Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.

Ross Stores, Inc.

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Ross Stores (ROST) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Ross Stores is one of 196 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Ross Stores is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ROST's full-year earnings has moved 4.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ROST has moved about 19.8% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have gained about 7.4% on average. This means that Ross Stores is outperforming the sector as a whole this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Bed Bath & Beyond (BBBY). The stock has returned 14.6% year-to-date.
In Bed Bath & Beyond's case, the consensus EPS estimate for the current year increased 12.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Ross Stores belongs to the Retail - Discount Stores industry, a group that includes 8 individual stocks and currently sits at #45 in the Zacks Industry Rank. On average, this group has gained an average of 6.4% so far this year, meaning that ROST is performing better in terms of year-to-date returns.
On the other hand, Bed Bath & Beyond belongs to the Internet - Commerce industry. This 34-stock industry is currently ranked #83. The industry has moved +10.1% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Ross Stores and Bed Bath & Beyond as they attempt to continue their solid performance.
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Is Ross Stores (ROST) Stock Outpacing Its Retail-Wholesale Peers This Year?

As the final calendar pages of 2025 turn, the holiday shopping season once again underscored its importance to the retail industry. From Black Friday through Christmas week, consumer demand has remained resilient despite lingering concerns about inflation, trade policies, a cooling labor market and still-elevated interest rates. While shoppers became more selective, they continued to spend, prioritizing value and brands that deliver convenience, speed and flexible pricing.
To meet these shifting behaviors, retailers adopted innovative strategies and enhanced delivery logistics as consumers seamlessly transitioned between digital and physical channels. Shoppers browsed online, picked up in stores, ordered via mobile apps, and even turned to AI-driven chatbots to discover products and compare prices. Retailers that invested in real-time inventory visibility, faster fulfillment, frictionless checkout and AI-powered demand forecasting appear well-positioned to emerge as holiday winners.
At the same time, industry participants relied on targeted promotions, loyalty programs and data-driven pricing to stimulate demand without eroding profitability. Subscription perks, exclusive member offers and buy-now-pay-later options helped convert value-conscious shoppers. Moreover, disciplined cost control and aggressive marketing not only safeguard margins but also drive healthy sales volumes.
These dynamics are already reflected in the sales data. The National Retail Federation projects U.S. holiday sales for November and December to exceed $1 trillion for the first time, with year-over-year growth of 3.7%-4.2%, translating into total sales of $1.01-$1.02 trillion. This strength is reinforced by Adobe’s latest data, which showed online spending during Cyber Week — the five-day period from Thanksgiving through Cyber Monday — jumped 7.7% year over year to $44.2 billion.
Undoubtedly, holiday performance often serves as a preview of how retailers may fare in the year ahead. Strong traffic trends, inventory discipline and customer retention metrics during this period often translate into sustained revenue momentum. Here are four retail stocks to consider for 2026 against the backdrop of a projected record-breaking 2025 holiday season — Amazon.com, Inc. AMZN, Ross Stores, Inc. ROST, Walmart Inc. WMT and Costco Wholesale Corporation COST.
4 Prominent Picks for 2026
Amazon: Driving the Digital Holiday Spend Wave
Amazon continues to dominate global e-commerce by combining unmatched product selection, industry-leading fulfillment capabilities and technological innovation. These strengths become especially visible during peak holiday shopping periods. Its Prime ecosystem drives customer loyalty and repeat purchases, while ongoing investments in faster delivery, regionalized fulfillment, and last-mile logistics enhance convenience and reduce shipping times. Amazon’s data-driven personalization, AI-powered recommendations, and growing use of automation across warehouses improve conversion rates and operational efficiency.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS implies growth of 11.9% and 29.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 11.3% rise in sales and 9.5% growth in earnings. This Zacks #2 (Buy) Ranked company has a trailing four-quarter earnings surprise of 22.5%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ross Stores: An Off-Price Destination for Holiday Shoppers
Ross Stores continues to demonstrate the strength of its off-price model, driven by compelling branded assortments, effective merchandising execution and strong customer engagement across regions. Management highlighted broad-based category momentum, improved vendor partnerships, and successful marketing initiatives that are enhancing traffic and basket trends . Store expansion and disciplined inventory management further reinforce its ability to capitalize on favorable buying opportunities, particularly during peak holiday shopping periods. With a resilient value proposition and a proven operating playbook, Ross appears well-positioned to sustain market share gains and long-term growth.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS implies growth of 6% and 1.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 5.4% rise in sales and 9.8% growth in earnings. This Zacks #2 Ranked company has a trailing four-quarter earnings surprise of 6.7%, on average.
