Ross Stores: Buy The Dip Despite Tariff Impact

  • Initiating Ross Stores with a 'Buy' rating and $160 fair value, despite flat Q1 SSS and weak near-term guidance. Tariffs and weak consumer confidence are near-term headwinds, but Ross's off-price model and store expansion support long-term growth. Ross's generous capital allocation—strong free cash flow, dividends, and buybacks—reinforces shareholder value.