Ross Stores, Inc. ROST
Verdict: Strong sell. Fair value $126 against a price of $189 on 6 Jan 2026, 34% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Industry tailwinds with growing market.
The case against: Intense competitive pressure could compress margins. The OCF / Net Income ratio decreased from a very strong 1.34 in 2024 to 1.13 in 2025. While still a....
Main risks
- Revenue growth decelerated to 3.7% in the latest fiscal year from 9.0% in the prior year, suggesting a potential slowdown.
- The stock is trading near its 52-week high, and the mean analyst price target suggests a -1.4% downside, indicating a full valuation with limited near-term upside.
- Annual Free Cash Flow showed a decline in the most recent fiscal year ($1.64B vs $1.75B prior year), which warrants monitoring despite strong TTM figures.
- Intense competitive environment
- Valuation prices in optimistic scenario (limited margin for error)