Ross Stores Inc

Ross Stores, Inc. surged after raising its full-year fiscal 2026 earnings guidance to $8.61–$8.77 per share, up from $7.50–$7.74, and well above consensus of $7.82. The off-price retailer's Q2 2026 report showed total sales up 13% to $6.3 billion, with comparable-store sales jumping 10% versus 7.6% expected, driven by customer traffic. Operating profits reached $1.1 billion, with operating margin expanding 610 basis points, including a 405 basis point boost from IEEPA tariff refunds. Reported diluted EPS was $2.66, including a $0.60 per share tariff refund benefit; excluding that, adjusted EPS was $2.06, still beating expectations. The company also increased its fiscal 2026 store expansion plan to 115 new locations. Analysts responded positively, with Barclays raising its price target to $298 and Deutsche Bank to $294, though concerns remain about non-recurring tariff benefits and an 18% year-over-year increase in merchandise inventories.

Kohl's shares fell 6% to $16.65 in early Wednesday trading despite reporting adjusted diluted EPS of $1.28, well above the $0.57 consensus, on revenue of $3.52 billion, as investors focused on the $150 million tariff refund that drove the beat and a 0.9% decline in comparable sales. The company raised its full-year 2026 guidance, now expecting net sales and comparable sales down 1.5% to flat, adjusted operating margin of 3.5% to 4%, and adjusted diluted EPS of $1.80 to $2.40, while restarting share repurchases of up to $100 million under an existing $3 billion authorization and declaring a $0.125 quarterly dividend. In contrast, peers Ross Stores and TJX Companies posted organic comparable sales growth of 10% and 4%, respectively, with Ross also benefiting from $253 million in tariff refunds but still expanding operating margin by 205 basis points excluding that benefit, and TJX raising its full-year adjusted EPS guidance to $5.15 to $5.20. Kohl's cash and equivalents climbed to $821 million from $174 million a year earlier, but the stock's decline suggests investors are skeptical of the demand picture without one-time tailwinds.

BJ's Wholesale Club Holdings, Ross Stores, Flowers Foods, and Broadcom all moved on company-specific news. BJ's Wholesale Club Holdings jumped 5.6% after reporting second-quarter fiscal 2026 earnings of $1.36 per share, beating the Zacks Consensus Estimate of $1.16 per share. Ross Stores gained 4.4% after reporting second-quarter fiscal 2026 earnings of $2.06 per share, surpassing the Zacks Consensus Estimate of $1.93 per share. Flowers Foods declined 2.1% after reporting second-quarter fiscal 2026 earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.23 per share. Broadcom gained 1.2% following a report that the company plans to raise more than $60 billion in debt to fund a deal supporting Anthropic.

Jim Cramer discussed the diverging stock performance of Ross Stores and TJX Companies on August 17th, attributing Ross Stores' 30% year-to-date gain to CEO Jim Conroy while lamenting TJX's 8.9% decline despite strong company performance. TJX shares fell 4.2% on August 19th after fiscal Q2 earnings showed 4% comparable same-store sales growth and raised full-year profit margin guidance to 11.2% and EPS to $4.09 to $4.13, but Q3 margin guidance of 11.8% to 11.9% and missed Q3 EPS and same-store sales estimates sparked concerns about shipping costs and wages. Ross Stores shares rose 4.4% on August 21st after beating revenue and earnings by a wide margin, growing operating profit excluding tariff refunds, posting 10% comparable store sales growth, and raising full-year earnings guidance. Both stocks trade at high forward P/E multiples—27 for TJX and 29.76 for Ross—leaving little room for error, and Ross has a higher short interest at 3.53% of float versus TJX's 1.76%.

Broadcom is in talks with a group of lenders to raise more than $60 billion in debt for an AI chip financing deal that will benefit Anthropic PBC and other companies, according to people with knowledge of the matter. Ross Stores shares climbed after the off-price retailer boosted its earnings per share forecast for the full year, citing strength throughout the second quarter with comparable store sales growth supported by both an increase in new customers and higher engagement from existing customers. BJ's Wholesale also boosted its adjusted earnings per share guidance for the full year, beating the average analyst estimate.

