High ROE Stocks Recommended Amid Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy ROST?
Source: NASDAQ.COM
- Market Volatility Context: This week, the markets experienced significant fluctuations due to rising tensions between the U.S. and Iran and concerns about AI's impact, with GDP growth at only 1.4%, well below the expected 2.5%, leading to investor anxiety.
- Tariff Cancellation Impact: The U.S. Supreme Court's annulment of Trump's tariffs sparked a market rebound; however, concerns over NVIDIA's deal with OpenAI dampened the momentum, reflecting ongoing uncertainty in the market outlook.
- High ROE Stock Picks: Stocks such as Ross Stores, Globe Life, Banco Bilbao, Zoetis, and TE Connectivity are highlighted for their high ROE, with long-term earnings growth expectations of 8.1%, 17.1%, 9.3%, and 12%, indicating strong profitability and financial health in their respective sectors.
- Importance of ROE: ROE serves as a critical metric for assessing a company's profitability, enabling investors to identify firms that effectively deploy capital to generate returns for shareholders, which is particularly vital in the current market climate.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ROST?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ROST
Wall Street analysts forecast ROST stock price to fall
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 212.150
Low
142.00
Averages
198.93
High
224.00
Current: 212.150
Low
142.00
Averages
198.93
High
224.00
About ROST
Ross Stores, Inc. is engaged in operating two brands of off-price retail apparel and home fashion stores-Ross Dress for Less (Ross) and dds DISCOUNTS. Ross is the off-price apparel and home fashion chain in the United States, with approximately 1,831 locations in 43 states, the District of Columbia, and Guam. Ross offers in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross target customers are primarily from middle-income households. It also operates approximately 355 dds DISCOUNTS stores in 22 states. dds DISCOUNTS features more moderately-priced in- season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. It operates a total of approximately 2,186 stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ross Stores Plans to Open 110 New Locations by 2026
- Expansion Plan Launch: Ross Stores announced a plan to add approximately 110 new locations in fiscal 2026, comprising 85 Ross Dress for Less and 25 dd's DISCOUNTS, indicating a 5% unit growth rate that reflects the company's proactive response to market demand.
- New Store Openings: In February and March, Ross Stores opened 17 new stores nationwide, including 13 Ross and 4 dd's DISCOUNTS, further solidifying its market presence in the Mountain, Midwest, and Northeast regions.
- Community Contributions: In celebration of each new store opening, the company donated to local Boys & Girls Clubs or First Book, demonstrating Ross Stores' long-standing commitment to supporting underprivileged youth while enhancing its brand influence within communities.
- Confidence in Long-Term Growth: Executives expressed confidence in achieving a future target of 2,900 Ross and 700 dd's DISCOUNTS locations, signaling ongoing market expansion and brand strengthening efforts.
See More
Ross Stores Exceeds Q4 Expectations with Strong Growth
- Significant Sales Growth: Ross Stores reported fourth-quarter sales of $6.6 billion, reflecting a 12% year-over-year increase, indicating strong market demand and a successful holiday shopping season, thereby enhancing the company's competitive position in retail.
- Outstanding Comparable Sales: The company's comparable store sales rose by 9%, a metric that excludes the impact of new and closed stores, showcasing Ross Stores' operational efficiency and customer appeal at existing locations, further solidifying its market standing.
- Earnings Exceed Expectations: With earnings per share reaching $2.00, significantly above the company's guidance range of $1.77 to $1.85, this performance highlights Ross Stores' success in cost management and sales growth, boosting investor confidence.
- Optimistic Future Outlook: The company projects a 7% to 8% increase in comparable store sales for the current quarter, and while its full-year growth forecast is more conservative at 3% to 4%, it still demonstrates Ross Stores' potential to maintain growth amid economic challenges.
See More
Investment Analysis of Walmart and Ross Stores
- Walmart Stock Performance: Walmart (NASDAQ: WMT) has seen its shares rise approximately 190% over the past five years, and while it is considered a quality long-term investment, its elevated valuation presents inherent risks that investors should consider.
- Ross Stores Exceeds Expectations: Ross Stores (NASDAQ: ROST) reported holiday season sales of $6.6 billion, a 12% year-over-year increase, with comparable store sales rising by 9%, indicating strong market performance and consumer demand.