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Walmart: Omnichannel Leader for Holiday Value Shoppers
Walmart continues to strengthen its position as a leading omnichannel retailer, leveraging a broad assortment, accelerated e-commerce momentum, and growing higher-margin profit streams such as advertising and membership. During the holiday season, Walmart’s combination of everyday low prices and omnichannel convenience positions it as a preferred destination for value-conscious shoppers. Its focus on faster fulfillment and tech-powered innovation, particularly in automation and AI, enhances customer convenience and operational efficiency. Market share gains across grocery, general merchandise, and health & wellness reflect durable brand relevance and customer loyalty. This scale-driven, diversified profit model supports steady growth well beyond the holiday period.
The Zacks Consensus Estimate for Walmart’s current financial-year sales and EPS implies growth of 4.5% and 4.8%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 4.5% rise in sales and 11.6% growth in earnings. This Zacks Rank #3 (Hold) company has a trailing four-quarter earnings surprise of 0.8%, on average.
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Costco: Membership Model Powers Holiday Traffic
Costco’s differentiated membership-driven model continues to fuel strong traffic, brand loyalty and market share gains, supported by a curated value-oriented assortment and an expanding global footprint. Holiday periods typically amplify bulk purchasing and gift-related categories, reinforcing Costco’s traffic and basket-size advantages. The company’s investments in digital capabilities, personalization and operational technology, including AI-enhanced inventory systems, are improving efficiency and elevating the member experience. Robust membership renewal rates and rising Executive penetration reinforce the strength of Costco’s recurring revenue base. Costco's disciplined expansion strategy and focus on quality, value and newness underscore its competitive moat.
The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS implies growth of 7.5% and 11.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 7.3% rise in sales and 9% growth in earnings. This Zacks Rank #3 company has a trailing four-quarter earnings surprise of 0.5%, on average.
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Holiday Sales Boom: 4 Retail Stocks Ready for 2026 Gains

The following are the top rated Consumer Discretionary stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
JD.COM INC (ADR) (JD) is a large-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch is 98% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: JD.Com Inc is a company principally engaged in the e-commerce business, including online retail and online marketplace mainly through its retail mobile apps and www.jd.com website (collectively, JD Platform). The Company operates its businesses through four segments. JD Retail segment, including JD Health, JD Industrials, and other components, mainly engage in online retail, online marketplace and marketing services in China. JD Logistics segment includes both internal and external logistics businesses. Dada segment is a local on-demand delivery and retail platform in China. New Businesses segment mainly include JD Property, Jingxi and overseas businesses. The Company mainly conducts its businesses in the domestic market and overseas markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of JD.COM INC (ADR)
DILLARD'S INC (DDS) is a large-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dillard's, Inc. is a retailer of fashion apparel, cosmetics and home furnishings. The Companys segments include the operation of retail department stores and a general contracting construction company. It operates 272 Dillards stores, including 28 clearance centers, and an Internet store at dillards.com offering a wide selection of merchandise including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), a portion of whose business includes constructing and remodeling stores for the Company. Its merchandise selections include its lines of exclusive branded merchandise, such as Antonio Melani, Gianni Bini, GB, Roundtree & Yorke and Daniel Cremieux. Its retail stores are located primarily in shopping malls and open-air centers throughout the southwest, southeast and Midwest regions of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DILLARD'S INC
ROSS STORES INC (ROST) is a large-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: 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.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ROSS STORES INC
ATOUR LIFESTYLE HOLDINGS LTD - ADR (ATAT) is a mid-cap growth stock in the Hotels & Motels industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Atour Lifestyle Holdings Ltd is a holding company principally engaged in hotel chain operations. The Company also leases the properties of the hotels. In addition, The Company digitally incorporates the marketing and sales of retail products and services into guests experience at hotel properties. The Company focuses on sleep-related products, aiming to enhance guests sleep quality. The Company mainly operates the brands Atour, Yaduo, Atour Light, Atour S, Atour Planet, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ATOUR LIFESTYLE HOLDINGS LTD - ADR
TOYOTA MOTOR CORP (ADR) (TM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TOYOTA MOTOR CORP (ADR)
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Peter Lynch - 12/18/2025

The U.S. economy is currently in a transition phase, characterized by easing financial conditions and steadily improving consumer sentiment. The recent rate cut by the Federal Reserve indicates a shift toward a more accommodative monetary policy, aimed at supporting economic growth as inflationary pressures moderate. Despite these improvements, households remain mindful of their budgets. Against this backdrop, discount retailers present attractive investment opportunities for 2026, benefiting from cautious spending habits and a gradual recovery in demand.
