Ross Stores - AI Stock Analysis

Analysis generated September 8, 2025

Ross Stores, Inc. operates a chain of off-price retail apparel and home fashion stores. Known for its brand "Ross Dress for Less," the company attracts customers by offering designer and brand-name fashion and home goods at discount prices. Headquartered in Dublin, California, Ross Stores operates more than 1,800 locations across the United States, making it a significant player in the retail sector. Its primary competitors include other off-price retailers such as TJ Maxx and Marshalls, as well as traditional department stores and online retailers.

Fundamental Analysis

Ross Stores reported revenue of $5.53 billion for the last quarter. This is an increase of 10.92% from the previous quarter and 4.57% from the same quarter last year. These figures indicate that the company is experiencing solid growth in its top line, both on a quarterly and annual basis.

Net income for the last quarter was $508 million, marking a 6.00% increase compared to the previous quarter. However, there was a decline of 3.63% compared to the same quarter last year. This mixed result suggests some potential concerns, although the positive quarterly change is encouraging.

EBITDA for the last quarter was $542 million, reflecting a decrease of 29.52% from the previous quarter and a significant 34.52% decline from the same quarter last year. This steep decline could indicate operational challenges or increased expenses that need addressing.

The current Price to Earnings (P/E) ratio stands at 24, which is neither excessively high nor low. This generally implies that the stock is fairly valued compared to its industry peers, providing investors with a reasonable entry point given its moderate valuation.

Technical Analysis

The current stock price of Ross Stores is $151.87, representing a 4.58% increase from a month ago and a 1.82% increase from a year ago. This suggests a positive short-term and long-term trend.

The Simple Moving Average over 10 days (SMA10) is currently at 150.10, up from the previous SMA10 of 149.63. This indicates a potential upward trend in price movement. Additionally, the Relative Strength Index (RSI) is 48.8, reflecting a neutral condition that suggests neither overbought nor oversold market conditions.

Alternative Data Analysis

In terms of job postings, Ross Stores has 6,216 open positions, a decrease of 6% over the past few months. This could indicate efforts to streamline operations or cut costs, which might be concerning for a company aiming for growth.

Employee sentiment at Ross Stores is neutral, suggesting a stable but not necessarily positive work environment. Customer engagement metrics show that Ross Stores has 2.1 million visitors to its webpage, 610,000 Instagram followers, and 3,700 Twitter followers. These numbers have remained steady over the last few months, indicating no significant change in customer interest or engagement.

According to AltIndex's AI score, which predicts stock price movements based on various data points, Ross Stores has an AI score of 54, equating to a hold signal.

Conclusion and Recommendation

Ross Stores presents a mixed picture. On the fundamental side, the company shows positive revenue growth and an increasing net income on a quarterly basis, but there are concerns about the declining EBITDA. The stock's technical indicators show a mildly bullish trend, but the neutral RSI suggests potential volatility. Alternative data metrics reflect a stable but unexciting customer and employee engagement.

All considered, Ross Stores appears to be a fairly valued stock with moderate growth prospects. Given the combination of positive revenue trends, valuation, and stable alternative data metrics, this stock could be worthy of holding in a diversified portfolio. However, potential investors should remain cautious and monitor the company's operational performance closely.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.