Should Ross Stores’ (ROST) 40 New Stores Prompt a Closer Look From Investors?

• Recently, Ross Stores completed its fiscal 2025 store expansion by opening 40 new locations, increasing its total store count to 2,273 and attracting positive attention from analysts.
• This growth milestone underscores investor confidence in the company’s ability to execute expansion and capitalize on shifting consumer preferences toward value retail.
• We’ll now examine how the completion of Ross Stores’ latest expansion program could shape the company’s broader investment narrative.

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Ross Stores Investment Narrative Recap

Ross Stores’ shareholders are likely to believe in the company’s ability to harness resilient demand for value retail, expand its physical footprint, and protect margins as it enters new markets. The recent opening of 40 new stores, attracting analyst upgrades and a brief share price rally, may support the near-term growth narrative but doesn’t materially offset the current biggest risk: rising distribution costs and ongoing margin pressures from tariffs. For now, these headwinds remain the central concern for short-term earnings stability. One relevant announcement that ties directly to this news is the company’s updated earnings guidance, which projects comparable store sales growth of 2% to 3% for the remainder of the year. While this guidance suggests management’s confidence in absorbing the expansion’s costs, it remains closely linked to the catalysts discussed, such as improved store productivity and customer traffic driven by the recent openings. Yet, in contrast to the optimism surrounding expansion, investors should be aware of the company’s vulnerability to persistent inflation and the potential limitations of its...

Read the full narrative on Ross Stores (it's free!)

Ross Stores is projected to reach $25.0 billion in revenue and $2.4 billion in earnings by 2028. This outlook assumes a yearly revenue growth rate of 5.1%, with earnings rising by $0.3 billion from the current $2.1 billion.

Uncover how Ross Stores' forecasts yield a $164.59 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members provided five fair value estimates for Ross Stores, ranging from US$10.84 to US$164.59. While estimates vary widely, many participants still point to distribution cost inflation as a challenge that could weigh on future profitability and growth. Explore these diverse viewpoints and see how your outlook compares.

Explore 5 other fair value estimates on Ross Stores - why the stock might be worth less than half the current price!

Build Your Own Ross Stores Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ross Stores research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Ross Stores research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ross Stores' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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