ROST shares closed down 1.24 percent at $222.41, underperforming a broad market rally in which the S&P 500 gained 0.6 percent, the Dow rose 0.83 percent, and the Nasdaq increased 0.64 percent.
The discount retailer is expected to report next-quarter earnings of $1.82 per share, up 15.19 percent year-over-year, with revenue reaching $6.2 billion, up 10.68 percent. For the full fiscal year, Zacks estimates ROST will earn $8.77 per share—a 32.68 percent jump—on $25.65 billion in revenue, up 12.77 percent.
Rost holds a Zacks Rank of #2 (Buy), and the consensus EPS estimate has remained stable over the past 30 days, signaling analyst confidence in near-term earnings delivery. However, ROST trades at 25.67x forward P/E, a 6 percent premium to the Retail-Discount Stores industry average of 23.24x. The stock's PEG ratio of 1.76 matches its industry peer average, suggesting the growth rate justifies its valuation—in theory.
