Ross Stores gains buy rating as sales grow 12% and plans 110 new stores in 2025

Ross Stores reported a strong 12% sales growth in Q4, driven by a 9% same-store sales increase due to higher customer traffic and transactions. Management plans to open 110 new stores in 2025, supporting growth through both store expansion and same-store sales increases. Adjusted earnings per share are projected to grow in the low teens, with a price target of $256 indicating about 20% upside potential. This combination of solid demand, expanding merchandise performance, and cost leverage underpins a reiterated buy rating for the stock.