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Ross Stores (ROST) has an average rating of overweight and mean price target of $261.19, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
US softline retailers are expected to take advantage of an ongoing data center construction boom, with Abercrombie & Fitch (ANF), Urban Outfitters (URBN), and Macy's (M) among those likely to see "outsized" benefits, UBS Securities said in a note e-mailed Monday.US commercial data center capacity has increased at a nearly 30% to 40% annual pace over the last two years, with installed capacity seen rising 20% to 30% annually in the near term, the brokerage said, citing industry experts.The data center construction boom is expected to lift the economy and boost the consumer spending backdrop for apparel and footwear in the concerned regions. However, the data center buildout is not expected to be distributed evenly across the country, UBS analysts Jay Sole and Mauricio Serna said in the note to clients."We believe retailers with a high percentage of stores located in areas with strong data center growth will benefit more than retailers with less exposure to these areas will," the analysts wrote.Abercrombie & Fitch, Urban Outfitters, Macy's, and Steven Madden (SHOO) are among the retailers poised to see "outsized" benefits, Sole and Serna said. On the other hand, Kohl's (KSS), Bath & Body Works (BBWI), Buckle (BKE), Boot Barn (BOOT), and American Eagle Outfitters (AEO) have "the most relevant low exposure," the duo wrote.Among off-price retailers, Ross Stores (ROST) has the "most relevant high exposure," while TJX (TJX) is on the other side of the spectrum, according to the note."While some regions have embraced data centers, other localities have not," UBS said. "Some municipalities reject data center proposals because the long-term local economic payoff is perceived as limited. They also have concerns about resource and infrastructure strain."The brokerage expects all softline stocks to benefit from their use of AI, as well as the technology's impact on the overall economy."Softline companies are taking AI very seriously and AI is likely already having a positive impact on the industry's financial performance," Sole and Serna said. "We believe the meaningful returns companies are already and will continue to achieve on their AI investments will drive upside (earnings-per-share) surprises."Price: $75.30, Change: $-1.92, Percent Change: -2.49%
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month price target by $26 to $231, based on 30x our FY 27 EPS estimate and well above the company's three-year average forward P/E multiple of 23.5, reflecting our view of the continued outperformance of off-price retailers due to a near-perfect operating environment where middle- and low-income consumers continue to trade down and seek out deals due to below-average savings rates and elevated inflation. We raise our FY 27 and FY 28 EPS estimates by $0.45 to $7.70 and $0.65 to $8.15, respectively. ROST posted strong FQ1 results well above estimates and raised its full-year guidance. The company now expects comparable store sales to grow 6% to 7% and EPS between $7.50 and $7.74. Shares now trade over 30x consensus for FY 27, well above their historical average and in line with competitor The TJX Companies (TJX **). We continue to believe these companies are operating in a near-perfect macroeconomic backdrop for off-price but view the valuation as priced to perfection.
Consumer stocks rose late Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) adding 0.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) increasing 0.4%.In sector news, US consumer sentiment declined to a fresh record low in May as people fear that high gasoline prices could erode their purchasing power, University of Michigan said Friday. The main sentiment index tumbled 10% to 44.8 from last month. The consensus in a Bloomberg-compiled poll was for May's print to stay unchanged from a preliminary 48.2 estimate.In corporate news, Ross Stores (ROST) shares climbed 8% after the discount retailer lifted its full-year outlook and reported better-than-expected fiscal Q1 results.Imax (IMAX) shares jumped past 14% after The Wall Street Journal reported the company is exploring a sale and has approached entertainment companies as potential buyers.Estee Lauder (EL) shares rose nearly 12% after the cosmetics company and Puig said late Thursday they have ended discussions over a potential merger.Uber (UBER) is evaluating options for a complete buyout of Delivery Hero, Bloomberg reported. Uber shares were down 2.4%.
