TLDR
- ROST hit an all-time high of $237.44, up ~2.65% on the day
- Q1 EPS came in at $2.02, beating the $1.71 forecast; revenue hit $6B vs. $5.6B expected
- Comparable sales rose 17%, driven by stronger store traffic
- Truist raised its price target to $290; UBS and Bernstein also lifted their targets
- Jim Cramer praised CEO Jim Conroy and called the stock “absolutely worth owning”
Ross Stores (ROST) hit an all-time high of $237.44 on Wednesday, up about 2.65%, as investor enthusiasm continues to build following a strong first quarter and a wave of analyst upgrades.
The stock has climbed nearly 78% over the past year, rising from a 52-week low of $124.49. It now sits within 1% of that fresh record.
The rally follows a first quarter that caught Wall Street off guard. Ross posted EPS of $2.02, well above the $1.71 consensus. Revenue came in at $6 billion, topping the $5.6 billion estimate.
Comparable sales rose 17%, fueled by higher store traffic — not just bigger basket sizes. That’s the kind of growth that turns heads.
Analyst Upgrades Roll In
Truist Securities moved its price target from $270 to $290, keeping a Buy rating. The firm specifically called out that 17% comp sales increase as the driver.
Bernstein SocGen Group lifted its target from $200 to $230, acknowledging results that beat already-elevated expectations.
UBS raised its target to $232 from $227, keeping a Neutral rating. The bank projects a 7.5% five-year EPS compound annual growth rate and said it expects Ross to outgrow its department store peers.
Despite trading at 29 times this year’s earnings estimates — up from 23x when CEO Jim Conroy took over — some on Wall Street aren’t flinching. For context, TJX currently trades at around 31x earnings.
InvestingPro flags the stock as trading above its Fair Value, placing it among the more expensive names in the market right now. The platform gives Ross a “GREAT” financial health score.
Cramer Weighs In
On Tuesday’s episode of Mad Money, Jim Cramer gave Conroy a direct shoutout, saying the CEO is “doing an incredible job at Ross Stores.”
Cramer outlined a reinforcing cycle: better marketing brings in customers, better merchandising converts them, and stronger sales fund more investment in both. He called the off-price space “one of the few areas of retail that’s really working.”
He added that while TJX remains his long-term favorite, Ross is “absolutely worth owning.”
Ross currently operates just under 2,300 stores across its Ross Dress for Less and dd’s DISCOUNTS banners. Conroy has stated he believes the chain can eventually reach 3,600 locations — a potential expansion of more than 50%.
Cramer acknowledged the valuation is “a bit rich” on an absolute basis but argued it looks more reasonable relative to peers, and that continued earnings beats could make it look cheaper in hindsight.
The stock’s market cap now stands at around $76 billion.
Truist’s $290 price target remains the highest on the Street following this latest round of revisions, sitting roughly 22% above Wednesday’s all-time high print.
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