Shares of Ross Stores were gaining 5.6% to $87.85 in pre-market trading.
The analyst firm expects the clothing retailer to report earnings of $4.31 a share for fiscal 2015, up from previous estimates of $4.25 a share for the year. Jefferies analysts raised their fiscal 2016 EPS estimates for Ross Stores to $4.71 a share from $4.70 a share.
"ROST's strong F'3Q results further reinforce the resilience of the off-price model and we continue to see the off-price players gaining market share," Jefferies analysts wrote. "While we are optimistic on the LT growth oppty here, we are cautious in the near to medium term esp given mgmt's outlook for increased promo pressures heading into the important Holiday F'4Q."
Separately, TheStreet Ratings team rates ROSS STORES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROSS STORES INC (ROST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: ROST Ratings Report