Ross Stores Eyes 8.1% Growth After 6.7% Trailing Earnings Surprise
Ross Stores was identified as a high-ROE retail stock with a projected long-term earnings growth rate of 8.1% and a trailing four-quarter earnings surprise average of 6.7%. The off-price retailer, offering merchandise 20%-60% below department store prices, holds a Zacks Rank #2, underscoring its efficiency in converting equity into profit.
1. High-ROE Screening
Ross Stores was one of five companies selected for a high return-on-equity screening, posting a projected long-term earnings growth rate of 8.1% and an average trailing four-quarter earnings surprise of 6.7%. Its Zacks Rank #2 designation highlights strong profitability metrics relative to equity.
2. Off-Price Retail Strategy
The company operates off-price stores offering branded apparel and home goods at discounts of 20% to 60% below department store prices, targeting middle-income households and driving efficient conversion of shareholder equity into profit.