Ross Stores Posts Strong Q3 Beat; These Analysts Raise Price Targets On 'Broad-Based' Growth

Author: Priya Nigam | November 21, 2025 12:13pm

Shares of Ross Stores Inc (NASDAQ:ROST) soared in early trading on Friday, after the company reported upbeat third-quarter earnings.

Here are some key analyst takeaways:

• JPMorgan analyst Matthew Boss reiterated an Overweight rating, while raising the price target from $188 to $200.
• Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating, while raising the price target from $160 to $175.
• BofA Securities analyst Lorraine Hutchinson reaffirmed a Buy rating, while lifting the price target from $175 to $200.

Check out other analyst stock ratings.

JPMorgan: Ross Stores reported earnings of $1.58 per share. It beat the consensus of $1.42 per share, with same-store-sales growth of 7%. That’s much higher than Street expectations of 4.5%, Boss said in a note.  Although gross margins contracted by 30 basis points (bps) year-on-year to 28.0%, the figure topped estimates of 27.2%, he added.

"Driving the sequential improvement, management cited a broad-based acceleration across all major merchandise categories, all regions, and all demographics," the analyst wrote. Management raised their same-store-sales growth outlook for the fourth quarter to 3%-4%, from their prior projection of 2%-3%, while guiding to earnings of $1.77-$1.85 per share, he further stated.

Telsey Advisory Group: Ross Stores' total sales grew 10.4% year-on-year to $5.60 billion, topping consensus of $5.42 billion, Telsey said. Comps growth of 7% came in higher than the 1% recorded last year and the guidance range of 2%-3%, he added.

Management raised their earnings outlook for 2025 to $6.38-$6.46 per share, from their prior projection of $6.08-$6.21 per share, the analyst stated. "However, the company's core lower-income customer continues to experience increased pressure from recent policy shifts that have weighed on consumer confidence and spending and an ever changing macro landscape makes visibility to consistent improvement challenging," he further wrote.

BofA Securities: Ross Stores benefited in the quarter from its improved assortment and store investments, Hutchinson said.

"We are encouraged by the continued sequential improvement in the ladies business, which is benefitting the most from ROST’s F24 gross margin investment to elevate its branded penetration," the analyst wrote. The company's comps growth and earnings guidance for the fourth quarter came in better than expected, she added.

ROST Price Action: Shares of Ross Stores had risen by 7.50% to $172.54 at the time of publication on Friday.

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