Although inflation has eased from its peak, the cost of essential items remains well above pre-pandemic levels. This has driven a “trade-down” effect, with consumers across income levels increasingly turning to value-oriented options. As a result, discount retailers continue to see steady foot traffic as shoppers seek affordable choices for both necessity and discretionary purchases.
Discount retailers also benefit from structural operating advantages. Lean store formats, efficient supply chains, digitization and rapid inventory turnover enable these companies to respond quickly to changes in consumer demand. Additionally, an emphasis on private-label products supports margin stability while enabling competitive pricing. Meanwhile, investments in data analytics and artificial intelligence are optimizing operations, personalizing customer experiences and driving efficiency.
Looking ahead to 2026, the outlook for the sector appears increasingly promising as the impacts of easing monetary policy gradually influence consumer spending and corporate profits. Given these factors, we've identified four discount retailers — Ross Stores, Inc. ROST, Dollar General Corporation DG, Costco Wholesale Corporation COST and Burlington Stores, Inc. BURL — to keep an eye on.
4 Prominent Retail-Discount Picks
Ross Stores: Branded Value Driving Off-Price Momentum
Ross Stores continues to demonstrate the strength of its off-price model, driven by compelling branded assortments, effective merchandising execution and strong customer engagement across regions. Management highlighted broad-based category momentum, improved vendor partnerships, and successful marketing initiatives that are enhancing traffic and basket trends. Store expansion and disciplined inventory management further reinforce its ability to capitalize on favorable buying opportunities. With a resilient value proposition and a proven operating playbook, Ross appears well-positioned to sustain market share gains and long-term growth.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS implies growth of 6% and 1.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 5.4% rise in sales and 9.8% growth in earnings. This Zacks #2 (Buy) Ranked company has a trailing four-quarter earnings surprise of 6.7%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Dollar General: Expanding Reach With Value and Convenience
Dollar General’s case rests on its powerful value-and-convenience proposition, expanding appeal across income cohorts, and consistent market share gains in both consumable and non-consumable categories. Strategic initiatives around pricing, private brands, shrink reduction, and operational execution are translating into stronger profitability and cash generation. The company’s dense store footprint, ongoing remodels and disciplined capital allocation support durable competitive advantages. As execution continues to improve, Dollar General is positioned to drive steady growth and reinforce its role as a defensive retail leader.
The Zacks Consensus Estimate for Dollar General’s current financial-year sales and EPS implies growth of 4.7% and 6.6%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 4.2% rise in sales and 8.9% growth in earnings. This Zacks Rank #3 (Hold) company has a trailing four-quarter earnings surprise of 22.9%, on average.
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Costco: Leveraging Membership Model for Success
Costco’s differentiated membership-driven model continues to fuel strong traffic, brand loyalty and market share gains, supported by a curated value-oriented assortment and expanding global footprint. The company’s investments in digital capabilities, personalization and operational technology, such as AI-enhanced inventory systems, are improving efficiency and elevating the member experience. Robust membership renewal rates and rising Executive penetration reinforce the strength of its ecosystem and recurring revenue base. Costco's disciplined expansion strategy and focus on quality, value and newness underscore its competitive moat.
