Investment Analysis of Walmart and Ross Stores
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 10 2026
0mins
Should l Buy ROST?
Source: NASDAQ.COM
- 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.
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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: 211.690
Low
142.00
Averages
198.93
High
224.00
Current: 211.690
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.
Off-Price Retailers Positioned to Manage Rising Logistics Costs
- Pricing Strategy: According to Bank of America’s industry analysis, off-price retailers like TJX, Ross, and Burlington are leveraging higher Average Unit Retail (AUR) prices to offset margin pressures, maintaining competitiveness amid rising logistics costs.
- Logistics Cost Comparison: Despite diesel prices surging 50% year-over-year to $5.38 per gallon, analysts estimate this will exert approximately 20 basis points of pressure on TJX's gross margins, significantly lower than the 280 basis points peak seen in late 2022, indicating industry resilience.
- Inventory Management Advantage: By focusing on higher-margin units, off-price retailers effectively reduce their
See More
Off-Price Retailers May Face Upgrade Opportunities
- Market Dynamics: Off-price retailers like TJX, Ross Stores, and Burlington Stores may be facing changes in market conditions, although specific financial data and market reactions have not been disclosed, industry analysts generally believe these companies possess resilience amid economic fluctuations.
- Industry Outlook: With increasing consumer demand for discounted goods, these retailers may see sales growth in upcoming quarters, particularly as the appeal of off-price retailers could further strengthen against a backdrop of economic uncertainty.
- Competitive Landscape: While there are currently no specific upgrades or rating changes, the rising analyst attention on off-price retailers suggests that market confidence in their future performance may be increasing, especially as consumer spending shifts towards more cost-effective products.
- Investor Focus: Investors may closely monitor these companies' earnings reports and market performance to assess their adaptability during economic fluctuations and long-term growth potential, although specific financial metrics and analytical data are currently lacking.
See More
Retail Sector Faces New Challenges and Opportunities Amid Iran War
- Inflation and Job Market: The retail sector is grappling with short-term concerns due to persistent inflation impacting consumer spending and a weakening job market, particularly exacerbated by the onset of the Iran war, which has led to a spike in energy prices and rapid increases in gasoline costs, further straining consumer finances.
- Strong Performance of Ross Stores: Ross Stores reported a 9% increase in same-store sales for the fiscal fourth quarter ending January 31, with management projecting a 3% to 4% increase in same-store sales and a 6% to 11% growth in earnings per share this year, demonstrating robust execution and market appeal amid economic challenges.
- Five Below's Continued Expansion: Five Below achieved a remarkable 15.4% increase in same-store sales for the fiscal fourth quarter ending January 31, with expectations for 3% to 5% growth in 2026, while planning to add 227 and 150 stores in 2024 and 2025 respectively, indicating strong market demand and expansion potential.
- Investment Opportunities Arise: Despite facing short-term challenges, Ross Stores and Five Below's stock prices are currently 4.9% and 8.2% below their 52-week highs, respectively, presenting potential buying opportunities for long-term investors and encouraging patient growth investors to take a closer look at these stocks.
See More
Retail Sector Challenges Amid Growth for Ross Stores and Five Below
- Significant Sales Growth: Ross Stores reported a 9% increase in same-store sales for the fiscal fourth quarter, with expectations of 3% to 4% growth this year, demonstrating strong performance amid economic challenges and reinforcing its market position.
- Ongoing Expansion Plans: The company ended the year with 1,904 stores across 44 states, an increase of 73 stores from the previous year, while also adding 8 dd's stores, indicating its potential for market expansion and confidence in future growth.
- Strong Performance for Five Below: Five Below achieved a remarkable 15.4% increase in same-store sales for the fiscal fourth quarter, with guidance for 3% to 5% growth in 2026, reflecting its appeal in the teen market and sustained consumer demand.
- Store Expansion Strategy: Five Below plans to open 227 and 150 new stores in 2024 and 2025 respectively, aiming for a total of 3,500 stores, showcasing its proactive response to market demand and long-term growth strategy.
See More
Ross Stores (ROST.US) Director Plans to Sell $4.66 Million in Common Stock via Form 144
Stock Sale Announcement: Ross Stores' Director Michael Hartshorn plans to sell 21,874 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $4.66 million.
See More
Ross Stores (ROST.US) Director Plans to Sell $4.36 Million in Common Stock via Form 144
Stock Sale Announcement: Michael Balmuth, the director of Ross Stores, plans to sell 20,449 shares of the company's common stock on March 24, with an estimated market value of approximately $4.36 million.
