Back to top

Image: Bigstock

Dillard's (DDS) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Dillard's (DDS - Free Report) closed at $282.88 in the latest trading session, marking a +0.58% move from the prior day. This move outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.11%.

Prior to today's trading, shares of the department store operator had lost 10.44% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.96% and the S&P 500's loss of 8.4% in that time.

Dillard's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.87, down 50.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.48 billion, up 0.14% from the prior-year quarter.

DDS's full-year Zacks Consensus Estimates are calling for earnings of $36.23 per share and revenue of $6.8 billion. These results would represent year-over-year changes of -9.54% and +4.79%, respectively.

Investors might also notice recent changes to analyst estimates for Dillard's. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dillard's is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Dillard's has a Forward P/E ratio of 7.76 right now. For comparison, its industry has an average Forward P/E of 7.76, which means Dillard's is trading at a no noticeable deviation to the group.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DDS in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dillard's, Inc. (DDS) - free report >>

Published in