Ross Stores (ROST) Stock Forecast & Price Target

Ross Stores has demonstrated a positive sales trajectory, with comparable store sales growth of approximately 3.0%, surpassing the Street’s expectation of 2.6% and aligning with the company's guidance range. The company has successfully leveraged selling, general, and administrative expenses, showing improvement for four consecutive quarters, which contributes positively to overall financial health. Furthermore, the company is increasing capital expenditures to $855 million from $720 million, indicating confidence in future growth and the expansion of its operations, which bodes well for long-term profitability.

Ross Stores has issued FY25E EPS guidance of $5.95-6.55, which is below the Street expectation of $6.67, indicating the widest delta since FY20. Additionally, the company's total sales for the fourth quarter experienced a decline of 1.8% year-over-year, falling short of market expectations and reflecting weakening top-line trends exacerbated by macroeconomic factors. Furthermore, net interest income is projected to decrease to approximately $35 million from $46 million last year, contributing to an overall negative outlook on the firm's financial performance amid challenging operating conditions.