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Dillard's (DDS) Dips More Than Broader Markets: What You Should Know

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Dillard's (DDS - Free Report) closed the most recent trading day at $199.93, moving -1.29% from the previous trading session. This change lagged the S&P 500's daily loss of 0.91%.

Prior to today's trading, shares of the department store operator had gained 4.67% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.64% and the S&P 500's gain of 0.01% in that time.

DDS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DDS to post earnings of $4.23 per share. This would mark year-over-year growth of 183.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 28.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.54 per share and revenue of $6.11 billion, which would represent changes of +962.27% and +42.14%, respectively, from the prior year.

Any recent changes to analyst estimates for DDS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 8.61. For comparison, its industry has an average Forward P/E of 8.61, which means DDS is trading at a no noticeable deviation to the group.

It is also worth noting that DDS currently has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.67 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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