{"id":120234,"date":"2026-08-25T11:34:20","date_gmt":"2026-08-25T11:34:20","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/120234\/"},"modified":"2026-08-25T11:34:20","modified_gmt":"2026-08-25T11:34:20","slug":"ubs-believes-ross-stores-8-earnings-growth-outlook-supports-27x-p-e-multiple-but-says-optimism-may-already-be-priced-in-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/120234\/","title":{"rendered":"UBS Believes Ross Stores\u2019 8% Earnings Growth Outlook Supports 27x P\/E Multiple \u2013 But Says Optimism May Already Be Priced In"},"content":{"rendered":"\n

Ross raised its full-year 2026 earnings guidance to between $8.61 and $8.77 per share. <\/p>\n

Citi called the quarter “outstanding” and said it sees further upside to 2026 earnings estimates. <\/p>\n

Barclays said Ross’ short-term execution advantage over competitors remains “wide.” <\/p>\n

Shares of Ross Stores (ROST) were in the spotlight on Friday, following positive Wall Street action after a blowout second quarter that included a 10% growth in comparable-store sales. <\/p>\n

At the time of writing, ROST shares were up 4%. <\/p>\n

See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox<\/a> <\/p>\n

UBS Sees 8% Earnings CAGR <\/p>\n

UBS expects Ross Stores to deliver an 8% compound annual growth rate (CAGR) in earnings over the next five years, supporting a roughly 27X price-to-earnings multiple. However, UBS cautioned that the stock’s current price already appears to reflect much of that optimism. <\/p>\n

UBS raised Ross’ price target to $239 from $232 and kept a ‘Neutral’ rating, according to The Fly. The stock is already trading above the updated target. <\/p>\n

Ross Posts Second Straight Double-Digit Comparable Store Sales Growth <\/p>\n

Second-quarter (Q2) sales rose 13% to $6.3 billion, while comparable-store sales jumped 10%, the second consecutive double-digit quarter. Earnings came in at $2.66 per share. Both sales and earnings beat Wall Street’s estimates, according to Fiscal.ai data. <\/p>\n

Ross said<\/a> customer traffic drove the comparable-sales increase, with the retailer attracting new and returning customers, and existing shoppers visiting more frequently and spending more. Home goods and cosmetics were the strongest categories. <\/p>\n

The company expects comparable sales to rise 6% to 7% in the third quarter and 4% to 5% in the fourth quarter. The retailer also raised its full-year 2026 earnings guidance to between $8.61 and $8.77 per share. <\/p>\n

Citi Sees Further Upside To Ross’ Earnings Estimates <\/p>\n

Citi called the quarter “outstanding” and said it sees further upside to 2026 earnings estimates. Truist raised its price target on Ross to $310 from $290 and maintained a ‘Buy’ rating. The firm said trends remained strong across merchandise categories and customer demographics. <\/p>\n

Barclays lifted its target to $298 from $260, kept an ‘Overweight’ rating, and added that comparable-store sales growth topped the 7.6% consensus estimate. It added that Ross’ short-term execution advantage over competitors remains “wide.” <\/p>\n

Retail Flags $250 As Key Resistance <\/p>\n

Retail sentiment surrounding ROST on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid a 450% increase in message volumes. <\/p>\n","protected":false},"excerpt":{"rendered":"Ross raised its full-year 2026 earnings guidance to between $8.61 and $8.77 per share. Citi called the quarter…\n","protected":false},"author":2,"featured_media":120235,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[5070,19003,24350,2903,58627,223],"class_list":["post-120234","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-citi","tag-comparable-sales","tag-comparable-store-sales","tag-earnings-estimates","tag-ross","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117155939430937942","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/120234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=120234"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/120234\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/120235"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=120234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=120234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=120234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}