Consumer stocks advanced Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) increasing 0.1% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 0.9%.In sector news, US consumer sentiment declined to a fresh record low in May as people fear that high gasoline prices could erode their purchasing power, University of Michigan said Friday. The main sentiment index tumbled 10% to 44.8 from last month. The consensus in a Bloomberg-compiled poll was for May's print to stay unchanged from a preliminary 48.2 estimate.In corporate news, Ross Stores (ROST) shares climbed past 6% after the discount retailer lifted its full-year outlook and reported better-than-expected fiscal Q1 results.Imax (IMAX) shares jumped 15% after The Wall Street Journal reported the company is exploring a sale and has approached entertainment companies as potential buyers.Estee Lauder (EL) shares rose 9% after the cosmetics company and Puig said late Thursday they have ended discussions over a potential merger.
Consumer stocks advanced Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) increasing 0.1% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 0.5%.In corporate news, Ross Stores (ROST) shares climbed past 6% after the discount retailer lifted its full-year outlook and reported better-than-expected fiscal Q1 results.
Ross Stores (ROST) could continue gaining market share and outgrowing department store peers over the next several years amid strong consumer demand for value-focused retail, UBS said in a Thursday note.UBS said it expects slightly higher full-year gross margins for Ross Stores, driven by stronger merchandise margins and lower tariff costs, though gains could be partly offset by higher freight and store expenses."We believe ROST is capable of outgrowing Department Store peers over the next few years," UBS analysts said, adding Ross' initiatives "could fuel further outsized growth for a multiyear period."However, UBS said Ross' valuation and investor positioning may limit upside. "We continue to rate ROST Neutral and see a balanced upside/downside skew," the analysts said.UBS maintained its neutral rating and raised its price target to $232 from $227.Price: $231.88, Change: $+14.69, Percent Change: +6.76%
Ross Stores (ROST) has an average rating of overweight and mean price target of $260.06, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $232.73, Change: $+15.54, Percent Change: +7.16%
The benchmark US stock measures were tracking in the green before the open Friday as investors continue to monitor negotiations between the US and Iran to end the Middle East conflict.The S&P 500 edged up 0.1%, the Dow Jones Industrial Average added 0.2% and the Nasdaq was slightly up in premarket activity. The indexes finished the previous trading session higher, with the Dow reaching an all-time peak.US Secretary of State Marco Rubio reportedly said Thursday that there were "good signs" that a peace deal between the two countries is in sight, but warned that any agreement would be "unfeasible" if Iran insists on controlling shipping through the crucial Strait of Hormuz. Iran is discussing setting up a permanent toll system with Oman to formalize its control of the strait, Bloomberg News reported."No one in the world is in favor of a tolling system," Rubio told reporters, according to CNBC. "It can't happen [and] it would be unacceptable."The semi-official Iranian Students' News Agency reportedly said that the latest US proposal to Iran has "narrowed the gaps to some extent" between the two sides, although "further reductions require an end to the temptation for war from Washington."West Texas Intermediate crude oil rose 1.9% to $98.19 a barrel before the open, while Brent increased 2.5% to $105.18."The oil market remains overly sensitive to Iran-related headlines, with participants continuing to pin considerable hope on reports that talks between the US and Iran are progressing," ING Bank said in a report on Thursday.Treasury yields were down in premarket action, with the two-year rate retreating 0.7 basis points to 4.08% and the 10-year rate off 2.4 basis points to 4.56%.Shares of IBM (IBM), GlobalFoundries (GFS) and D-Wave Quantum (QBTS) were up pre-bell after being selected for US government funding under the Trump administration's plan to strengthen the country's position in quantum computing.Ross Stores (ROST) rose 5.3% after the discount retailer lifted its full-year outlook and reported better-than-expected fiscal first-quarter results. Take-Two Interactive Software (TTWO) gained 5.8% as the video game publisher reported a smaller-than-expected fiscal fourth-quarter loss and said it was on track to launch the highly anticipated "Grand Theft Auto VI" on Nov. 19.BJ's Wholesale Club (BJ) and Booz Allen Hamilton (BAH) report their latest financial results before the bell.Friday's economic calendar has the final University of Michigan consumer sentiment report for May at 10 am ET, while the weekly Baker Hughes oil-and-gas rig count posts at 1 pm. Federal Reserve Governor Christopher Waller is scheduled to speak at 10 am.Richmond Fed President Tom Barkin said Thursday that lifting interest rates may not be an appropriate response to curb price pressures."Raising rates to weaken demand doesn't address the root cause behind supply shock-driven inflation. It doesn't free up trade routes, reopen factories or melt ice," he said in prepared remarks for an event in North Carolina. "That said, I've been asking myself whether we've entered an era where supply shocks will become more frequent."Gold decreased 0.7% to $4,513 per troy ounce, while bitcoin slipped 0.4% to $77,221.