Reduction in Shareholding: Balmuth has decreased his shareholding in Ross Stores by 25,615 shares since March 23, 2026, with a total value of around $5.47 million.
See More
Off-Price Retailers Positioned to Manage Rising Logistics Costs
- Pricing Strategy: According to Bank of America’s industry analysis, off-price retailers like TJX, Ross, and Burlington are leveraging higher Average Unit Retail (AUR) prices to offset margin pressures, maintaining competitiveness amid rising logistics costs.
- Logistics Cost Comparison: Despite diesel prices surging 50% year-over-year to $5.38 per gallon, analysts estimate this will exert approximately 20 basis points of pressure on TJX's gross margins, significantly lower than the 280 basis points peak seen in late 2022, indicating industry resilience.
- Inventory Management Advantage: By focusing on higher-margin units, off-price retailers effectively reduce their
See More
Off-Price Retailers May Face Upgrade Opportunities
- Market Dynamics: Off-price retailers like TJX, Ross Stores, and Burlington Stores may be facing changes in market conditions, although specific financial data and market reactions have not been disclosed, industry analysts generally believe these companies possess resilience amid economic fluctuations.
- Industry Outlook: With increasing consumer demand for discounted goods, these retailers may see sales growth in upcoming quarters, particularly as the appeal of off-price retailers could further strengthen against a backdrop of economic uncertainty.
- Competitive Landscape: While there are currently no specific upgrades or rating changes, the rising analyst attention on off-price retailers suggests that market confidence in their future performance may be increasing, especially as consumer spending shifts towards more cost-effective products.
- Investor Focus: Investors may closely monitor these companies' earnings reports and market performance to assess their adaptability during economic fluctuations and long-term growth potential, although specific financial metrics and analytical data are currently lacking.
See More
Retail Sector Faces New Challenges and Opportunities Amid Iran War
- Inflation and Job Market: The retail sector is grappling with short-term concerns due to persistent inflation impacting consumer spending and a weakening job market, particularly exacerbated by the onset of the Iran war, which has led to a spike in energy prices and rapid increases in gasoline costs, further straining consumer finances.
- Strong Performance of Ross Stores: Ross Stores reported a 9% increase in same-store sales for the fiscal fourth quarter ending January 31, with management projecting a 3% to 4% increase in same-store sales and a 6% to 11% growth in earnings per share this year, demonstrating robust execution and market appeal amid economic challenges.
- Five Below's Continued Expansion: Five Below achieved a remarkable 15.4% increase in same-store sales for the fiscal fourth quarter ending January 31, with expectations for 3% to 5% growth in 2026, while planning to add 227 and 150 stores in 2024 and 2025 respectively, indicating strong market demand and expansion potential.
- Investment Opportunities Arise: Despite facing short-term challenges, Ross Stores and Five Below's stock prices are currently 4.9% and 8.2% below their 52-week highs, respectively, presenting potential buying opportunities for long-term investors and encouraging patient growth investors to take a closer look at these stocks.
See More
Retail Sector Challenges Amid Growth for Ross Stores and Five Below
- Significant Sales Growth: Ross Stores reported a 9% increase in same-store sales for the fiscal fourth quarter, with expectations of 3% to 4% growth this year, demonstrating strong performance amid economic challenges and reinforcing its market position.
- Ongoing Expansion Plans: The company ended the year with 1,904 stores across 44 states, an increase of 73 stores from the previous year, while also adding 8 dd's stores, indicating its potential for market expansion and confidence in future growth.
- Strong Performance for Five Below: Five Below achieved a remarkable 15.4% increase in same-store sales for the fiscal fourth quarter, with guidance for 3% to 5% growth in 2026, reflecting its appeal in the teen market and sustained consumer demand.
- Store Expansion Strategy: Five Below plans to open 227 and 150 new stores in 2024 and 2025 respectively, aiming for a total of 3,500 stores, showcasing its proactive response to market demand and long-term growth strategy.
See More
Ross Stores (ROST.US) Director Plans to Sell $4.66 Million in Common Stock via Form 144
Stock Sale Announcement: Ross Stores' Director Michael Hartshorn plans to sell 21,874 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $4.66 million.
See More
Ross Stores (ROST.US) Director Plans to Sell $4.36 Million in Common Stock via Form 144
Stock Sale Announcement: Michael Balmuth, the director of Ross Stores, plans to sell 20,449 shares of the company's common stock on March 24, with an estimated market value of approximately $4.36 million.
Reduction in Shareholding: Balmuth has decreased his shareholding in Ross Stores by 25,615 shares since March 23, 2026, with a total value of around $5.47 million.
See More
