Ross Stores shares rise after stronger profit outlook
Shares of value retailer Ross Stores ROST.O were up 8.6% at $249 premarket.
The company raised its annual EPS forecast to a range of $8.61 to $8.77, up from $7.50 to $7.74, after beating second-quarter revenue and adjusted profit estimates.
Ross Stores sees third- and fourth-quarter comparable sales growth above analysts' expectations.
"We believe the most important takeaway from Q2 earnings was not simply the convincing beat, but growing evidence that ROST is pulling away from the pack" - Barclays.
At least nine brokerages raised price targets following the results, according to LSEG-compiled data.
ROST recently traded at 27 times expected earnings, above its five-year average of 22, suggesting the stock might be overvalued, per LSEG-compiled data.
The average rating of 21 analysts is "buy"; their median price target is $270 - LSEG-compiled data.
The stock has gained about 27.1% year to date, outpacing the 12.2% rise in the Nasdaq .IXIC.
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