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Is Dillard's (DDS) Stock Outpacing Its Retail-Wholesale Peers This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Dillard's (DDS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Dillard's is one of 230 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Dillard's is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DDS' full-year earnings has moved 47.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, DDS has returned 11.5% so far this year. At the same time, Retail-Wholesale stocks have lost an average of 28.8%. This means that Dillard's is performing better than its sector in terms of year-to-date returns.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Dollar Tree (DLTR - Free Report) . The stock is up 6.8% year-to-date.

The consensus estimate for Dollar Tree's current year EPS has increased 3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Dillard's belongs to the Retail - Regional Department Stores industry, a group that includes 3 individual stocks and currently sits at #104 in the Zacks Industry Rank. On average, stocks in this group have lost 12.1% this year, meaning that DDS is performing better in terms of year-to-date returns.

In contrast, Dollar Tree falls under the Retail - Discount Stores industry. Currently, this industry has 8 stocks and is ranked #228. Since the beginning of the year, the industry has moved -23%.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Dillard's and Dollar Tree as they attempt to continue their solid performance.


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