Update shared on 11 Nov 2025
Fair value Increased 1.00%Analysts have raised their price targets for Ross Stores, boosting the consensual fair value from $164.59 to $166.24. They cite stronger Q2 results, easing tariff pressures, and improved visibility into future earnings.
Analyst Commentary
Following Ross Stores' latest quarterly results, analysts offered a balanced view on the company's outlook, highlighting factors affecting both its near-term and long-term prospects.
Bullish Takeaways- Bullish analysts are encouraged by Ross Stores' solid Q2 performance, noting that accelerating comparable sales point to strong consumer demand and effective merchandising execution.
- Visibility into future earnings has improved as tariff pressures are expected to further abate in coming quarters, thanks to earlier mitigation strategies.
- Several analysts have raised their price targets, citing the company’s positioning to benefit from a resilient lower-to-middle income consumer segment.
- Restoration of guidance, although slightly below prior levels, provides investors with improved clarity and confidence around management’s outlook for fiscal 2025.
- Bearish analysts note that although Ross delivered a modest Q2 beat, guidance continues to be conservative with little change to near-term earnings expectations.
- Ongoing tariff impacts, though lessening, still present a headwind to merchandise margin and earnings, potentially capping upside in the immediate term.
- Some caution remains as recent price target increases are incremental, and the latest quarter did not reveal significant catalysts to shift the overall investment thesis.
What's in the News
- Ross Stores is opening a wave of new Ross Dress for Less locations nationwide on October 11, with each new store expected to create 55 to 60 jobs, both full- and part-time (Key Developments).
- In support of grand openings, Ross Stores will make donations to local Boys & Girls Clubs and community organizations in each region (Key Developments).
- “dd's DISCOUNTS,” a division of Ross Stores, is expanding with new locations opening September 27, each creating approximately 45 jobs (Key Developments).
- The company appointed William Sheehan as its next Chief Financial Officer, succeeding Adam Orvos who will retire on September 30, 2025 (Key Developments).
- Ross Stores recently provided new earnings guidance for Q3 and Q4, 2025, and announced completion of a share repurchase tranche totaling $262.54 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $164.59 to $166.24 per share.
- Discount Rate increased modestly from 8.35% to 8.43%.
- Revenue Growth assumption edged higher, increasing from 5.18% to 5.26% year over year.
- Net Profit Margin remains stable, showing a minimal rise from 9.58% to 9.58%.
- Future P/E multiple has increased marginally from 27.17x to 27.43x projected earnings.
Disclaimer
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