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How Analysts View Ross Stores Stock after 3Q Results

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YTD movement

Ross Stores (ROST) stock is up 10.9% on a YTD (year-to-date) basis as of November 20. The off-price retailer’s stock rose about 10.0% on November 17 in reaction to its results for fiscal 3Q17, which ended on October 28, 2017. Ross Stores announced its fiscal 3Q17 results after the close of financial markets on November 16. The company impressed investors by exceeding analysts’ sales and earnings expectations.

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Revision to target price

As of November 20, Ross Stores was rated a “buy” by 17 out of 25 (or 68%) analysts covering the stock. Eight analysts had a “hold” rating. None of the analysts currently has a “sell” recommendation for Ross Stores stock.

Many analysts revised their target price for Ross Stores stock after its fiscal 3Q17 results. On November 17, both JP Morgan and Instinet raised their target price to $80 from $74. Morgan Stanley increased its target price to $77 from $70. Jefferies raised its target price to $66 from $63. RBC Capital increased its target price to $70 from $62 and Citigroup increased its target price to $72 from $67. Suntrust Robinson raised its target price to $80 from $75. BMO Capital now has a price target of $71 for Ross Stores stock, up from $65. Cowen and Company raised its target price to $78 from $74. Telsey Advisory Group raised its target price to $75 from $70.

As of November 20, the average 12-month target price for Ross Stores stock was $75.43. This price estimate reflects an upside potential of 3.7%.

As of November 20, the company’s peers TJX Companies (TJX) and Burlington Stores (BURL) were up -5.2% and 25.7%, respectively, on a YTD basis. Ross Stores lags the S&P 500 Index, which has risen 15.3% since the start of 2017.

Series overview

In this series on Ross Stores, we’ll take a closer look at the company’s fiscal 3Q17 earnings, sales, and margins. We’ll also look at the valuation of the company in the concluding part of this series.

Let’s begin with a discussion on Ross Stores’ earnings in the next part of this series.

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