03:02 PM EDT, 08/07/2024 (MT Newswires) -- Ross Stores ( ROST ) is expected to have a strong Q2, with its earnings per share to exceed the consensus by $0.01 and the company to raise the high-end of its 2024 EPS guidance, UBS Securities said in an earnings preview Wednesday.

However, this expectation is already factored into market prices, potentially limiting further EPS and price-to-earnings ratio improvements, leading to "balanced upside/downside skew around the event," the firm added.

UBS said that sentiment remains bullish for Ross Stores ( ROST ), with it being the most long-crowded stock in Softlines and low short interest.

The firm expects to see a strong sales trend heading into the back-to-school season and places sales growth at around mid-single digits.

UBS has a neutral rating for Ross Stores ( ROST ) with a 12-month price target of $147.

Price: 137.25, Change: +0.27, Percent Change: +0.20