Ross Stores raised its full-year earnings forecast and projected stronger comparable-store sales, sending its shares up nearly 9% in premarket trading. The discount retailer now expects full-year earnings per share of $8.61 to $8.77, up from its prior range of $7.50 to $7.74, and sees third-quarter comparable sales rising 6% to 7% and fourth-quarter sales up 4% to 5%, ahead of analyst expectations. Second-quarter revenue rose about 13% to $6.26 billion, beating estimates of $6.18 billion. Separately, cryptocurrency-linked stocks rallied as Bitcoin jumped 8.9% to $78,135.60, with Strategy up 10.2%, Coinbase up 6.8%, and Circle Internet Group up 6.4% in premarket trading. O-I Glass shares climbed 6.6% after Citi upgraded the stock to Buy from Neutral and raised its price target to $9 from $8, while Flowers Foods fell 4.2% after reporting weaker-than-expected second-quarter results.

Several companies made notable premarket moves on Friday. BJ's Wholesale shares ticked slightly higher after the retailer reported second-quarter earnings of $1.36 per share excluding items on revenue of $6.09 billion, beating FactSet estimates of $1.17 per share on $5.97 billion in revenue, and raised its full-year EPS guidance to $4.60 to $4.80 from $4.40 to $4.60. Ross Stores jumped over 8% after posting better-than-expected second-quarter results and issuing third-quarter earnings guidance above estimates. Crypto-related stocks including Robinhood, Coinbase, and Strategy rose at least 4.5% as bitcoin headed for a weekly gain of more than 20%, boosted by the White House hosting crypto leaders and urging Congress to pass the Clarity Act. Broadcom gained over 1% after Bloomberg News reported the semiconductor maker plans to raise over $60 billion in debt to support Anthropic.

Stock futures edged slightly higher early Friday as markets attempted to rebound from Thursday's steep selloff, with gains supported by a pullback in U.S. Treasury yields. Strategy rallied 10% after the firm returned to profitability on its Bitcoin holdings, swinging to an estimated $1.4B unrealized gain as the cryptocurrency surged nearly 22% over five sessions to around $78,500. Ross Stores jumped 9% after reporting stronger-than-expected quarterly results, with sales up 14% to $6.3B, comparable store sales up 10%, and EPS of $2.66, while raising its FY2026 EPS outlook to $8.61-$8.77 from $7.50-$7.74. OSI Systems plunged 14% after Q4 revenue declined 4.1% Y/Y to $484.1M, missing estimates by $45.6M, and its FY2027 revenue guidance of $1.875B-$1.93B came in below the $1.94B consensus. Aveanna Healthcare Holdings tumbled 9% after existing stockholders priced a 15M-share secondary offering at $11.75 per share, with the company receiving no proceeds. Flowers Foods fell 5% after Q2 revenue declined 4% Y/Y to $1.19B, missing estimates by $40M, and the company cut its FY2026 outlook to $5.07B-$5.14B in sales and $0.75-$0.85 in adjusted EPS, below consensus.

Ross Stores reported better-than-expected second-quarter sales, with revenue rising 13.3% year over year to $6.26 billion, beating analyst estimates of $6.15 billion. GAAP earnings per share came in at $2.66, 36.7% above the consensus estimate of $1.95, and the company raised its full-year EPS guidance to $8.69 at the midpoint, 10.9% above analyst expectations. Same-store sales rose 10% year over year, up from 2% in the same quarter last year, and operating margin expanded to 17.6% from 11.5%. The company now expects comparable store sales to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter, with EPS ranges of $1.75 to $1.83 and $2.17 to $2.26 respectively.

