| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 27.8x | 17.8x | Bottom tier | |
Growth | 66 | 14.0% | 7.1% | Around median | |
Quality | 80 | 22.2% | 4.5% | Top tier | |
Safety | 84 | 0.1x | 2.6x | Top tier | |
Capital Return | 61 | 0.70% | 2.12% | Around median | |
Momentum | 78 | 69.0% | 2.9% | Top tier | |
Sentiment | 85 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ross Stores operates an off-price retail model that relies on purchasing merchandise and closeout deals from a network of suppliers and then selling them at prices below those of traditional retailers. The company operates through the Ross and dd's DISCOUNTS chains; Ross maintains a mix of price points, while dd's is positioned at lower price points. Growth depends on increasing store traffic, improving the brand and fashion assortment, accelerating inventory turnover, and opening new locations, with marketing and an enhanced store experience helping attract new customers, recapture lapsed customers, and increase visit frequency among existing customers.
In Q2 of fiscal 2027, sales rose 13% to $6.3 billion, and comparable-store sales grew 10%, driven primarily by an increase in transactions. Net income reached $851 million versus $508 million in the corresponding period, and earnings per share rose to $2.66 from $1.56. Operating margin improved by 610 basis points, but 405 basis points of this improvement came from tariff refunds; excluding them, the operating improvement was 205 basis points.
Performance was broad-based across both chains, categories, and regions, led by home and cosmetics, with the more fashion-oriented parts of home, such as décor and housewares, recording mid-teens growth. dd's DISCOUNTS also delivered a strong quarter, although its one-year performance trailed Ross, while its cumulative two-year performance was very close. During the first six months of fiscal 2026, sales rose 17% to $12.3 billion, comparable-store sales increased 13%, and earnings per share climbed to $4.69 from $3.03.
The average analyst target is $274.14, with a wide range of $234 to $310 and a consensus Buy rating, while Citigroup raised its target to $290 on August 21, 2026 and maintained its Buy rating. The average target exceeds the upper end of the 52-week range of $257, while the high target exceeds that level by approximately 21%, but the cited price-to-earnings multiple of 28.8 times already reflects high growth expectations. Optimism is based on the raised fiscal 2026 earnings outlook, although $0.60 per share of the increase comes from tariff refunds, making the sustainability of sales growth and underlying margins a critical factor in the valuation.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Sales rose 13% to $6.3 billion, comparable-store sales increased 10%, and most of the growth resulted from a higher number of transactions. Ross and dd's attracted new customers and recaptured lapsed customers, while existing customers visited more frequently and increased their spending. Home and cosmetics led performance, and the Midwest was the strongest region. Net income rose to $851 million and earnings per share increased to $2.66.
The company expects annual earnings per share of between $8.61 and $8.77, compared with $6.61 in fiscal 2025. The outlook includes approximately $0.60 per share from tariff refunds. In Q3 of fiscal 2026, it expects comparable growth of between 6% and 7% and earnings per share of between $1.75 and $1.83. For Q4 of fiscal 2026, it expects comparable growth of between 4% and 5% and earnings per share of between $2.17 and $2.26.
Operating margin rose by 610 basis points in Q2 of fiscal 2027, but tariff refunds contributed approximately 405 basis points. Excluding this effect, the operating improvement remained strong at 205 basis points. Merchandise margin rose by 110 basis points, distribution costs declined by the equivalent of 100 basis points, and occupancy cost leverage improved by 25 basis points. Conversely, incentives and fuel and freight costs pressured some expense items.
Automated analysis for informational purposes only — not investment advice.
The company raised its 2026 plan to 115 new locations from 110 locations. The Q3 fiscal 2026 plan includes opening 51 stores, divided between 41 Ross locations and 10 dd's locations. The annual plan also includes relocating or closing approximately 5 to 10 stores. Management said that new stores opened during the year exceeded the planned performance level of 70% to 75%, and it is pleased with the expansion in the Northeast.
The first risk is that $253 million, or approximately $0.60 per share, of the results for the first six months of fiscal 2026 came from tariff refunds. Consolidated inventory also rose 18%, which could increase the need for markdowns if demand slows, despite management's confirmation of strong turnover and low current markdown levels. The company faces higher freight costs due to fuel without hedging, along with price competition from traditional retailers and off-price companies. The outlook also indicates that comparable-store sales growth will slow to 6%–7% and then 4%–5% in the next two quarters.
The analyst consensus is Buy, and the average price target is $274.14. The target range extends from $234 to $310, reflecting a meaningful difference in estimates of the sustainability of growth and margins. On August 21, 2026, Citigroup raised its target to $290 after quarterly earnings per share of $2.66 versus expectations of $1.94. The average target exceeds the top of the 52-week range of $257, but the cited price-to-earnings multiple of 28.8 times leaves less room for error if growth slows.
