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

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In the latest trading session, Dillard's (DDS - Free Report) closed at $200.37, marking a -1.03% move from the previous day. This change lagged the S&P 500's 0.16% gain on the day.

Heading into today, shares of the department store operator had gained 6.3% over the past month, outpacing the Retail-Wholesale sector's loss of 1.73% and the S&P 500's loss of 3.32% in that time.

Wall Street will be looking for positivity from DDS as it approaches its next earnings report date. On that day, DDS is projected to report earnings of $5.82 per share, which would represent year-over-year growth of 290.6%. 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.

Investors should also note any recent changes to analyst estimates for DDS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 32.14% higher. DDS is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note DDS's current valuation metrics, including its Forward P/E ratio of 6.51. For comparison, its industry has an average Forward P/E of 6.7, which means DDS is trading at a discount to the group.

Meanwhile, DDS's PEG ratio is currently 0.51. 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 0.56 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.

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


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