Ross Stores (ROST) shares rose early Friday after the discount retailer lifted its full-year outlook and reported better-than-expected fiscal first-quarter results.The company now anticipates earnings to come in between $7.50 and $7.74 per share for fiscal 2026, Chief Executive Jim Conroy said in a statement late Thursday. The retailer previously projected the metric to be in a range of $7.02 to $7.36, while the current consensus on FactSet is for $7.68.Same-store sales are pegged to grow by 6% to 7% for the ongoing fiscal year, according to Conroy, compared with prior projections for a gain of 3% to 4%. The Street is looking for an increase of 6.7%."As our efforts to improve topline growth continue, we remain focused on disciplined, consistent execution across the business," Conroy said. "Moving forward, we believe we are well positioned to capture additional market share and drive profitable growth over the long term."The stock rose 5.3% in the most recent premarket activity.Earlier in the week, off-price retailer TJX (TJX) raised its full-year outlook after posting stronger-than-expected fiscal first-quarter results. Target (TGT) also lifted its fiscal 2026 sales growth guidance, while retail giant Walmart (WMT) issued a downbeat fiscal second-quarter earnings outlook.Ross Stores' EPS climbed to $2.02 for the three-month period ended May 2 from $1.47 the year before, topping the average analyst estimate of $1.73. Sales advanced 21% to $6.01 billion, ahead of the Street's view for $5.64 billion."Momentum was solid throughout the quarter, with broad-based strength across the business," according to Conroy. The CEO cited customer traffic as the "primary driver" of the robust sales trend, while high consumer spending related to tax refunds also benefited the retailer's results.Comparable store sales jumped 17%, exceeding the market's forecast for growth of 9.4%, buoyed by an increase in the number of transactions, Chief Financial Officer William Sheehan said during an earnings call, according to a FactSet transcript."The quarter started strongly as we transitioned well from the holiday selling season into spring, supported by more balanced inventory levels that allowed us to drive strong demand in February where we have historically struggled," Conroy said on the call. "The strength continued with solid mid-teen comps for the balance of the quarter."For the current quarter, Ross Stores expects EPS to be at $1.85 to $1.93 and sales to increase by 9% to 11% on an annual basis, Sheehan told analysts. The Street is looking for EPS of $1.92 and sales of $6.09 billion. Comparable store sales are anticipated to increase by 6% to 7%, compared with the current average analyst estimate on FactSet for growth of 7%.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Ross Stores delivered exceptional Q1 2026 results with EPS of $2.02 (+37% Y/Y), $0.32 above consensus and well above the guidance range of $1.60-$1.67, and total sales of $6.01B (+21% Y/Y), $407M above estimates. Comparable store sales surged 17% versus flat performance in the prior year, driven by customer traffic growth and enhanced marketing initiatives. Operating margin expanded significantly 120 bps to 13.4%, well above the guided range of 11.8%-12.1%, demonstrating strong operational leverage from sales outperformance. Management raised fiscal 2026 guidance meaningfully, with comparable store sales now expected to grow 6%-7% and EPS guidance increased to $7.50-$7.74, representing 13%-17% growth versus $6.61 in the prior year. The company repurchased $319M in shares during the quarter and maintains $4.13B in cash. We believe the 5% share price reaction is warranted as the company is firing on all cylinders, with shares trading at 30x the high end of full-year EPS guidance.
