Analyst Optimism Surges for Ross Stores Ahead of Earnings Report

Wall Street analysts are demonstrating growing confidence in discount retailer Ross Stores, with two major financial institutions boosting their price targets for the company's shares just days before its upcoming quarterly earnings release. This coordinated show of support suggests market experts anticipate strong performance from the off-price retail chain.

The recent bullish sentiment emerged when both Goldman Sachs and TD Cowen elevated their projections for Ross Stores. On Wednesday, Goldman Sachs reinforced its "Buy" recommendation while increasing its price target from $175 to $181 per share. This move followed TD Cowen's similar adjustment on Monday, when the firm raised its target from $170 to $174 while maintaining its positive rating on the stock.

Market response to these upgraded assessments has been notably positive. Ross Stores shares are currently trading at approximately $140.50, reflecting a substantial 5 percent gain over the past month. The stock's position above its key moving averages indicates sustained buyer interest and technical strength.

Should investors sell immediately? Or is it worth buying Ross Stores?

Third Quarter Results Approach

Attention now turns to November 20, when Ross Stores will disclose financial results for its third quarter of fiscal 2025. While research firm Zacks projects earnings per share of $1.39, slightly below the $1.48 reported during the same period last year, the broader analyst community remains optimistic about the company's prospects. The average price target among market watchers stands at $163.53, suggesting potential upside from current trading levels.

Beyond immediate quarterly performance, Ross Stores has been implementing strategic initiatives to support long-term expansion. The company has launched 90 new store locations during the current fiscal year and successfully managed a transition in its chief financial officer position during October. These developments signal the retailer's commitment to growth despite ongoing challenges in the retail sector.

The upcoming earnings release will reveal whether Ross Stores can meet elevated market expectations. The results will provide significant insights not only for shareholders but for the broader retail industry, indicating how discount retailers are navigating the current economic environment.