The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS calls for growth of 7.5% and 11.3%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 7.3% rise in sales and 9.2% growth in earnings. This Zacks Rank #3 company has a trailing four-quarter earnings surprise of 0.5%, on average.
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Burlington Stores: Margin Expansion and Store Growth Upside
Burlington Stores is making meaningful progress executing its off-price transformation, supported by margin expansion, disciplined cost control and improving merchandising capabilities. Management emphasized strong underlying demand, effective inventory flexibility and a robust pipeline of new store openings that continues to exceed expectations. Investments in supply chain efficiency and operational initiatives are strengthening profitability while preserving value leadership. As operational improvements scale alongside unit growth, Burlington appears well-positioned to deliver durable earnings power and long-term shareholder value.
The Zacks Consensus Estimate for Burlington Stores’ current financial-year sales and EPS implies growth of 8% and 18.4%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates an 8.9% rise in sales and 12.2% growth in earnings. This Zacks Rank #3 company has a trailing four-quarter earnings surprise of 0.5%, on average.
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Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Discount Retail Stocks to Watch in 2026 as Shoppers Seek Bargains

Costco Wholesale Corporation COST released its first-quarter fiscal 2026 results on Dec. 11, after the closing bell, drawing fresh attention from investors tracking the retail sector’s performance. Given its stable growth and loyal membership base, Costco has historically weathered economic hiccups better than many competitors. Now that its latest earnings are out, investors are contemplating whether to increase their stake, hold tight to their current investments or sell off shares in response to new data and market trends.
Sneak Peek Into Costco’s Q1 Performance
Shares of Costco have fallen 2.7% since the release of its first-quarter fiscal 2026 earnings, reflecting investor caution over the top-line miss. Nonetheless, both revenues and earnings improved year over year, driven by robust membership growth, resilient traffic, double-digit e-commerce gains and margin expansion. (Read: Costco Beats Q1 Earnings Estimates With 6.4% Comparable Sales Growth)
The company's ability to generate strong comparable sales across regions highlights its effective pricing strategy and member loyalty. Comparable sales, excluding gasoline prices and foreign exchange impacts, rose 6.4%. In the United States, comparable sales increased 5.9%, while Canada and Other International markets saw gains of 9% and 6.8%, respectively.
Costco ended the quarter with 81.4 million paid members, representing a 5.2% increase from the prior year. Executive memberships, a more profitable category for Costco, increased 9.1% year over year to reach 39.7 million, accounting for 74.3% of worldwide sales. The company's commitment to value and quality has fostered strong loyalty among members.
How Consensus Estimates Stack Up for Costco Post Q1 Earnings
Over the past seven days, the Zacks Consensus Estimate for the current fiscal year has moved up by 4 cents to $20.02, while the estimate for the next fiscal year has increased 14 cents to $21.93. These estimates indicate expected year-over-year growth rates of 11.3% and 9.6%, respectively.
Image Source: Zacks Investment Research
Costco’s Winning Formula: Membership and Digital Expansion
Costco’s resilient business model, centered around a membership-based structure, continues to be a major growth driver. The company’s high membership renewal rates, coupled with its efficient supply chain management and bulk purchasing power, ensure competitive pricing. The renewal rate remained healthy at 92.2% in the United States and Canada and 89.7% worldwide.
Members pay an annual fee for access to Costco's warehouses, where they can purchase goods at significant discounts. This model not only ensures a steady inflow of revenues but also creates a sense of exclusivity and value among its members. Membership fee income rose 14% year over year to $1,329 million in the first quarter, benefiting from strong renewal rates and the annualized benefit of the recent membership fee increase.
Costco’s ability to evolve with changing consumer preferences has also played a vital role in its expansion. The company adjusts its product mix to include both everyday essentials and unique, high-demand items — a strategy that strengthens its appeal across diverse customer segments. Through data-driven market analysis and an adaptable merchandising approach, Costco has steadily expanded its presence in both domestic and international markets. Management reiterated confidence in sustaining 30-plus net warehouse openings annually over the coming years, with a balanced mix between the U.S. and international markets.
