## ROST Still Fresh After Hitting $176 Peak—What's the Next Move?



Ross Stores stock has been turning heads lately, with strong momentum pushing shares to a 52-week high of $176 just recently. The retailer is up 8.3% over the past month alone, and year-to-date gains stand at 15.1%—notably outpacing both its retail sector (3.7% gain) and discount retail segment (2.5% return). But with such a fresh rally, investors are naturally asking: is there still juice left in this name, or are we looking at a potential pullback?

## The Earnings Track Record Speaks for Itself

One reason ROST keeps climbing is its consistent ability to beat expectations. The company has crushed earnings estimates in all of the last four quarters. In November 2025, Ross delivered $1.58 in EPS compared to a consensus forecast of $1.40—a solid beat that kept investors interested.

Looking ahead, management projects $6.36 EPS for the current fiscal year on revenues of $22.27 billion (a 0.63% EPS increase paired with 5.39% revenue growth). For the following year, expectations point to $6.99 per share on $23.44 billion in sales—representing 9.93% and 5.28% growth respectively. That improving trajectory is exactly what growth-focused investors want to see.

## Pricing: Not Cheap, But Not Unreasonable

Here's where the analysis gets interesting. ROST trades at 27.4X current-year EPS—right in line with its peer group average of 27.4X, so no red flag there on that specific metric. However, on a trailing cash flow basis, the stock sits at 22.6X versus the industry average of 17.9X, suggesting it's trading at a premium on that measure.

The PEG ratio of 3.89 doesn't scream "undervalued," but it's also not alarming. The Zacks Style Scores paint a mixed picture: a D for Value, but a B for Growth and an A for Momentum, yielding a B-grade VGM Score overall. Translation: this isn't a deep-value play, but it's got solid growth and momentum characteristics.

## The Zacks Rank Gives It the Green Light

What matters most here is the Zacks Rank: ROST holds a #2 (Buy) rating, driven by positive earnings revision momentum. Combined with its B VGM Score, the stock checks the boxes for investors following a growth-with-momentum strategy. While valuations aren't screaming bargain, the earnings power and forward trajectory suggest ROST still has room to deliver returns in the coming weeks and months.

The key question isn't whether the stock has peaked—it's whether you believe in the company's ability to keep beating estimates and growing earnings at the projected rates.
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