Ross Stores Stock Reaches New One-Year High
Shares of Ross Stores reached a new one-year high following an analyst upgrade and continued institutional investment. The stock's performance highlights the sustained strength of the off-price retail model. This financial momentum positions Ross as a formidable competitor for sourcing surplus branded inventory, potentially tightening the supply available to peers.
- Recent analyst price target increases include Citigroup raising its target to $224, Jefferies to $210, and Telsey Advisory Group to $220. The average analyst target price is approximately $195.78. - Institutional ownership stands at a high of 92.7%, signaling strong confidence from large investors. Over the last two years, significant institutional buyers included Norges Bank, Vanguard Group Inc., and Price T Rowe Associates Inc. - For its upcoming fourth-quarter earnings, analysts project Ross will report an adjusted profit of $1.90 per share on $6.44 billion in sales, which would represent year-over-year increases of 6% and 9%, respectively. - In its most recently reported third quarter, Ross Stores' revenue grew 10.4% year-over-year to $5.6 billion, and it opened 40 new locations, bringing its total to 2,273 stores at the quarter's end. - The company’s financial health is strong, with a net profit margin of 9.5%, which is near the top of the typical 2% to 10% range for the retail sector. - The global off-price retail market was valued at $335.48 billion in 2024 and is forecast to grow to $557.36 billion by 2030, driven by consumer demand for value on branded merchandise. - A key challenge for the off-price sector is the unpredictable nature of inventory supply, which relies on sourcing surplus goods, overstocks, and canceled orders from manufacturers and other retailers. - Ross's Board of Directors approved a new two-year, $2.1 billion stock repurchase program for 2024 and 2025 and increased the quarterly cash dividend by 10%.