Digital acceleration and logistics investments are monetizing Costco’s assortment and big-ticket capability. Digitally enabled comparable sales surged 20.5% year over year, supported by 24% growth in website traffic and 48% growth in app engagement. Management highlighted checkout productivity improvements of up to 20% in warehouses adopting pre-scan technology, while AI-driven pharmacy inventory systems improved in-stock levels to more than 98% and supported mid-teen growth in prescription volumes. The company’s same-day delivery offering, supported by partnerships with Instacart in the United States and Uber Eats and DoorDash across international markets, delivered standout performance during the quarter.
This robust operational performance translated into strong financial results. Costco generated $4,688 million of operating cash flow in the first quarter of fiscal 2026 and concluded the quarter with $16,217 million in cash and equivalents. Management invested nearly $1.53 billion in capital expenditures during the quarter and signaled approximately $6.5 billion for fiscal 2026, reflecting investments in warehouse openings, logistics infrastructure and digital capabilities.
Costco Navigates Competitive Landscape as Peers Scale Up
Costco's impressive sales figures are part of a larger retail picture where competition is intensifying. Rivals like Ross Stores, Inc. ROST, Dollar General Corporation DG and Target Corporation TGT are investing in expanding their product assortments, enhancing supply-chain efficiency, and upgrading in-store and digital experiences to capture greater market share. These retailers are also sharpening their value propositions through competitive pricing, private-label expansion and targeted promotional strategies.
Moreover, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the selling, general and administrative rate. Additionally, foreign exchange volatility and potential tariffs on key imports create uncertainty.
Does Costco Tick the Boxes for Value Investing?
Costco stock has fallen 5.9% over the past month against the industry’s rise of 3.1%. A sneak peek into key retail peers' performance reveals that shares of Dollar General have risen 28.8% during the said time frame, while Ross Stores and Target have climbed 15.6% and 10.2%, respectively.
Image Source: Zacks Investment Research
However, the stock is trading at a significant premium to its peers. Costco's forward 12-month price-to-earnings ratio stands at 41.81, higher than the industry’s ratio of 30.15 and the S&P 500's 23.35. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 12.71), Ross Stores (26.40) and Dollar General (19.55).
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While Costco continues to trade at a notable premium to its peers, reflecting investor confidence in its strong brand image, loyal membership base and long-term growth potential, the stock’s recent underperformance relative to the industry highlights some caution. With such a high valuation, even minor setbacks could trigger a pullback in the stock.
How to Play Costco Stock: Buy, Hold or Sell?
Costco remains one of the most dependable names, supported by its steady membership growth, operational efficiency and disciplined expansion. However, with the stock already priced quite high, there may not be much room for short-term gains unless growth stays strong. For existing investors, holding the stock makes sense, given its long-term strength and resilience, while potential investors may want to wait for a more attractive entry point before buying in. Costco currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Costco Stock a Buy, Hold or Sell After Its Q1 Earnings Report?

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Ross Stores (ROST), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Ross Stores currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for ROST that show why this discount retailer shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ROST, shares are up 0.86% over the past week while the Zacks Retail - Discount Stores industry is up 1.73% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.16% compares favorably with the industry's 12.84% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Ross Stores have risen 25.35%, and are up 19.01% in the last year. In comparison, the S&P 500 has only moved 5.09% and 14.7%, respectively.
Investors should also take note of ROST's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ROST is averaging 3,203,170 shares for the last 20 days..
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ROST.
Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ROST's consensus estimate, increasing from $6.19 to $6.43 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that ROST is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Ross Stores on your short list.
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Ross Stores (ROST) Is Up 0.86% in One Week: What You Should Know

The TJX Companies, Inc. (TJX) has been a clear standout performer in 2025, with shares surging 30.4% year to date. This strong rally reflects investor confidence in TJX’s off-price model, consistent above-plan sales performance and clear market-share gains across geographies.
