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Dillard's (DDS) Outpaces Stock Market Gains: What You Should Know

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Dillard's (DDS - Free Report) closed at $186.80 in the latest trading session, marking a +1.72% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.35%.

Coming into today, shares of the department store operator had gained 8.68% in the past month. In that same time, the Retail-Wholesale sector gained 3.99%, while the S&P 500 gained 3.64%.

Investors will be hoping for strength from DDS as it approaches its next earnings release. On that day, DDS is projected to report earnings of $2.45 per share, which would represent year-over-year growth of 762.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 36.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.17 per share and revenue of $5.82 billion. These totals would mark changes of +655.68% and +35.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DDS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.32% higher. DDS is currently a Zacks Rank #1 (Strong Buy).

Investors should also note DDS's current valuation metrics, including its Forward P/E ratio of 12.11. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.11.

Investors should also note that DDS has a PEG ratio of 0.5 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Regional Department Stores industry currently had an average PEG ratio of 0.72 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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