Zacks Investment Research·Sep 22, 2026
Buy 3 Big Discount Retailers to Gain From Solid Near-Term Price UpsideROST, DLTR and DG are backed by value-focused strategies, improving estimates and store initiatives that could support growth.
Ross Stores is experiencing a powerful earnings inflection, with Q2 2026 revenue growth reaccelerating to 13.3% and gross margin expanding to 33.8%, driving a 70.5% year-over-year increase in EPS. This performance is supported by robust cash generation, with a...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has reaccelerated to 13.3% in Q2 2026, fueled by a significant gross margin expansion to 33.8% that is driving operating income growth of 72.3% year-over-year.
Ross Stores Inc. has a wide moat, indicating strong competitive advantages and sustainable long-term profitability.
Top holder Vanguard Group owns 12.2% of Ross Stores, reflecting institutional confidence in the company.
ROST's trailing P/E of 29.80 and forward P/E of 26.81 suggest reasonable valuation relative to earnings growth potential.
Trailing total returns as of 10/2/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 20, 2026 | $2.66+36.4% vs $1.95 | $6.3B+1.7% vs $6.2B |
Q2 2026 May 21, 2026 | $2.02+16.8% vs $1.73 | $6.0B+6.5% vs $5.6B |
Q2 2026 Mar 3, 2026 | $2.00+5.3% vs $1.90 | $6.6B+3.4% vs $6.4B |
Q4 2025 Nov 20, 2025 | $1.58+11.3% vs $1.42 | $5.6B+3.4% vs $5.4B |
ROST, DLTR and DG are backed by value-focused strategies, improving estimates and store initiatives that could support growth.
The State Street Consumer Staples Select Sector SPDR ETF (XLP) has climbed 6.6% so far in 2026, according to State Street data as of September 21. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) has fallen more than 7% over the same stretch, a 13.
Investors interested in stocks from the Retail - Discount Stores sector have probably already heard of Dollar General (DG) and Ross Stores (ROST). But which of these two stocks presents investors with the better value opportunity right now?
Ross Stores and Target are drawing shoppers from rivals as consumers hunt for value. New traffic data show which discounters are gaining ground.
Benchmark ROST against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Ross Stores, Inc. (ROST)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $234.10 | $75.72B | 35.42 | 7.67% | 9.43% | 36.68% | 0.7% | |
| $133.59 | $147.58B | 27.38 | 7.12% | 9.73% | 59.77% | — | |
| $275.32 | $17.33B | 28.95 | 8.76% | 5.85% | 39.82% | — | |
| $87.91 | $5.31B | 22.60 | 16.62% | 9.79% | 14.58% | — | |
| $18.92 | $2.12B | 7.98 | -4.28% | 1.75% | 6.68% | — | |
| $22.76 | $5.99B | 9.81 | -1.67% | 3.29% | 15.81% | — |
Ross Stores, Inc. (ROST) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Ross Stores, Inc. (ROST) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 20, 2026·SEC
May 27, 2026·SEC
May 21, 2026·SEC
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Ross Stores, Inc. (ROST) stock FAQ — growth, dividends, profitability & financials explained
Ross Stores, Inc. (ROST) reported $24.51B in revenue for fiscal year 2025. This represents a 1351% increase from $1.69B in 1996.
Ross Stores, Inc. (ROST) grew revenue by 7.7% over the past year. This is steady growth.
Yes, Ross Stores, Inc. (ROST) is profitable, generating $2.66B in net income for fiscal year 2025 (9.4% net margin).
Yes, Ross Stores, Inc. (ROST) pays a dividend with a yield of 0.70%. This makes it attractive for income-focused investors.
Ross Stores, Inc. (ROST) has a return on equity (ROE) of 36.7%. This is excellent, indicating efficient use of shareholder capital.
Ross Stores, Inc. (ROST) generated $2.79B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
