Why Ross Stores Stock Is Gaining Traction Among Momentum Traders

When investors talk about momentum trading, they’re essentially riding the wave of a stock’s recent performance—betting that a positive trend will continue upward. The challenge lies in identifying which stocks genuinely have lasting momentum versus those with temporary price spikes. That’s where tools like the Zacks Momentum Style Score come in handy.

Strong Signals Across Multiple Metrics

Ross Stores (ROST), the discount retailer that’s been turning heads lately, currently carries a Momentum Style Score of A—a rating that reflects genuine market interest. This store stock has been delivering solid price action that speaks volumes about its underlying strength.

The numbers tell an interesting story. Over the past seven days, ROST surged 4.76%, outpacing its industry peer group which gained 4.33% in the same window. Zooming out to a monthly view, the picture remains favorable: ROST moved 4.33% while the broader Retail - Discount Stores sector climbed 4.63%. When comparing these store stock performances to the overall market, the outperformance becomes even more striking—ROST delivered 22.11% over three months and 27.19% over the past year, substantially beating the S&P 500’s 6.77% and 21.08% returns respectively.

Volume has been supporting this rally as well. The stock is averaging 2,042,110 shares over its trailing 20-day period, providing the liquidity and conviction that typically accompany genuine momentum moves.

Earnings Revisions Point Upward

What separates a momentary pop from sustained momentum? Often it’s the fundamental story underneath. For ROST, analyst sentiment has been shifting in a bullish direction. Within the past 60 days, six earnings estimates moved higher with zero downward revisions for the full year. This positive revision activity nudged the consensus earnings estimate from $6.20 to $6.47—a meaningful adjustment that suggests improving business conditions.

Looking ahead to the next fiscal year, the trend continues: six upward estimate revisions compared to no cuts. This pattern indicates that Wall Street is growing increasingly confident in this retailer’s trajectory.

A Store Stock Worth Watching

Combining these elements—strong price momentum, improving analyst sentiment, and positive earnings revisions—Ross Stores earned its Zacks Rank of #1 (Strong Buy) status. For traders focused on momentum and investors hunting for near-term opportunities in the retail space, this store stock deserves a closer look. The convergence of technical strength and fundamental improvement creates the kind of setup that momentum traders typically monitor carefully.

The key takeaway: Ross Stores isn’t just seeing a temporary price jump; it’s displaying the kind of sustained momentum that comes from both market enthusiasm and improving business fundamentals.