Ross Stores declared a quarterly dividend of $0.445 per share, in line with the previous payout. The dividend is payable September 30 to shareholders of record on September 8, with the ex-dividend date also September 8. The forward yield is 0.76%. This marks the third consecutive quarter the company has announced a dividend of $0.445.

Ross Stores has a positive Earnings ESP of +6.03% and a Zacks Rank #2 (Buy), signaling a strong chance of another earnings beat in its upcoming quarterly report. The discount retailer has beaten estimates in its last two quarters, with an average surprise of 12.60%, including an 18.82% beat last quarter when it reported $2.02 per share versus the $1.70 consensus. Zacks research indicates that stocks with a positive Earnings ESP and a Zacks Rank #3 or better produce a positive surprise nearly 70% of the time.

Zacks Equity Research identifies The TJX Companies, Ross Stores, Target and Dollar Tree as standout stocks in the Retail-Discount Stores industry, which holds a Zacks Industry Rank of 33, placing it in the top 13% of over 250 industries. The industry has risen 17.6% over the past year, outperforming the broader Retail-Wholesale sector's 2.6% gain but trailing the S&P 500's 19.9% advance. TJX Companies is expected to grow sales by 5.9% and EPS by 9.3% in the current fiscal year, while Ross Stores is projected to increase sales by 10.2% and EPS by 17.1%. Target's consensus estimates call for sales growth of 3.7% and EPS growth of 9.9%, and Dollar Tree is forecast to lift sales by 6.5% and EPS by 21.7%.

The consumer discretionary sector fell nearly 5% in July, underperforming the broader market, with Tesla leading the decline. Tesla dropped 26.83% after reporting second-quarter earnings below estimates and its first negative free cash flow in over a year at minus $1.1 billion, driven by $5.8 billion in capital expenditures. Ross Stores was the sector's best performer, surging 18.49% as it opened 47 new stores and remained on track for about 110 openings this year, benefiting from consumers seeking value. General Motors gained 17.66% after raising its full-year outlook on strong demand for high-margin trucks and SUVs, while Norwegian Cruise Line fell 10.35% on mixed results and a warning that its turnaround is in early stages. Seeking Alpha analyst Scott Ruesterholz noted that affordability pressures and rising interest rates are building downside risks for consumer spending.

The Consumer Staples Select Sector SPDR Fund rose 2.6% in July, as gains in discount retailers offset declines in alcoholic beverage and tobacco stocks. Target and Dollar General each rose about 10%, while Coca-Cola gained 7%, Molson Coors added 6.7%, and Philip Morris advanced 5.7%. Constellation Brands fell 6.3% to become the sector's worst performer, followed by Altria down 5.6%, Keurig Dr Pepper down 4%, and Procter & Gamble and Walmart each down 2%. Analyst Justin Purohit said Target's rally was driven by company-specific execution, while Dollar General's strength reflected consumers trading down amid inflation pressures, and he flagged discount retailers including Dollar Tree, TJX Companies, Ross Stores, and Burlington Stores as best positioned if inflation remains sticky.

The S&P 500 Index has gained 8.5% year to date heading into August, a level that historically favors bullish August returns. Since 1975, August has been the third-worst month for the index with an average return of 0.21%, but when the year-to-date gain through July is between 5% and 13%, August has averaged a 1.78% return with positive results 77% of the time. The index spent July hovering just below its all-time high without breaking through, a pattern that has occurred 11 previous times and led to an average slight loss of 0.12% the following month, though a new high was reached 55% of the time. Over the past ten years, the August-September period has averaged a 0.4% loss for the S&P 500, yet certain stocks have consistently outperformed, including Insulet and Ross Stores, which beat the index in nine of those ten years.

Ross Stores has opened 47 new stores nationwide during June and July, consisting of 35 Ross Dress for Less and 12 dd's DISCOUNTS locations across 15 states and territories. The company is on track to open approximately 110 stores this year. Executive Vice President of Property Development Richard Lietz said the openings allow the company to deliver compelling value to more customers while creating jobs and supporting local communities. Ross Stores also made donations to local Boys & Girls Clubs or First Book literacy partners in connection with the openings.