- Future Growth Projections: Ross Stores anticipates comparable store sales growth of 7% to 8% for the current quarter, although its full-year growth outlook is more modest at 3% to 4%, reflecting resilience amid economic challenges.
- Investment Value Comparison: With a price-to-earnings ratio of 33, Ross Stores is more attractively valued compared to Walmart's 45, suggesting that while Walmart offers diverse shopping options, Ross may appeal more to budget-conscious consumers in the current economic climate.
See More
Ross Stores Opens 17 New Locations Nationwide
- Expansion Plan Launch: Ross Stores announced the opening of 17 new stores nationwide during February and March, including 13 Ross Dress for Less and four dd's DISCOUNTS, marking the first wave of its fiscal 2026 expansion plan to add approximately 110 new stores, achieving a total unit growth of 5%.
- Market Coverage Enhancement: The new stores span 11 states, particularly expanding Ross Dress for Less in the Mountain, Midwest, and Northeast regions, while also increasing dd's locations in core markets of California and Texas, and opening its first store in Utah, thereby strengthening its presence in key markets.
- Historical Growth Review: Since opening its first department store in California in 1950, Ross Stores has undergone three distinct phases of growth, from slow growth from 1950 to 1981, to hyper-growth following its 1982 off-price pivot and 1985 IPO, and then to disciplined, compounding growth from the late 1990s, now boasting 2,270 locations.
- Stock Market Performance Analysis: Although Ross Stores' shares fell 0.6% in premarket trading on Monday, the stock has risen over 50% in the past 52 weeks, reflecting market confidence in its future growth potential, especially following strong quarterly results and upbeat guidance.
See More
Goldman Sachs Lists Must-Buy Stocks Amid Market Fears
- Goldman Sachs Recommendations: Goldman Sachs recently highlighted stocks including Nvidia, Ross Stores, Viking Holdings, Once Upon a Farm, and Dutch Bros as must-buys amid rising market fears, reflecting strong confidence in these companies.
- Dutch Bros. Growth Potential: Analyst Christine Cho upgraded Dutch Bros. from neutral to buy, noting its robust growth potential in the U.S. restaurant sector, particularly driven by solid same-store sales growth and strong unit economics supporting mid-teens store growth.
- Once Upon a Farm Brand Strength: Analyst Leah Jordan initiated coverage on Once Upon a Farm with a buy rating, emphasizing its strong brand power and defensible market position, while the company is well-positioned within the
See More
Burlington Stores' Successful Year Expected to Boost Stock Performance: What's Ahead?
- Santa's Shopping Spree: Santa has been spotted doing extensive shopping at Burlington, suggesting a festive preparation for the holiday season.
- Burlington's Appeal: The store's variety and discounts likely make it a popular choice for holiday shoppers looking for gifts.
- Holiday Spirit: The image of Santa shopping reflects the joyful and giving spirit associated with the Christmas season.
- Community Engagement: This event may encourage local community members to visit Burlington for their holiday shopping needs.
See More
Ross Stores Plans to Open 110 New Locations by 2026
- Expansion Plan Launch: Ross Stores announced a plan to add approximately 110 new locations in fiscal 2026, comprising 85 Ross Dress for Less and 25 dd's DISCOUNTS, indicating a 5% unit growth rate that reflects the company's proactive response to market demand.
- New Store Openings: In February and March, Ross Stores opened 17 new stores nationwide, including 13 Ross and 4 dd's DISCOUNTS, further solidifying its market presence in the Mountain, Midwest, and Northeast regions.
- Community Contributions: In celebration of each new store opening, the company donated to local Boys & Girls Clubs or First Book, demonstrating Ross Stores' long-standing commitment to supporting underprivileged youth while enhancing its brand influence within communities.
- Confidence in Long-Term Growth: Executives expressed confidence in achieving a future target of 2,900 Ross and 700 dd's DISCOUNTS locations, signaling ongoing market expansion and brand strengthening efforts.
See More
Ross Stores Exceeds Q4 Expectations with Strong Growth
- Significant Sales Growth: Ross Stores reported fourth-quarter sales of $6.6 billion, reflecting a 12% year-over-year increase, indicating strong market demand and a successful holiday shopping season, thereby enhancing the company's competitive position in retail.