US equity markets edged higher intraday and oil prices declined as traders tracked the latest on the Iran war, while technology bellwether Nvidia's (NVDA) shares slipped despite reporting stronger-than-expected first-quarter revenue.The Dow Jones Industrial Average was up 0.5% at 50,256.6 after midday Thursday, while the Nasdaq Composite rose 0.3% to 26,345. The S&P 500 added 0.3% to 7,453.4. Most sectors were in the green, led by consumer discretionary, while consumer staples saw the biggest drop.West Texas Intermediate crude oil was down 2.4% at $95.92 a barrel intraday, while Brent fell 2.5% to $102.39.Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, has issued a directive that the country's uranium should remain within the country, Reuters reported Thursday, citing two senior Iranian sources.President Donald Trump reportedly said Thursday that the US will eventually recover Iran's stockpile of highly enriched uranium. Retrieving the uranium is a key objective of Trump's war on Iran.Trump told reporters on Wednesday that negotiations with Iran had reached the final stages, though he warned of further attacks if Tehran backed out, according to several media outlets.Iran is discussing setting up a permanent toll system with Oman to formalize its control of the Strait of Hormuz, Bloomberg News reported Thursday.Treasury yields were mixed intraday, with the two-year rate up 2.4 basis points at 4.09% and the 10-year yield rate little changed at 4.59%.Shares of Nvidia (NVDA) fell 1.2% intraday, among the worst performers on the Dow.The chipmaking giant late Wednesday reported fiscal first-quarter revenue above Wall Street's estimates as data center sales outperformed expectations amid an artificial intelligence boom.For the current quarter, Nvidia said it anticipates revenue of $91 billion, plus or minus 2%. The consensus indicated $87.29 billion."Nvidia has become so important that good is not enough," Saxo Bank said in a report. "Investors want proof that the cycle extends into 2027 and beyond, that margins can stay high, and that customers are not simply ordering ahead before the next chip transition."Walmart (WMT) shares were down 6.9%, the steepest decline on the Dow and second-biggest on the S&P 500. The retail giant issued a fiscal second-quarter earnings outlook below market estimates, while it reported better-than-expected revenue in the previous three-month period.Intuit's (INTU) stock plunged 20% intraday, the worst performer on the S&P 500. The financial technology platform late Wednesday reported better-than-expected fiscal third-quarter results and disclosed plans to reduce its workforce by about 17%.Deere's (DE) fiscal second-quarter results exceeded analysts' expectations, while the company on Thursday affirmed its soft full-year earnings outlook amid continued pressure in global agricultural markets. The stock was 4.6% lower intraday, among the worst performers on the S&P 500.Lifting interest rates may not be an appropriate response from the Federal Reserve to curb price pressures, Richmond Fed President Tom Barkin said in prepared remarks for an event in North Carolina."Raising rates to weaken demand doesn't address the root cause behind supply shock-driven inflation. It doesn't free up trade routes, reopen factories or melt ice," he said. "That said, I've been asking myself whether we've entered an era where supply shocks will become more frequent.""With inflation above our 2% target for over five years now, it's worth asking whether the cumulative impact of so many waves risks loosening the anchor."Fed officials at their April policy meeting flagged the possibility of higher interest rates if the Middle East conflict drags on and keeps inflation above the 2% goal, minutes from the meeting showed on Wednesday.Ross Stores (ROST), Take-Two Interactive Software (TTWO), and Workday (WDAY) are among companies scheduled to release their earnings after the markets close.Gold was up 0.2% at $4,545.90 per troy ounce, while silver rose 1.1% to $77.05 per ounce.
