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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 at $262.94 in the latest trading session, marking a -1.9% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the department store operator had lost 10.18% over the past month. This has lagged the Retail-Wholesale sector's loss of 9.13% and the S&P 500's loss of 9.7% in that time.

Wall Street will be looking for positivity from Dillard's as it approaches its next earnings report date. In that report, analysts expect Dillard's to post earnings of $4.87 per share. This would mark a year-over-year decline of 50.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 0.14% from the year-ago period.

DDS's full-year Zacks Consensus Estimates are calling for earnings of $36.23 per share and revenue of $6.8 billion. These results would represent year-over-year changes of -9.54% and +4.79%, respectively.

Investors might also notice 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dillard's is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Dillard's currently has a Forward P/E ratio of 7.4. Its industry sports an average Forward P/E of 7.4, so we one might conclude that Dillard's is trading at a no noticeable deviation comparatively.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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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