PEG Ratio

The PEG ratio (price-to-earnings divided by earnings growth rate) of 0.83x suggests the stock price is low relative to its expected profit growth, often signaling potential value.

This stands below the sector median of 0.98x, placing ROST in the 45th percentile among its sector peers — slightly cheaper than the midpoint. The metric has been decreasing over the last eight quarters, with the year-over-year change unavailable and a quarter-over-quarter decline of -3.5%, moving from 3.29x to 0.83x over the reported period. A low PEG ratio paired with a declining trend may indicate that the stock’s undervaluation is narrowing, possibly due to slowing growth expectations or price adjustments. This combination presents a mixed risk-opportunity: the low level supports a value case, but the negative trend warns of fading growth momentum. The metric partially contradicts the overall NEUTRAL verdict by pointing to a potential discount, yet the downward pattern tempers that appeal, aligning with a neutral stance.

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