These strengths have enabled TJX to outpace several key benchmarks, including the Zacks Retail - Discount Stores industry’s growth of 6.4%, the Zacks Retail and Wholesale sector’s gain of 8.5% and the S&P 500’s advance of 20.9% over the same period.
TJX’s shares have also exceeded the performance of major peers in the off-price and value retail landscape. Ross Stores, Inc. (ROST) posted a solid 22.4% gain, but still trailed TJX’s impressive run. Meanwhile, Costco Wholesale Corporation (COST) and Burlington Stores, Inc. (BURL) recorded a decline of 3% and 5.5% year to date, highlighting the relative strength of TJX’s momentum within the broader competitive set.
TJX Stock YTD Performance
Image Source: Zacks Investment Research
After touching a 52-week high of $157.72 yesterday, TJX closed at $155.58, just modestly below that peak. The stock trades comfortably above the 50 and 200-day simple moving averages of $145.67 and $132.02, respectively, reinforcing its bullish trend and highlighting strong investor sentiment.
TJX Stock Trades Above 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
What’s Driving TJX Stock Higher?
TJX continues to benefit from its highly flexible off-price model, which enables rapid sourcing of quality branded merchandise at attractive values. This approach reinforces the treasure-hunt shopping experience that keeps customers returning frequently. Its broad global presence across the United States, Canada, Europe and Australia further strengthens resilience by diversifying revenue streams and customer bases.
Strong customer traffic continues to fuel TJX’s growth, reflected in a 5% comparable sales increase in the third quarter of fiscal 2026. Each division, Marmaxx, HomeGoods, TJX Canada and TJX International, delivered positive comps, highlighting broad momentum across categories and regions. This consistent traffic growth demonstrates the power of TJX’s value proposition and its ability to serve a diverse shopper base.
Expansion remains central to TJX’s long-term plans, with the company ending the fiscal third quarter with 5,191 stores globally. Management continues to target a long-term footprint of 7,000 stores across existing markets and its planned entry into Spain. The strong availability of branded inventory further supports this expansion, allowing TJX to stock new and existing stores with compelling assortments at scale.
Management’s confidence is evident in its raised fiscal 2026 outlook, reflecting the strength demonstrated in the fiscal third quarter. TJX now anticipates full-year comparable sales growth of 4%, a pretax profit margin of 11.6%, and EPS of $4.63 to $4.66, up 9% from last year. This is an improvement over prior guidance, which called for 3% comp growth, pretax margins of 11.4% to 11.5%, and EPS of $4.52 to $4.57. The upgraded outlook underscores TJX’s strong execution amid a mixed retail landscape.
Challenges on the Horizon for TJX
Higher operating costs continue to weigh on TJX’s profitability. Despite better gross margin in the third quarter of fiscal 2026, SG&A deleveraged 60 basis points due to rising payroll, incentive compensation and foundation-related expenses. These pressures make margin expansion harder and force TJX to balance its value proposition with stricter cost control in a highly competitive retail landscape.
Shrink is also a short-term concern for TJX. Last year’s favorable shrink adjustment sets up a tougher comparison for the fiscal fourth quarter, making margin gains harder to achieve even with solid sales. As shrink trends normalize, this could put additional pressure on profitability, making it an important factor to watch heading into year-end.
Is TJX’s Valuation Stretched?
TJX’s forward 12-month P/E of 30.97X sits slightly above the industry average of 29.88X and well above the broader sector average of 24.92X. Compared with peers, TJX falls in the mid-range: Costco trades at a significant premium of 43.17X, Ross Stores sits at the lower end with 12.8X and Burlington Stores is slightly below TJX at 25.17X.
TJX P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
How Are Estimates Stacking Up for TJX?
The Zacks Consensus Estimate for TJX’s earnings has seen mixed revisions in recent weeks, reflecting a balanced but steady outlook. Over the past seven days, the fiscal 2026 EPS estimate has inched up 1 cent to $4.66, while the fiscal 2027 estimate has dipped 3 cents to $5.08. Even with these modest adjustments, TJX is still projected to deliver solid earnings growth, up 9.4% in fiscal 2026 and 8.9% in fiscal 2027.
Image Source: Zacks Investment Research
What Is the Right Investment Strategy for TJX?
