11 Best Retail Stocks to Buy Right Now

7. Ross Stores, Inc. (NASDAQ:ROST)

Number of Hedge Fund Holders: 62

Ross Stores, Inc. (NASDAQ:ROST) is an off-price apparel retailer that operates home fashion stores under two brands: Ross Dress for Less (Ross) and DD’s Discount. It operates around 2,205 store locations in 44 US states, the District of Columbia, and Guam. Customers can find discounted in-season designer and name-brand apparel at the company’s stores, along with footwear, accessories, and home fashion. These discounts typically vary from 20% to 60% compared to department and specialty store regular prices, giving the company a competitive market edge.

In March, the company opened 16 Ross Dress for Less and three dd’s DISCOUNTS stores in 14 states, continuing its expansion plans. In a report released on April 14, Matthew Boss from J.P. Morgan maintained a buy rating for the company, setting a price target of $161.00.

Ross Stores, Inc. (NASDAQ:ROST) also reported fiscal Q4 2024 earnings at the high end of its expectations, with sales driven by customers’ positive responses to the improved assortments of quality branded bargains. Sales for fiscal Q4 2024 were $5.9 billion, with a comparable store sales gain of 3%, on top of a 7% gain in the same period last year.

Ross Stores, Inc. (NASDAQ:ROST) reported similar positive results for 2024. Its net income for fiscal 2024 rose to $2.1 billion compared to $1.9 billion last year, while total sales for the year increased to $21.1 billion, up from $20.4 billion in the prior year. These trends reflect the company’s strong operations, ranking it fifth on our list of the best retail stocks to invest in according to hedge funds.