When Ross Stores reported its latest results, it was the clear winner among the off-price retailers. Its sales figures and strategic plan point to more growth ahead, with one analyst seeing nearly 30% upside in the stock.

Ross was up against high expectations after a stellar fiscal first-quarter earnings report this spring. However, it still managed to deliver an upside surprise with its second-quarter report, with very strong comparable sales that demonstrate its recent strategy changes-from remodeling stores to leaning into social media-are working.

The results, reported Aug. 20, were so good that some analysts worried that industry leader TJX Cos. was losing market share to Ross. That's no small feat, given that TJX has long been the gold standard among off-pricers.

In fact, as Guggenheim analyst Simeon Siegel writes, if Ross follows the TJX model that means even more gains are to come.

"Using TJX's past to project Ross's future," he writes, means that we're in the "early innings of [a] multi-year Ross revenue opportunity."

Looking back to around 2018, Siegel sees five main steps that TJX took to turn itself into a powerhouse. The company focused on stocking its stores with better brands, improving the in-store experience, slowing inventory turnover down (making it less chaotic and higher quality), increasing its advertising budget, and replacing its chief executive officer.

Today, he writes, he is "seeing parallel actions/opportunities emerge" at Ross as it makes a number of the same moves. Its new CEO, Jim Conroy, joined early last year, for example, and it's also been stocking better brands and attracting new, younger shoppers via its successful marketing on sites like TikTok.

The proof is in the comparable sales pudding. For years, Ross's same-store sales lagged that of TJX, but that's changed over the past year "with management excited about ongoing growth and signals that the playbook is working," Siegel notes.

In fact, TJX's largest division Marmaxx was the main drag on the company's most recent earnings report, which ultimately meant its comps were up just 4% in its fiscal second quarter; that' less than half of the 10% comp gain that Ross logged.

Smaller peer Burlington Stores' comps also disappointed, meaning that Ross's results weren't just stronger than those of its rivals, they were stronger despite a difficult backdrop for the industry as a whole.

Little wonder then that Siegel reiterated that Ross is his favorite "expensive for a reason" stock with more market share gains likely ahead. Before TJX's long winning streak began in 2018, "the Street used to favor Ross as the fundamentally better company, and we have been suggesting this sentiment was on the cusp of returning," he writes.

He has a $290 price target on the shares, nearly 30% above where they currently trade, and thinks Ross will earn $9.27 a share next year, ahead of the roughly $9 consensus.

Siegel isn't alone in his optimism though. According to FactSet, all 20 analysts that cover Ross raised their earnings estimates for Ross in August following the company's strong second quarter. The average analyst price target has been moving higher in tandem, and now stands at $275, implying more than 20% upside.

Ross, which Barron's recommended in June, have risen more than 25% since the start of 2026, but if its strategy continues to succeed, the stock should bag more gains.