- Outstanding Comparable Sales: The company's comparable store sales rose by 9%, a metric that excludes the impact of new and closed stores, showcasing Ross Stores' operational efficiency and customer appeal at existing locations, further solidifying its market standing.
- Earnings Exceed Expectations: With earnings per share reaching $2.00, significantly above the company's guidance range of $1.77 to $1.85, this performance highlights Ross Stores' success in cost management and sales growth, boosting investor confidence.
- Optimistic Future Outlook: The company projects a 7% to 8% increase in comparable store sales for the current quarter, and while its full-year growth forecast is more conservative at 3% to 4%, it still demonstrates Ross Stores' potential to maintain growth amid economic challenges.
See More
Investment Analysis of Walmart and Ross Stores
- Walmart Stock Performance: Walmart (NASDAQ: WMT) has seen its shares rise approximately 190% over the past five years, and while it is considered a quality long-term investment, its elevated valuation presents inherent risks that investors should consider.
- Ross Stores Exceeds Expectations: Ross Stores (NASDAQ: ROST) reported holiday season sales of $6.6 billion, a 12% year-over-year increase, with comparable store sales rising by 9%, indicating strong market performance and consumer demand.
- Future Growth Projections: Ross Stores anticipates comparable store sales growth of 7% to 8% for the current quarter, although its full-year growth outlook is more modest at 3% to 4%, reflecting resilience amid economic challenges.
- Investment Value Comparison: With a price-to-earnings ratio of 33, Ross Stores is more attractively valued compared to Walmart's 45, suggesting that while Walmart offers diverse shopping options, Ross may appeal more to budget-conscious consumers in the current economic climate.
See More
Ross Stores Opens 17 New Locations Nationwide
- Expansion Plan Launch: Ross Stores announced the opening of 17 new stores nationwide during February and March, including 13 Ross Dress for Less and four dd's DISCOUNTS, marking the first wave of its fiscal 2026 expansion plan to add approximately 110 new stores, achieving a total unit growth of 5%.
- Market Coverage Enhancement: The new stores span 11 states, particularly expanding Ross Dress for Less in the Mountain, Midwest, and Northeast regions, while also increasing dd's locations in core markets of California and Texas, and opening its first store in Utah, thereby strengthening its presence in key markets.
- Historical Growth Review: Since opening its first department store in California in 1950, Ross Stores has undergone three distinct phases of growth, from slow growth from 1950 to 1981, to hyper-growth following its 1982 off-price pivot and 1985 IPO, and then to disciplined, compounding growth from the late 1990s, now boasting 2,270 locations.
- Stock Market Performance Analysis: Although Ross Stores' shares fell 0.6% in premarket trading on Monday, the stock has risen over 50% in the past 52 weeks, reflecting market confidence in its future growth potential, especially following strong quarterly results and upbeat guidance.
See More
Goldman Sachs Lists Must-Buy Stocks Amid Market Fears
- Goldman Sachs Recommendations: Goldman Sachs recently highlighted stocks including Nvidia, Ross Stores, Viking Holdings, Once Upon a Farm, and Dutch Bros as must-buys amid rising market fears, reflecting strong confidence in these companies.
- Dutch Bros. Growth Potential: Analyst Christine Cho upgraded Dutch Bros. from neutral to buy, noting its robust growth potential in the U.S. restaurant sector, particularly driven by solid same-store sales growth and strong unit economics supporting mid-teens store growth.
- Once Upon a Farm Brand Strength: Analyst Leah Jordan initiated coverage on Once Upon a Farm with a buy rating, emphasizing its strong brand power and defensible market position, while the company is well-positioned within the
See More
Burlington Stores' Successful Year Expected to Boost Stock Performance: What's Ahead?
- Santa's Shopping Spree: Santa has been spotted doing extensive shopping at Burlington, suggesting a festive preparation for the holiday season.
- Burlington's Appeal: The store's variety and discounts likely make it a popular choice for holiday shoppers looking for gifts.
- Holiday Spirit: The image of Santa shopping reflects the joyful and giving spirit associated with the Christmas season.
- Community Engagement: This event may encourage local community members to visit Burlington for their holiday shopping needs.
See More