US equity markets were trending lower before the opening bell Thursday as traders monitor the latest developments in the US-Iran conflict and digest tech bellwether Nvidia's (NVDA) quarterly earnings.The S&P 500 fell 0.4% and the Dow Jones Industrial Average slipped 0.3% in premarket activity, while the Nasdaq was down 0.5%. The indexes finished the previous trading session higher, with the Nasdaq and S&P 500 snapping a three-day losing streak.Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Thursday that Tehran is reviewing the latest US proposal to end the war in the Middle East, CNBC reported, citing state-run agency Nour News.President Donald Trump told reporters on Wednesday that negotiations with Iran had reached the final stages, though he warned of further attacks if Tehran backs out, according to several media outlets. "We'll either have a deal or we're going to do some things that are a little bit nasty," Trump said, according to a Bloomberg News report. "But hopefully that won't happen."Earlier on Wednesday, Iran's Islamic Revolutionary Guard Corps reportedly said that it would retaliate beyond the Middle East if the US or Israel resumed their military attacks against the country.West Texas Intermediate crude oil slipped 0.2% to $98.01 a barrel before the open, while Brent decreased 0.6% to $104.42.Shares of Nvidia (NVDA) slipped 0.2% pre-bell after the chipmaking giant reported fiscal first-quarter revenue above Wall Street's estimates, as data center sales outperformed expectations amid an artificial intelligence boom. For the current quarter, Nvidia said it anticipates revenue of $91 billion, plus or minus 2%.Intuit's (INTU) stock dropped 14% after the financial technology platform reported better-than-expected fiscal third-quarter results and disclosed plans to reduce its workforce by about 17%. Urban Outfitters (URBN) declined 1.4% after its financial results.Federal Reserve officials flagged the possibility of higher interest rates if the Middle East conflict drags on and keeps inflation above the 2% goal, minutes from the central bank's April meeting showed on Wednesday.Meeting participants generally determined that elevated inflation, combined with uncertainty around the duration and impact of the Iran war, could justify holding rates for longer than previously anticipated. However, majority of Fed officials pointed out that "some policy firming would likely become appropriate if inflation were to continue to run persistently above 2%."Treasury yields were rising before the open, with the two-year rate gaining 6.6 basis points to 4.1% and the 10-year rate adding 5.1 basis points to 4.62%.Thursday's economic calendar has the housing starts and permits report for April at 8:30 am ET, along with the weekly jobless claims bulletin and the Philadelphia Fed manufacturing index for May. The S&P Global's (SPGI) flash purchasing managers' index for May is out at 9:45 am, followed by the Kansas City Fed manufacturing index for the same month at 11 am.Richmond Fed President Thomas Barkin is scheduled to speak at 12:20 pm.Walmart (WMT), Deere (DE), NetEase (NTES), Williams-Sonoma (WSM), Ralph Lauren (RL), Nio (NIO) and Advance Auto Parts (AAP) report their latest financial results before the bell, among others. Ross Stores (ROST), Take-Two Interactive Software (TTWO), Workday (WDAY), Zoom Communications (ZM) and Deckers Outdoor (DECK) release their earnings after the markets close.Gold was down 0.4% at $4,519 per troy ounce, while bitcoin fell 0.3% to $77,255.
The current macro backdrop is likely benefiting the off-price retail sector as increased value-seeking behavior among consumers has helped lift same-store sales growth expectations for the first quarter, Deutsche Bank said in a note on Friday.The brokerage remains constructive on discount retailers, which tend to grow during an economic slowdown. In addition, merchandising initiatives and store openings should help sustain sales momentum, according to the note."Sentiment towards off-price retail remains positive with elevated (first quarter 2026) SSS expectations," Deutsche Bank Analyst Krisztina Katai said. "This reflects tailwinds from stimulus in the US and increased value-seeking behavior, which combine with company-specific SSS initiatives and easier compares."US consumer sentiment declined to fresh lows in May amid cost pressures tied to the Middle East conflict, University of Michigan's preliminary survey showed earlier this month. A fragile ceasefire between Washington and Iran appears to be holding, though the two sides are yet to finalize a framework on a peace deal.The brokerage expects comparable sales to grow low teens for Ross Stores (ROST), between 7% and 8% for Burlington Stores (BURL) and 5% to 6% for TJX's (TJX) Marmaxx.Top-line strength and average unit retail gains position off-price retailers to absorb incremental freight pressures, but it is unclear whether the current momentum is driven by stimulus or other sustainable trends, Deutsche Bank said."That said, fears of a consumer slowdown in recent weeks have led to the group de-rating materially to start (the fiscal second quarter) -- which we believe creates a buying opportunity," Katai said.Ross Stores and TJX are "best positioned" to top estimates due to incremental transactions, Katai said. Deutsche Bank remains "sidelined" on Burlington Stores.Ross Stores, TJX and Burlington Stores are scheduled to release their first-quarter results later in May.Price: $213.22, Change: $-0.06, Percent Change: -0.03%
