What Happened?
Shares of off-price retail company Ross Stores (NASDAQ:ROST) jumped 3.1% in the afternoon session after an analyst at Wells Fargo raised the company's price target to $180 from $175, while keeping an Overweight rating on the shares. The analyst, Ike Boruchow, noted that the stock was one of the firm's favorite long ideas. Wells Fargo also mentioned it was raising its estimates and confidence levels as it saw a fundamental improvement in the company's story. This positive view from the analyst helped send the stock to a new 52-week high during the session.
After the initial pop the shares cooled down to $161.49, up 3% from previous close.
Is now the time to buy Ross Stores? Access our full analysis report here.
What Is The Market Telling Us
Ross Stores’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 4.2% on the news that the company announced it completed its fiscal 2025 store expansion with 40 new locations, and Citigroup raised its price target on the stock. The new openings consisted of 36 Ross Dress for Less and four dd's DISCOUNTS stores. This move completed the company's plan to add 90 new locations during the year, bringing its total store count to 2,273. The expansion was viewed favorably by investors, partly because the company had a history of strong performance, with same-store sales growth averaging 3.1% over the previous two years. Adding to the positive news, an analyst at Citigroup increased the price target for Ross Stores to $171 from $146 and kept a Buy rating on the shares.
Ross Stores is up 5.8% since the beginning of the year, and at $161.49 per share, has set a new 52-week high. Investors who bought $1,000 worth of Ross Stores’s shares 5 years ago would now be looking at an investment worth $1,766.
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