Ross Stores is witnessing significant institutional accumulation as several major investment firms substantially increase their positions in the discount retailer. This heightened activity comes just before the company’s crucial quarterly earnings announcement scheduled for November 20, with market analysts simultaneously raising their price targets.
Analyst Optimism Fuels Momentum
Market researchers have been actively revising their outlook for Ross Stores. UBS adjusted its price objective upward from $147 to $163 while maintaining a neutral stance. Morgan Stanley followed suit, increasing their target from $130 to $142. Wells Fargo presented an even more optimistic view, boosting their projection from $175 to $180 alongside an overweight recommendation. Overall, twenty brokerage firms rate the company’s shares as “outperform” with an average price target of $164.45, suggesting potential upside from the current trading level of $162.23. Technical indicators show strong momentum, raising questions about whether the equity can surpass its 52-week high of $165.07.
Institutional Investors Build Positions
Recent regulatory filings reveal substantial institutional accumulation. Resona Asset Management expanded its holdings by 6.1%, bringing its total position to 109,511 shares valued at $13.98 million. Fox Run Management established a completely new position, acquiring 12,178 shares worth $1.55 million. Professional investors now control an impressive 86.86% of outstanding shares, demonstrating strong confidence in the company’s prospects.
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Expansion Strategy Defies Retail Challenges
While many retailers are contracting operations, Ross Stores continues its aggressive expansion trajectory. The company plans to open 90 new locations during 2025, including 40 new stores across 17 states scheduled for September and October alone. This growth will bring the total store count to 2,273 locations. The long-term vision appears even more ambitious, with plans for at least 2,900 Ross Dress for Less and 700 dd’s DISCOUNTS stores nationwide.
Market expectations remain elevated for the upcoming fiscal year, with analysts forecasting earnings per share growth of 10.3% to reach $6.83. The forthcoming quarterly results on November 20 will determine whether the current market enthusiasm is justified.
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