TJX’s combination of strong traffic trends, upgraded fiscal 2026 guidance and sustained market-share gains positions it as one of the more durable names in off-price retail. Its global expansion plans, steady comp growth and healthy merchandise availability help offset challenges tied to rising costs, shrink and a still-competitive retail backdrop.
While the stock’s robust 2025 rally limits near-term upside, TJX’s proven model and consistent execution support expectations for stable performance heading into 2026. Given its current valuation and balanced risk-reward profile, the stock appears better suited for holding rather than aggressive accumulation at present. TJX currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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TJX Stock Up 30% in 2025: What's the Smart Move for 2026?

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ross Stores (ROST).
Ross Stores currently has an average brokerage recommendation (ABR) of 1.50, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.50 approximates between Strong Buy and Buy.
Of the 20 recommendations that derive the current ABR, 15 are Strong Buy, representing 75% of all recommendations.
Brokerage Recommendation Trends for ROST
While the ABR calls for buying Ross Stores, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ROST a Good Investment?
In terms of earnings estimate revisions for Ross Stores, the Zacks Consensus Estimate for the current year has increased 4.1% over the past month to $6.43.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Ross Stores. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Ross Stores may serve as a useful guide for investors.
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Wall Street Analysts See Ross Stores (ROST) as a Buy: Should You Invest?

As Costco Wholesale Corporation COST prepares to unveil its first-quarter fiscal 2026 earnings results on Dec. 11, after the market closes, investors face an important decision: Should they buy the stock now or hold their current positions? With earnings expectations and market conditions in mind, it is crucial to evaluate key factors influencing Costco’s performance and whether the stock offers an attractive entry point ahead of its earnings report.
Costco's strategic investments, customer-centric approach, merchandise initiatives and focus on membership growth have enabled it to navigate the market. These strengths have resulted in decent sales and earnings growth, positioning COST as a consumer defensive stock.
Analysts are optimistic about Costco's upcoming earnings. The Zacks Consensus Estimate for first-quarter revenues stands at $67.28 billion, calling for an 8.3% increase from the prior-year reported figure. On the earnings front, the consensus estimate has improved by a penny to $4.25 per share over the past seven days, implying an 11.3% year-over-year jump.
Costco has a trailing four-quarter earnings surprise of 0.2%, on average. In the last reported quarter, this Issaquah, WA-based company beat the Zacks Consensus Estimate by a margin of 1%.
Image Source: Zacks Investment Research
What the Zacks Model Predicts About COST’s Q1 Earnings
As investors prepare for Costco's first-quarter announcement, the question looms regarding earnings beat or miss. Our proven model predicts that an earnings beat is likely for Costco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco has an Earnings ESP of +0.47% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco: Key Factors at Play
Costco’s growth strategies, competitive pricing and membership-driven business model have been instrumental in its sustained success. By offering products at discounted rates, the company appeals to shoppers seeking value and convenience. The company's bulk purchasing power and efficient inventory management allow it to keep prices low. This disciplined pricing mechanism helps Costco maintain steady store traffic and robust sales volumes. These factors are expected to have a favorable impact on the overall results.
Costco, in its latest November sales report, highlighted that net sales for the 12-week first quarter ended Nov. 23, 2025 reached $65.98 billion, reflecting an 8.2% increase from $60.99 billion last year. This growth was supported by strong comparable sales gains across regions and a notable contribution from e-commerce channels. Total comparable sales for the quarter rose 6.4%, supported by gains of 5.9% in the United States, 6.5% in Canada and 8.8% in Other International markets.
Furthermore, an expanding membership base, rising penetration of higher-value Executive memberships and a younger cohort entering the system all point to a robust membership fee income. Costco is promoting auto-renewal, enhancing targeted digital communication, and adding new member benefits such as extended warehouse hours and a $10 monthly Instacart credit for Executive members to strengthen engagement and reinforce loyalty. We expect membership fees to increase 11.3% during the quarter under review.