The eight general merchandise retail stocks tracked by this publication reported a very strong first quarter, with revenues beating analysts' consensus estimates by 2.5% and next quarter's revenue guidance coming in 2.2% above expectations. Kohl's reported revenues of $3.17 billion, down 2% year on year and in line with expectations, making it the slowest grower in the group, though its stock has risen 33.4% since the report. Five Below led the group with revenues of $1.29 billion, up 32.5% year on year and beating estimates by 5.7%, while also delivering the highest guidance raise among peers, yet its stock fell 9.1%. Ollie's Bargain Outlet posted revenues of $658.9 million, up 14.2% but missing estimates by 0.7%, and its stock dropped 16.4%. Burlington Stores reported revenues of $2.86 billion, up 14.1% and beating estimates by 2.7%, with its stock up 5.9%. Ross Stores achieved the biggest analyst estimate beat with revenues of $6.01 billion, up 20.6% and surpassing expectations by 6.6%, and its stock gained 7.6%.

Ross Stores has been assigned Zacks' highest Rank of #1 after full-year earnings estimates rose 5.7% over the past three months. The stock has returned 20.09% year to date and 68.83% over the past year, despite an 8.61% decline in the last 30 days. At a recent price of US$219.46, Ross Stores trades at a roughly 17% discount to the average analyst target. One valuation narrative pegs fair value at US$256.18, implying the stock is about 14.3% undervalued, though its current P/E ratio of 30.4x exceeds the 24.6x peer average and the 19.9x fair ratio, suggesting a premium that could limit upside.

Ross Stores is expanding rapidly while many major retailers close locations, having already opened 40 new stores this year and planning 90 more by the end of 2025. The discount retailer uses an off-price model, buying other retailers' excess inventory and reselling it for up to 70% less. This strategy has made Ross one of the few retailers growing in a slowing economy.

U.S. consumer confidence edged up to 91.2 in June from a downwardly revised 90.6 in May, supported by easing inflation as lower oil and gasoline prices reduced pressure on household budgets. The Present Situation Index declined 3 points to 116.4, while the Expectations Index advanced 3 points to 74.4, indicating mixed underlying sentiment. Zacks Investment Research identifies Five Below, Casey's General Stores, Ross Stores, and Dollar Tree as well-positioned to benefit from improved disposable income and selective consumer spending. Five Below and Casey's both carry a Zacks Rank of 1, or Strong Buy, with consensus estimates projecting double-digit sales and earnings growth for the current fiscal year. Ross Stores also holds a Zacks Rank of 1, while Dollar Tree carries a Zacks Rank of 2, or Buy.

TimesSquare Capital Management highlighted Ross Stores as a leading contributor in its U.S. Mid Cap Growth Strategy for the first quarter of 2026, noting the off-price retailer's shares advanced 21% after reporting outstanding results. The firm stated that execution across marketing, customer engagement, new brands, and the store experience demonstrates the off-price and value-focused model is resonating. Ross Stores stock closed at $208.83 per share on June 29, 2026, with a one-month return of -6.70% and a 52-week gain of 60.68%, giving it a market capitalization of $66.99 billion. The number of hedge funds holding Ross Stores rose to 83 at the end of the first quarter, up from 71 in the prior quarter.

Wall Street analysts have set ambitious price targets for MongoDB, DigitalOcean, and Ross Stores, but StockStory urges caution on MongoDB while highlighting DigitalOcean and Ross Stores as more promising. MongoDB’s consensus target of $394.68 implies a 17.5% return, yet its complex enterprise implementation and forecasted 4-percentage-point decline in free cash flow margin raise concerns. DigitalOcean, with a $178.77 target and 17.7% implied return, benefits from 17.6% average billings growth and an expected 30.7% sales acceleration. Ross Stores, trading at $208.83 with a $256.18 target and 22.7% implied return, has posted 5.4% average same-store sales growth and strong returns on capital.

