• In recent weeks, Ross Stores surpassed analyst expectations for earnings per share for two consecutive quarters, with an average positive surprise of about 2.7%.

• This consistent earnings outperformance has led several analysts to express greater optimism about Ross Stores’ future prospects, as evidenced by bullish sentiment in recent research updates.

• With analysts highlighting renewed confidence in Ross Stores’ earnings trajectory, we’ll examine how this momentum influences the company’s broader investment narrative.

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To be a shareholder in Ross Stores, you need to believe in the ongoing power of value-driven retail, robust in-person shopping, and the company’s ability to drive incremental growth through store openings and disciplined inventory management. The strong earnings surprises recently reported are encouraging but haven’t fundamentally changed the most important short term catalyst, consumer foot traffic and spending at new stores, or the largest risk, which is ongoing pressure from rising tariffs and higher distribution costs squeezing profit margins.

The company’s recent announcement of continued aggressive store growth, with plans for around 90 new locations this year, directly ties into the investment thesis and supports that short-term catalyst. While this expands Ross’s national footprint and has the potential to boost top-line growth, it also highlights the inherent risk of overextension and market saturation, which can slow same-store sales growth.

By contrast, investors should be aware that even strong earnings results can be overshadowed if cost pressures continue to …

Read the full narrative on Ross Stores (it’s free!)

Ross Stores’ narrative projects $25.0 billion revenue and $2.4 billion earnings by 2028. This requires 5.1% yearly revenue growth and a $0.3 billion earnings increase from $2.1 billion.

Uncover how Ross Stores’ forecasts yield a $164.59 fair value, a 3% upside to its current price.

Five individual fair value estimates for Ross Stores from the Simply Wall St Community span a wide US$10.84 to US$164.59 per share. While opinions differ, the company’s rapid physical expansion and exposure to cost inflation remain central factors for future performance.

Explore 5 other fair value estimates on Ross Stores – why the stock might be worth as much as $164.59!

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