ROST

A comparison of Dollar General (DG) and Ross Stores (ROST) in the discount retail sector reveals that Dollar General presents a better value opportunity. DG holds a Zacks Rank #1 (Strong Buy) with improving earnings outlook and a Value grade of B, while ROST has a Zacks Rank #2 (Buy) with a Value grade of D. DG's forward P/E of 17.52 and P/B ratio of 3.3 are significantly more attractive than ROST's forward P/E of 26.98 and P/B ratio of 11.21.

Ross Stores stock declined 1.29% to $234.18 while the broader market gained, underperforming the S&P 500's 0.58% rise. Despite the daily decline, the company is expected to report strong earnings growth of 15.19% EPS and 10.68% revenue growth. The stock holds a Zacks Rank #2 (Buy) rating, though it trades at a premium valuation with a Forward P/E of 27.05 compared to its industry average of 21.73.

Dollar Tree's multi-price strategy drove Q2 FY26 comparable sales growth of 3.7%, with multi-price penetration reaching 17% of total sales. The company, along with Ross Stores, Dollar General, and Burlington Stores, is leveraging value-oriented retail models to attract customers across income levels. However, merchandise inflation and freight costs remain headwinds.

Zacks highlights five non-tech Nasdaq stocks with Zacks Rank #1 (Strong Buy) ratings positioned for Q4 gains. Ross Stores benefits from strong sales momentum and store expansion; Roku capitalizes on the shift from linear TV to streaming advertising; APA Corp offers favorable capital efficiency and long-term growth; Corcept Therapeutics sees strong demand for Korlym and new product launches; Halozyme benefits from collaboration royalties and milestone payments.

Despite the Nasdaq's tech-heavy composition, five non-tech Nasdaq-listed stocks with Zacks Rank #1 ratings are positioned for strong growth. Ross Stores plans 115 store openings with 13% Q2 sales growth, Roku's advertising revenue climbed 24.8%, APA Corp benefits from cost savings and long-term growth projects, Corcept Therapeutics sees strong drug demand with recent FDA approvals, and Halozyme generates royalties from pharma collaborations.

Ross Stores (ROST) closed at $234.83, up 1.85%, outperforming the S&P 500. The discount retailer has a Zacks Rank #1 (Strong Buy) rating with projected earnings growth of 15.19% and revenue growth of 10.68% for the upcoming quarter.

Full-year estimates forecast 32.68% earnings growth and 12.76% revenue growth. However, the stock trades at a premium with a Forward P/E of 26.28 compared to the industry average of 22.09.

The article explains the Zacks Rank, a proprietary stock-rating system that uses earnings estimate revisions to identify investment opportunities. It demonstrates how retail investors can benefit from institutional investor trends by tracking upward earnings revisions. Ross Stores (ROST) is highlighted as a recent Strong Buy addition with positive earnings momentum and outperformance versus the S&P 500.

Ross Stores completed its fiscal 2026 expansion plan by opening 51 new stores across 17 states in September and October 2026, bringing total new locations for the year to 115. The company now operates approximately 2,377 stores and entered Massachusetts for the first time. With strong consumer demand for discounted merchandise and solid financial performance, management targets a long-term goal of 3,600 total locations (2,900 Ross Dress for Less and 700 dd's DISCOUNTS).

Ross Stores stock declined 1.24% to $222.41 on October 9, 2026, underperforming the broader market gains. Despite the daily decline, the company maintains a Zacks Rank #2 (Buy) rating with positive earnings expectations, including a projected 15.19% EPS increase and 10.68% revenue growth for the upcoming quarter.

The Retail-Discount Stores industry is positioned for growth as value-seeking expands across all income groups amid persistent inflation and elevated borrowing costs. Four prominent discount retailers—Ross Stores, Target, Dollar General, and Dollar Tree—are strengthening digital capabilities, improving store experiences, and leveraging AI for operational efficiency. The industry ranks #17 among 250+ Zacks industries with positive earnings outlook, though valuations are elevated at 27.53x forward P/E compared to the S&P 500's 19.99x.

