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Dillard's (DDS) Gains But Lags Market: What You Should Know

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In the latest trading session, Dillard's (DDS - Free Report) closed at $210.06, marking a +0.03% move from the previous day. This move lagged the S&P 500's daily gain of 1.21%.

Coming into today, shares of the department store operator had gained 2.83% in the past month. In that same time, the Retail-Wholesale sector gained 1.61%, while the S&P 500 lost 0.9%.

DDS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.82, up 290.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.27 billion, up 23.62% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.10 per share and revenue of $6.03 billion. These totals would mark changes of +1239.19% and +40.3%, respectively, from last year.

Any recent changes to analyst estimates for DDS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 32.14% higher within the past month. 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 6.75. This represents a no noticeable deviation compared to its industry's average Forward P/E of 6.75.

Also, we should mention that DDS has a PEG ratio of 0.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Regional Department Stores industry currently had an average PEG ratio of 0.53 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 1, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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