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Ross Stores Crushes Expectations, Analysts Rush to Raise Price Targets

MarketDash Editorial Team
16 days ago
Ross Stores delivered a blowout third quarter that sent shares soaring 7.2% and prompted eight major Wall Street firms to boost their price targets. The off-price retailer beat earnings and revenue estimates while raising guidance for both the fourth quarter and full fiscal year.

Ross Stores, Inc. (ROST) just gave Wall Street exactly what it wanted to hear. The off-price retailer reported third-quarter results Thursday after the closing bell that beat expectations across the board, and analysts are tripping over themselves to raise their price targets.

The numbers tell a compelling story. Ross Stores posted quarterly earnings of $1.58 per share, comfortably ahead of the $1.41 analyst consensus. Revenue came in at $5.6 billion, topping the $5.42 billion estimate. For a retailer in today's uncertain consumer environment, those are impressive results.

CEO Jim Conroy sounded pleased with the performance. "We are pleased with our third-quarter sales results, which accelerated from the prior quarter. Our merchandise assortment of compelling brand name values resonated with shoppers, and our new marketing campaign drove excitement and higher customer engagement," he said.

But here's what really got analysts excited: the guidance raise. Ross Stores lifted its fourth-quarter GAAP EPS outlook to between $1.77 and $1.85, versus the $1.79 analyst estimate. More significantly, the company raised its full fiscal 2025 GAAP EPS guidance to between $6.38 and $6.46, well above the $6.23 analyst estimate. That's the kind of confidence that gets Wall Street's attention.

Investors certainly noticed. Ross Stores shares surged 7.2% to $172.03 on Friday, a strong vote of confidence in the company's momentum.

The earnings beat triggered a wave of price target adjustments from major Wall Street firms. Here's the rundown of analyst moves:

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $160 to $175. B of A Securities analyst Lorraine Hutchinson kept a Buy rating and bumped the target from $175 to $200. Baird analyst Mark Altschwager maintained an Outperform rating and raised the target from $170 to $182.

Evercore ISI Group analyst Michael Binetti stuck with an Outperform rating and lifted the target from $175 to $195. JP Morgan analyst Matthew Boss maintained an Overweight rating and raised the target from $188 to $200. UBS analyst Jay Sole kept a Neutral rating and raised the target from $163 to $169.

Bernstein analyst Aneesha Sherman maintained a Market Perform rating and raised the target from $147 to $159. Barclays analyst Adrienne Yih maintained an Overweight rating and raised the target from $164 to $183.

The broad-based upgrades reflect growing confidence that Ross Stores has found a winning formula, even as other retailers struggle to navigate shifting consumer preferences and economic headwinds.

Back to News

Ross Stores Crushes Expectations, Analysts Rush to Raise Price Targets

MarketDash Editorial Team
16 days ago
Ross Stores delivered a blowout third quarter that sent shares soaring 7.2% and prompted eight major Wall Street firms to boost their price targets. The off-price retailer beat earnings and revenue estimates while raising guidance for both the fourth quarter and full fiscal year.

Ross Stores, Inc. (ROST) just gave Wall Street exactly what it wanted to hear. The off-price retailer reported third-quarter results Thursday after the closing bell that beat expectations across the board, and analysts are tripping over themselves to raise their price targets.

The numbers tell a compelling story. Ross Stores posted quarterly earnings of $1.58 per share, comfortably ahead of the $1.41 analyst consensus. Revenue came in at $5.6 billion, topping the $5.42 billion estimate. For a retailer in today's uncertain consumer environment, those are impressive results.

CEO Jim Conroy sounded pleased with the performance. "We are pleased with our third-quarter sales results, which accelerated from the prior quarter. Our merchandise assortment of compelling brand name values resonated with shoppers, and our new marketing campaign drove excitement and higher customer engagement," he said.

But here's what really got analysts excited: the guidance raise. Ross Stores lifted its fourth-quarter GAAP EPS outlook to between $1.77 and $1.85, versus the $1.79 analyst estimate. More significantly, the company raised its full fiscal 2025 GAAP EPS guidance to between $6.38 and $6.46, well above the $6.23 analyst estimate. That's the kind of confidence that gets Wall Street's attention.

Investors certainly noticed. Ross Stores shares surged 7.2% to $172.03 on Friday, a strong vote of confidence in the company's momentum.

The earnings beat triggered a wave of price target adjustments from major Wall Street firms. Here's the rundown of analyst moves:

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $160 to $175. B of A Securities analyst Lorraine Hutchinson kept a Buy rating and bumped the target from $175 to $200. Baird analyst Mark Altschwager maintained an Outperform rating and raised the target from $170 to $182.

Evercore ISI Group analyst Michael Binetti stuck with an Outperform rating and lifted the target from $175 to $195. JP Morgan analyst Matthew Boss maintained an Overweight rating and raised the target from $188 to $200. UBS analyst Jay Sole kept a Neutral rating and raised the target from $163 to $169.

Bernstein analyst Aneesha Sherman maintained a Market Perform rating and raised the target from $147 to $159. Barclays analyst Adrienne Yih maintained an Overweight rating and raised the target from $164 to $183.

The broad-based upgrades reflect growing confidence that Ross Stores has found a winning formula, even as other retailers struggle to navigate shifting consumer preferences and economic headwinds.