Madison Investments' Mid Cap Fund highlighted Ross Stores as one of its top five contributors in the first quarter of 2026, citing one of the retailer's strongest quarters of same-store-sales growth in some time and management's expectation that sales momentum will continue into 2026. The fund noted that while a favorable consumer environment is benefiting all off-price retailers, Ross is outperforming due to various in-store and marketing initiatives resonating with consumers. Ross Stores shares closed at $208.83 on June 29, 2026, with a one-month return of negative 6.70% and a 52-week gain of 60.68%, giving it a market capitalization of $66.99 billion. The Madison Mid Cap Fund itself declined 4.28% in the quarter, underperforming the Russell Midcap Index's 1.29% return, as a market rotation toward heavy-asset, low-obsolescence businesses and sectors like Energy and Materials posed challenges for the fund's positioning.

Ross Stores posted the strongest first-quarter results among discount retailers, with revenue of $6.01 billion, up 20.6% year over year and beating analyst estimates by 6.6%. The company also exceeded expectations for next-quarter EPS guidance and EBITDA. Five Below reported revenue of $1.29 billion, up 32.5% year over year, surpassing estimates by 5.7% and raising its full-year guidance, though its stock fell 15.2%. Ollie's Bargain Outlet had the weakest performance, with revenue of $658.9 million missing estimates by 0.7% and the softest full-year guidance update. TJX posted revenue of $14.32 billion, up 9.2% year over year and beating estimates by 2.4%, while Burlington Stores reported revenue of $2.86 billion, up 14.1% year over year and exceeding estimates by 2.7%. Overall, the five discount retailers tracked beat consensus revenue estimates by 3.3% and provided next-quarter revenue guidance 2.2% above expectations, though their average share price has declined 4.5% since reporting.

Ross Stores continues to attract inflation-pressured shoppers to its off-price stores, reinforcing its value-focused retail model. Recent Wall Street commentary highlights solid operational execution, with Barclays raising its price recommendation and Wells Fargo shifting to a more neutral stance on valuation. The company's inclusion in Steven Cohen's dividend-focused portfolio signals that large institutional investors view Ross Stores as a relevant income and total return candidate. Looking ahead, key questions center on how long inflation-pressured shopping patterns persist and how the company balances store growth, merchandising, and profitability with current market expectations.

Ross Stores has been upgraded to a Zacks Rank #1 (Strong Buy) after posting the strongest comparable-store sales quarter in its four-decade history. The off-price retailer reported a 17% jump in same-store sales, adjusted earnings of $2.02 per share that beat the consensus estimate by 18.9%, and revenues of $6.01 billion, up 21% year over year. Management raised its full-year guidance to comparable-sales growth of 6–7% and earnings per share of $7.50 to $7.74, while analysts have lifted the current-year consensus estimate about 5.8% over the past 60 days to near $7.74. The stock has climbed roughly 27% year-to-date, breaking out to new highs on strong volume, and the company plans to open about 110 new stores in fiscal 2026 as it expands toward a long-term target of 2,900 Ross and 700 dd’s DISCOUNTS locations.

Casey's General Stores, Ross Stores, and Dillard's each hold a Zacks Rank #1 (Strong Buy), reflecting growing analyst optimism and positive earnings estimate revisions. Casey's operates nearly 3,000 convenience stores across the Midwest and has consistently delivered better-than-expected quarterly results, driven by robust inside sales, expanding margins, and acquisition-driven growth. Ross Stores continues to attract bargain-hunting shoppers with its off-price treasure-hunt experience, maintaining healthy profitability through strong traffic and disciplined inventory management, with Wall Street raising earnings estimates and a significant runway for store expansion. Dillard's has distinguished itself among department stores with disciplined inventory and expense controls, consistently delivering strong margins and impressive free cash flow, while rewarding shareholders through dividends and share repurchases. With earnings expectations moving higher, these three retailers could offer intriguing upside for growth-oriented investors.