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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 $262.96 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the department store operator had gained 12.84% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.57% and the S&P 500's loss of 4.03% in that time.

Dillard's will be looking to display strength as it nears its next earnings release. In that report, analysts expect Dillard's to post earnings of $8.75 per share. This would mark year-over-year growth of 155.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 28.38% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Dillard's. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Dillard's is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Dillard's is currently trading at a Forward P/E ratio of 13.62. This represents a premium compared to its industry's average Forward P/E of 8.84.

Meanwhile, DDS's PEG ratio is currently 0.93. 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 0.93 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.

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


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