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Ross Stores Surges 8% as Q3 Earnings Beat Expectations

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 11/23/2025, 11:17 am ET 11/23/2025, 11:17 am ET | 5 min 5 min read
Ross Stores Surges 8% as Q3 Earnings Beat Expectations Thumbnail

Ross Stores Inc. stocks have been trading up by 8.22 percent amid outstanding sales performance and strong customer demand.

Consumer Discretionary industry expert:

Analyst sentiment – positive

Ross Stores Inc. (ROST) maintains a solid market position with robust financials, as evidenced by a profit margin of 9.6% and a gross margin of 27.6%. The company reports revenues of $21.1 billion, showcasing notable growth of 10.94% over five years. Valuation metrics such as a P/E ratio of 27.62 and a price-to-cash-flow of 21.2 reflect investor confidence, supported by healthy financial strength with a total debt-to-equity ratio of 0.88. Management effectiveness is highlighted by a return on equity of 36.65% and a return on capital of 15.67%. ROST’s performance trajectory is on an upward trend due to its strategic focus on efficient cost management and market penetration.

Technical analysis reveals a bullish price trend for ROST. The strong weekly bullish movement is evidenced by a pattern of higher highs and higher lows, closing at $173.70 from an opening of $159.41. The price action in recent 5-minute candles showed consolidation between $164 and $174. The volume surge accompanying the price breakout above resistance signals strong buying momentum. An actionable trading strategy would involve buying on pullbacks to the $164 support level, with a target at the recent high of $174, aligning with increased institutional interest and elevated trading volumes.

Recent news showcases ROST’s strong Q3 2025 performance, with EPS beating estimates at $1.58 and net income at $512 million, indicating robust operational execution. The 10% sales surge to $5.6 billion and upward revision of full-year guidance suggest a promising retail season outlook. The company’s proactive stock repurchase strategy further bolsters shareholder value. Comparatively, ROST’s performance outpaces Consumer Discretionary and Retail benchmarks, with strong same-store sales growth of 7%. Price targets adjusted by major banks to as high as $200 signal investor optimism. Support is at $164, with resistance targets upward to the revised $183-$200 range. Overall sentiment is positive, reflecting strong market positioning and financial health.

  • Same-store sales surged 7%, highlighting Ross’ successful merchandise strategy and effective marketing campaigns, coupled with a robust back-to-school performance.

  • Analysts are bullish, with BofA, Citi, and JPMorgan increasing Ross’ price targets, collectively boosting investor confidence in sustained growth.

  • Price target increases across major financial institutions signal broader market optimism, with targets now ranging from $182 to $200.

Candlestick Chart

Weekly Update Nov 17 – Nov 21, 2025: On Sunday, November 23, 2025 Ross Stores Inc. stock [NASDAQ: ROST] is trending up by 8.22%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Ross Stores delivered a solid performance in Q3 2025, compelling analysts and shareholders alike. Sales rose to $5.6 billion, a 10% lift from the prior year, while earnings per share (EPS) grew to $1.58, surpassing the consensus forecast of $1.42. Profit margins remained robust, with an operating margin of 11.6%, bolstered by tight cost controls and a strategic focus on offering value-centered merchandise. The company expectedly adjusted its full-year earnings outlook upwards, setting a new benchmark between $6.38 and $6.46 EPS, compared to the earlier guidance of $6.08 to $6.21. Noteworthy was Ross’ continuation of its $2.1 billion stock repurchase plan, indicating a strong balance sheet and ongoing shareholder value creation.

From the pricing dimensions, Ross experienced a strong upward trajectory as evidenced by multi-day trading data. After an initial steadiness at the beginning of the week, the stock jumped significantly, recording a peak of $174 before closing at $173.7, reflecting investor enthusiasm. In ratio terms, a PE ratio of 27.62 indicates favorable valuation against peers, and a strong quick ratio of 0.9 reaffirms the firm’s liquidity leverage. This financial strength is mirrored in their maintained buy ratings from leading institutions like Barclays and Evercore ISI.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

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In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”