised their price target on shares of Ross Stores from $205.00 to $235.00 and gave the stock an “overweight” rating in a report on Wednesday. Deutsche Bank Aktiengesellschaft set a $221.00 target price on Ross Stores in a research report on Thursday, January 8th. UBS Group set a $208.00 price target on Ross Stores in a research report on Thursday. Jefferies Financial Group reissued a “buy” rating and issued a $205.00 price objective on shares of Ross Stores in a report on Monday, December 1st. Finally, JPMorgan Chase & Co. lifted their target price on Ross Stores from $215.00 to $232.00 and gave the stock an “overweight” rating in a report on Monday, February 23rd. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Ross Stores currently has an average rating of “Moderate Buy” and a consensus target price of $208.29.

Institutional Trading of Ross Stores

Hedge funds have recently modified their holdings of the stock. Woodline Partners LP lifted its holdings in Ross Stores by 39.9% in the first quarter. Woodline Partners LP now owns 27,875 shares of the apparel retailer’s stock valued at $3,562,000 after acquiring an additional 7,951 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Ross Stores by 23.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 615 shares of the apparel retailer’s stock valued at $79,000 after purchasing an additional 117 shares in the last quarter. Assetmark Inc. lifted its stake in shares of Ross Stores by 58.9% in the 2nd quarter. Assetmark Inc. now owns 3,600 shares of the apparel retailer’s stock valued at $459,000 after purchasing an additional 1,335 shares during the period. Atlantic Union Bankshares Corp purchased a new stake in Ross Stores during the second quarter worth $106,000. Finally, Resona Asset Management Co. Ltd. boosted its holdings in Ross Stores by 6.1% during the second quarter. Resona Asset Management Co. Ltd. now owns 109,511 shares of the apparel retailer’s stock worth $13,977,000 after buying an additional 6,280 shares in the last quarter. Hedge funds and other institutional investors own 86.86% of the company’s stock.

Ross Stores Trading Up 0.6%

The company has a quick ratio of 0.90, a current ratio of 1.58 and a debt-to-equity ratio of 0.16. The company’s 50-day moving average is $192.72 and its 200 day moving average is $171.54. The company has a market cap of $69.49 billion, a price-to-earnings ratio of 32.50, a price-to-earnings-growth ratio of 3.15 and a beta of 0.97.

Ross Stores Company Profile

Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.