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Here's Why Investors Should Buy Dillard's Stock Right Now
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Dillard’s Inc. (DDS - Free Report) is an appropriate investment option, as it is well poised for growth on the back of solid prospects such as inventory management initiatives, increased trendy product offerings and shareholder friendly moves. Its efforts to capitalize on growth opportunities in physical stores and e-commerce also bode well.
Moreover, this Zacks Rank #2 (Buy) company’s shares have gained 10.9%, against the industry’s decline of 2.1%. Additionally, the company has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer best investment opportunities.
Let's see what makes Dillard’s stock a lucrative pick at the moment.
What’s Working in Favor of the Stock?
Dillard’s is well positioned to benefit from growth opportunities in both its brick-and-mortar stores and e-commerce business. This will help retain existing customers and attract new ones. The company is making efforts to boost growth across its e-commerce business. It is focusing on enhancing merchandise assortments and effective inventory management. Going forward, we expect the company to gain from its focus on increasing productivity at existing stores, developing a leading omni-channel platform and enhancing its domestic operations.
Further, the company offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. Moreover, Dillard’s is focused on offering fashionable products to its customers and adding value through exceptional customer care service. We believe that the company’s strategy of offering fashion forward and trendy products acts as a catalyst for attracting more customers.
Apart from these, Dillard’s continues to generate strong free cash flows and focuses on returning value to its shareholders. In the first nine months of fiscal 2018, the company generated operating cash flows of $69.7 million and paid $8.4 million in dividends.
Additionally, the company bought back roughly 0.7 million shares for $54 million in the fiscal third quarter. As of Nov 3, 2018, the company had share buyback authorization of $442.9 million remaining under its $500-million share repurchase program announced in March 2018.
Growth Expectations
Growth prospects for Dillard’s look encouraging. Earnings estimates for fiscal 2018 and 2019 have moved up in the past month. The Zacks Consensus Estimate for fiscal 2018 has increased by a penny to $5.74, while the same for fiscal 2019 has moved up 8 cents to $5.50.
Genesco, Inc. (GCO - Free Report) has long-term earnings per share growth rate of 5% and a Zacks Rank #1.
Boot Barn Holdings (BOOT - Free Report) has long-term earnings per share growth rate of 23% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Here's Why Investors Should Buy Dillard's Stock Right Now
Dillard’s Inc. (DDS - Free Report) is an appropriate investment option, as it is well poised for growth on the back of solid prospects such as inventory management initiatives, increased trendy product offerings and shareholder friendly moves. Its efforts to capitalize on growth opportunities in physical stores and e-commerce also bode well.
Moreover, this Zacks Rank #2 (Buy) company’s shares have gained 10.9%, against the industry’s decline of 2.1%. Additionally, the company has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer best investment opportunities.
Let's see what makes Dillard’s stock a lucrative pick at the moment.
What’s Working in Favor of the Stock?
Dillard’s is well positioned to benefit from growth opportunities in both its brick-and-mortar stores and e-commerce business. This will help retain existing customers and attract new ones. The company is making efforts to boost growth across its e-commerce business. It is focusing on enhancing merchandise assortments and effective inventory management. Going forward, we expect the company to gain from its focus on increasing productivity at existing stores, developing a leading omni-channel platform and enhancing its domestic operations.
Further, the company offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. Moreover, Dillard’s is focused on offering fashionable products to its customers and adding value through exceptional customer care service. We believe that the company’s strategy of offering fashion forward and trendy products acts as a catalyst for attracting more customers.
Apart from these, Dillard’s continues to generate strong free cash flows and focuses on returning value to its shareholders. In the first nine months of fiscal 2018, the company generated operating cash flows of $69.7 million and paid $8.4 million in dividends.
Additionally, the company bought back roughly 0.7 million shares for $54 million in the fiscal third quarter. As of Nov 3, 2018, the company had share buyback authorization of $442.9 million remaining under its $500-million share repurchase program announced in March 2018.
Growth Expectations
Growth prospects for Dillard’s look encouraging. Earnings estimates for fiscal 2018 and 2019 have moved up in the past month. The Zacks Consensus Estimate for fiscal 2018 has increased by a penny to $5.74, while the same for fiscal 2019 has moved up 8 cents to $5.50.
3 More Stocks Worth a Look
DSW, Inc. has long-term earnings per share growth rate of 9% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Genesco, Inc. (GCO - Free Report) has long-term earnings per share growth rate of 5% and a Zacks Rank #1.
Boot Barn Holdings (BOOT - Free Report) has long-term earnings per share growth rate of 23% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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