Ross Stores (ROST) is Benefitting from a Better Value Offering

Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for “Madison Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index ended an incredibly successful three-year run with a full-year return of 10.6%, amounting to an annual increase of more than 14%. The market favored more volatile and speculative companies in 2025. This market environment poses challenges for the Madison Mid Cap portfolio, which is focused on high-quality, profitable businesses. Historically, this focus has supported long-term investment success, and the firm remains committed to it, is optimistic about the opportunities this year has presented, and has actively capitalized on them. Against this backdrop, the Fund decreased 1.2% in Q4 2025, lagging the Russell Midcap Index’s 0.2% increase. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Madison Mid Cap Fund highlighted Ross Stores, Inc. (NASDAQ:ROST) as one of its leading contributors. Ross Stores, Inc. (NASDAQ:ROST) is a US-based off-price retail apparel and home fashion store operator. On March 10, 2026, Ross Stores, Inc. (NASDAQ:ROST) stock closed at $212.93 per share. One-month return of Ross Stores, Inc. (NASDAQ:ROST) was 10.13%, and its shares gained 67.60% over the past 52 weeks. Ross Stores, Inc. (NASDAQ:ROST) has a market capitalization of $68.92 billion.

Madison Mid Cap Fund stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its fourth quarter 2025 investor letter:

“The top five contributors for the quarter were Ross Stores, Inc. (NASDAQ:ROST, MKS, Waters, PACCAR, and Amphenol. Ross Stores reported very strong sales results in the quarter and management offered an optimistic outlook for the rest of the year. The company is benefiting from its strategy to offer even better value, by further emphasizing familiar brands at low prices. Sales are up across all categories and more consumers are visiting Ross stores.”

Ross Stores, Inc. (NASDAQ:ROST) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held Ross Stores, Inc. (NASDAQ:ROST) at the end of the fourth quarter, up from 58 in the previous quarter. While we acknowledge the potential of Ross Stores, Inc. (NASDAQ:ROST) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.