Ross Stores stock (US7703231032): Goldman Sachs raises price target to $244 after dividend hike

Goldman Sachs upgraded Ross Stores to buy with a $244 price target on May 12, 2026, as the off-price retailer raised its quarterly dividend and beat earnings estimates.

Ross Stores delivered solid quarterly results and announced a dividend increase, prompting Goldman Sachs to raise its price target and maintain a buy rating on the off-price retail leader. The stock fell 5.0% on May 11, 2026, to $214.55, according to GuruFocus as of May 11, 2026, but analyst sentiment remains constructive.

As of: May 12, 2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Ross Stores Inc
• Sector/industry: Off-price retail apparel and home fashion
• Headquarters/country: United States
• Core markets: US off-price retail segment
• Key revenue drivers: Apparel, home fashion, accessories
• Home exchange/listing venue: Nasdaq (ROST)
• Trading currency: USD

Ross Stores: off-price retail powerhouse

Ross Stores operates as a leading off-price retailer of apparel and home fashion merchandise across the United States. The company benefits from consumer demand for value-oriented shopping, particularly during periods of economic tightness. According to Insider Monkey as of May 12, 2026, Ross Stores has gained from tighter consumer budgets as shoppers seek discounted merchandise. The company's business model centers on offering brand-name and private-label merchandise at significant discounts to regular retail prices.

Recent earnings and dividend action

Ross Stores reported quarterly results that beat both earnings per share and revenue estimates, according to MarketBeat as of May 12, 2026. Quarterly revenue grew 12.2% year-over-year, demonstrating solid top-line momentum. The company also raised its quarterly dividend to $0.445 per share from $0.41, signaling management confidence in cash generation and shareholder returns. Equities analysts expect Ross Stores to post $7.32 earnings per share for the current fiscal year.

Analyst outlook and institutional support

Goldman Sachs raised its price target on Ross Stores from $214.00 to $244.00 and maintained a buy rating, according to MarketBeat as of May 12, 2026. Barclays also increased its target price from $205.00 to $221.00 with an overweight rating. Institutional investors remain heavily committed to the stock, with hedge funds and other investors owning 86.86% of Ross Stores. First Eagle Investment Management boosted its stake by 2.4% in the fourth quarter to 1,464,567 shares worth approximately $263.8 million.

Valuation and market position

The stock trades at a price-to-earnings ratio of 33.95, according to Sparkasse as of May 12, 2026. The 52-week trading range spans from $124.49 to $231.16, reflecting significant volatility. The dividend yield stands at 0.74%, with an ex-dividend date of December 3, 2026. Ross Stores remains a key player in the US off-price retail sector, benefiting from consumer preference for value during economic uncertainty.

Conclusion

Ross Stores delivered strong quarterly performance with revenue growth and earnings beats, supported by analyst upgrades and a dividend increase. The company's positioning in off-price retail continues to resonate with value-conscious consumers. While the stock experienced a near-term pullback, analyst price targets suggest upside potential for investors with a longer-term horizon.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.