Analysts Forecast Strong Earnings Growth for Ross Stores Amid Stock Rally

2026-02-22 companies

Dublin, Sunday, 22 February 2026.
Ross Stores is projected to grow earnings over 8% next fiscal year. While the stock rallies to $201.45, it currently trades above the average analyst price target of $190.94.

Financial Outlook and Valuation Metrics

Investors are closely monitoring Ross Stores (NASDAQ: ROST) as the company approaches its next earnings release, estimated for March 3, 2026 [1]. The off-price retailer has demonstrated robust financial health, with earnings per share (EPS) expected to rise from $6.17 to $6.68 in the coming year, representing a growth rate of 8.27% [1]. This projected expansion comes on the heels of a strong performance in the previous quarter, where the company reported an EPS of $1.58, surpassing analyst estimates by $0.20 [1]. As the fiscal year ending January 31, 2027, progresses, market participants are weighing these fundamental growth metrics against the stock’s recent price appreciation [1].

Stock Performance vs. Analyst Expectations

The stock closed at $201.45 on Friday, February 20, 2026, marking an 11.8% increase since the beginning of the year, when it traded at $180.14 [1]. This rally has pushed the share price beyond the consensus price target set by Wall Street. Currently, the average analyst price target stands at $190.94, which implies a potential downside of -5.217% from the closing price [3]. Despite this valuation gap, the stock has outperformed its peers in the Retail-Wholesale group, which has seen a slight decline of approximately 0.8% year-to-date [6]. The company’s market capitalization has swelled to $65.16 billion, reflecting strong investor confidence despite the premium valuation relative to analyst targets [1].

Institutional Activity and Technical Indicators

Institutional sentiment remains a critical driver for Ross Stores, with 86.86% of the stock currently held by institutional investors and hedge funds [4]. Recent filings reveal significant activity among major stakeholders; the Ontario Teachers Pension Plan Board recently acquired a new stake valued at approximately $75.17 million, purchasing 493,244 shares [5]. Conversely, Tredje AP fonden reduced its position by 18.4% during the third quarter, though it retains a substantial holding [4]. Technically, the stock is trading well above its moving averages, with the 50-day moving average at $188.59 and the 200-day moving average at $167.91, signaling sustained bullish momentum over the medium to long term [4].

Analyst Consensus and Future Outlook

The broader analyst community maintains a generally positive outlook, with a consensus rating of “Moderate Buy” derived from 22 analysts [3]. Of these, 15 have issued buy ratings and two have issued strong buy ratings, while five analysts suggest holding the stock [3]. While the current price of $201.45 exceeds the average target, price forecasts range significantly, with a high estimate of $224.00 and a low of $130.00 [3]. As the retailer prepares to release its latest financial results, the market will be looking to see if the company’s operational efficiency and earnings growth can justify the current valuation premium [1][2].

Sources

Retail Earnings