On June 01, 2026, Ross Stores Inc ROST shares fell 3.3% to a current price of $224.07. This decline follows a 52-week range that saw the stock reach a high of $237.41 and a low of $124.49, reflecting significant volatility over the past year.
- GF Valueâ„¢ verdict: Current price is $224.07 versus GF Valueâ„¢ of $172.52, indicating the stock is 29.9% overvalued.
- GF Scoreâ„¢ is 92/100, which suggests strong overall performance relative to market peers.
- Most notable signal: Insider activity shows that insiders sold $10.3 million in the last 3 months without any buying.
Is ROST Overvalued or Undervalued?
Based on the GF Valueâ„¢, Ross Stores Inc is currently overvalued. The current price of $224.07 is significantly higher than the estimated fair value of $172.52, representing a 29.9% margin of overvaluation. This suggests that investors may be paying a premium for the stock compared to its intrinsic value, which raises concerns about potential price corrections in the future. The GF Valuation label indicates that the stock is modestly overvalued, which could mean that the shares are subject to downward pressure if market sentiments shift or if company performance does not meet expectations.
GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given that ROST is trading above its GF Valueâ„¢, there is a risk that the stock may not sustain its current price levels, especially in light of recent insider selling activity, which often signals lack of confidence from those with the most intimate knowledge of the company.
How Does ROST's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 31.3x | 24.2x (5-Year Median) |
| Forward P/E | 28.8x | N/A |
Ross Stores' current P/E ratio of 31.3x is significantly above its 5-year median P/E of 24.2x, indicating that the stock is trading at a premium compared to its historical valuation. The forward P/E of 28.8x also suggests that the market expects continued growth; however, this elevated P/E analysis aligns with the GF Valueâ„¢ verdict of being overvalued. Investors looking for value may find this divergence concerning.
What Does ROST's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 92 |
| Financial Strength | 8/10 |
| Profitability | 9/10 |
| Growth | 9/10 |
| Valuation | 5/10 |
| Momentum | 9/10 |
The GF Scoreâ„¢ of 92/100 indicates that Ross Stores is positioned strongly across various performance metrics, particularly in Profitability (9/10) and Growth (9/10). However, the Valuation rank of 5/10 signals that the current price may not adequately reflect the company's intrinsic value. While the strong financial strength and momentum suggest robust operational health, the mixed valuation score highlights the potential risks associated with the current price level.
What Are Insiders Doing with ROST Stock?
In the last three months, insiders have sold $10.3 million worth of Ross Stores shares, with no reported buying activity during the same period. This pattern of selling without any purchases may suggest a lack of confidence among insiders regarding the stock's future performance, which could be a red flag for investors. When insiders sell significant amounts of stock, it may indicate they believe the stock is overvalued or that they anticipate challenges ahead.
What This Means for Investors
Based on the current analysis, Ross Stores Inc ROST is considered overvalued according to GF Valueâ„¢, which estimates fair value at $172.52 compared to the current market price of $224.07. This overvaluation, coupled with recent insider selling activity, may warrant caution for potential investors.
For the complete analysis, visit the Ross Stores Inc ROST stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is ROST's GF Scoreâ„¢?
ROST's GF Scoreâ„¢ is 92/100, indicating a strong performance relative to its peers based on various key metrics.
Is ROST overvalued or undervalued?
ROST is currently overvalued, with a GF Valueâ„¢ of $172.52 compared to the market price of $224.07.
What is ROST's P/E ratio?
ROST's P/E (TTM) is 31.3x, which is significantly above its 5-year median P/E of 24.2x, indicating a premium valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