The Retail-Discount Stores industry is well-positioned with a Zacks Industry Rank #17 (top 7%), driven by expanding value-seeking behavior across all income groups and strengthened digital/AI capabilities. Four prominent players—Dollar General, Ross Stores, Target, and Dollar Tree—are capitalizing on this trend through improved store experiences, operational efficiency, and omnichannel integration, though margin pressures from tariffs and freight costs remain a key concern.

Ross Stores (ROST), an off-price retailer of apparel and home accessories, has been highlighted as a stock to watch with a Zacks Rank #2 (Buy) and VGM Score of B. Five analysts revised earnings estimates higher in the last 60 days, with the Zacks Consensus Estimate increasing to $8.77 per share for fiscal 2027. The stock shows strong momentum with a B Momentum Style Score and an average earnings surprise of +11.2%.

A comparison of Dollar General (DG) and Ross Stores (ROST), both holding Zacks Rank #1 (Strong Buy) ratings. While both stocks show positive earnings outlooks, Dollar General emerges as the superior value option based on valuation metrics. DG has a lower forward P/E ratio of 15.53 versus ROST's 25.56, a better PEG ratio of 1.63 versus 1.75, and a significantly lower P/B ratio of 2.93 versus 10.62, earning DG a Value grade of B compared to ROST's D grade.

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RTX outperforms aerospace-defense industry driven by commercial aerospace recovery and strong defense demand. Marvell significantly outperforms semiconductors sector on AI-driven data center strength, though customer concentration poses risks.

Air T shows strong performance in air freight with diversified aviation platform. GSI underperforms storage devices industry facing commercialization and procurement challenges. Additional coverage includes Welltower, UBS, Ross Stores, and other companies across various sectors.

The article explains how Zacks Style Scores work alongside the Zacks Rank to help investors identify stocks with the best probability of outperformance. It breaks down four scoring categories (Value, Growth, Momentum, and VGM) and recommends focusing on stocks with #1 or #2 Zacks Rank combined with A or B Style Scores. Ross Stores is highlighted as a #2 Buy with strong growth prospects.

Ross Stores is pursuing store expansion and merchandise improvements to drive growth in the off-price retail sector. While expansion increases geographic reach and sales potential, it comes with higher occupancy, labor, and capital costs.

New stores require time to reach mature productivity levels. The company faces competition and consumer spending fluctuations but maintains a Zacks Rank #2 (Buy) rating with positive earnings growth expectations.

Ross Stores stock declined 1.13% on September 29, 2026, underperforming the S&P 500's 0.17% loss. Despite the daily dip, ROST has gained 3.74% over the past month, outperforming its sector.

The company is expected to report Q3 EPS of $1.82 (up 15.19% YoY) and annual earnings of $8.77 per share (up 32.68% YoY). ROST holds a Zacks Rank #2 (Buy) rating with a Forward P/E of 27.03, trading at a premium to its industry average.

Five stocks have been added to the Zacks Rank #1 (Strong Buy) list, driven by increasing earnings estimates over the last 60 days. The stocks span energy, manufacturing, entertainment, insurance, and retail sectors, with earnings estimate increases ranging from 10% to 15.4%. The market is focused on upcoming CPI and PPI inflation reports and the start of Q3 earnings season.

Amid market volatility driven by rising Treasury yields and oil prices, five stocks with strong cash flow, high return on equity (ROE), and attractive valuations are identified as solid investment opportunities. Micron Technology leads with 32.6% expected long-term earnings growth, followed by Banco Bilbao at 15.7%. All five stocks meet screening criteria for cash flow above $1B, superior ROE, and attractive valuations.

Best Buy is expanding its advertising and marketplace businesses to create additional profit streams and improve margins. Best Buy Ads targets 10% collections growth in fiscal 2027 on $900 million in prior-year collections, while Marketplace GMV outlook was raised to $1.3 billion after strong Q2 results. These initiatives contributed to a 60 basis point increase in domestic gross margin to 24%, and management raised fiscal 2027 adjusted operating income guidance to 4.4-4.5%.