Costco continuously evolves to meet shifting market demands, regularly updating its product portfolio to include everyday necessities and unique, high-demand items to appeal to diverse customer groups. At the same time, ongoing investments in technology and logistics are reinforcing a seamless multi-channel ecosystem. Digitally enabled comparable sales rose 20.5% in the first quarter.
With a clear emphasis on delivering value-oriented offerings, Costco remains well-positioned for continued success in the dynamic retail landscape. However, it is essential to acknowledge the presence of certain headwinds, including underlying inflationary pressures, which may pose challenges. Moreover, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate. We expect SG&A expenses to increase 8.5% year over year.
Costco Stock Performance
Costco, which competes with Dollar General Corporation DG, Ross Stores, Inc. ROST and Target Corporation TGT, has seen its shares decline 10.6% in the past year compared with the industry’s fall of 0.1%. While shares of Dollar General and Ross Stores have rallied 51.3% and 14.3%, respectively, those of Target have dropped 30.9% in the aforementioned period.
Image Source: Zacks Investment Research
Does Costco Tick the Boxes for Value Investing?
From a valuation standpoint, Costco currently trades at a premium relative to its industry peers. The company’s forward 12-month price-to-earnings (P/E) ratio is 43.71, higher than the industry average of 30.16 and the S&P 500’s 23.59. However, the stock is also trading below its median P/E level of 49.87, observed over the past year. This valuation suggests that while Costco trades below its historical peak, investors are paying a premium relative to the company’s anticipated earnings growth.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 12.03), Ross Stores (25.57) and Dollar General (19.73).
Image Source: Zacks Investment Research
Buy Costco Now or Wait for a More Attractive Entry Point?
Costco has strengthened its position as a retail powerhouse, thanks to its strong membership model, competitive pricing and ability to adapt to evolving market trends. While the stock’s premium valuation might deter some investors, its steady growth, robust financial health and strategic initiatives indicate the potential for further upside. Current investors may consider holding or adding to their positions, while prospective investors could see any dips as a buying opportunity.
Costco Stock: Buy, Hold or Sell Ahead of Q1 Earnings?
Costco is heading into its first-quarter report with positive momentum, setting the stage for a potential earnings beat. Despite the stock’s high valuation and recent underperformance, factors such as consistent traffic, strong membership growth and effective operations indicate that Costco remains a reliable investment option ahead of the earnings release. For those considering investing in Costco, the current backdrop suggests that initiating positions ahead of the earnings release may be reasonable if one is seeking stability, even though short-term volatility may be expected. Meanwhile, existing shareholders may find it prudent to maintain their positions, as the underlying business fundamentals and favorable earnings setup provide enough support to weather any market fluctuations following the announcement.
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Should Costco Stock Be in Your Portfolio Ahead of Q1 Earnings?

Looking at the universe of stocks we cover at Dividend Channel, on 12/9/25, Harley-Davidson Inc (Symbol: HOG), Ross Stores Inc (Symbol: ROST), and Ameren Corp (Symbol: AEE) will all trade ex-dividend for their respective upcoming dividends. Harley-Davidson Inc will pay its quarterly dividend of $0.18 on 12/22/25, Ross Stores Inc will pay its quarterly dividend of $0.405 on 12/31/25, and Ameren Corp will pay its quarterly dividend of $0.71 on 12/31/25. As a percentage of HOG's recent stock price of $23.73, this dividend works out to approximately 0.76%, so look for shares of Harley-Davidson Inc to trade 0.76% lower — all else being equal — when HOG shares open for trading on 12/9/25. Similarly, investors should look for ROST to open 0.23% lower in price and for AEE to open 0.70% lower, all else being equal.
Below are dividend history charts for HOG, ROST, and AEE, showing historical dividends prior to the most recent ones declared.
Harley-Davidson Inc (Symbol: HOG):
Ross Stores Inc (Symbol: ROST):
Ameren Corp (Symbol: AEE):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 3.03% for Harley-Davidson Inc, 0.91% for Ross Stores Inc, and 2.82% for Ameren Corp.
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In Friday trading, Harley-Davidson Inc shares are currently down about 2.9%, Ross Stores Inc shares are off about 0.5%, and Ameren Corp shares are off about 0.6% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.