Back to top

Image: Bigstock

Are Retail-Wholesale Stocks Lagging Dillard's (DDS) This Year?

Read MoreHide Full Article

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Dillard's is one of 227 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Dillard's is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DDS' full-year earnings has moved 38.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, DDS has gained about 31.1% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of -25.3% on a year-to-date basis. This means that Dillard's is outperforming the sector as a whole this year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Kroger (KR - Free Report) . The stock has returned 0.4% year-to-date.

For Kroger, the consensus EPS estimate for the current year has increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Dillard's is a member of the Retail - Regional Department Stores industry, which includes 3 individual companies and currently sits at #83 in the Zacks Industry Rank. This group has lost an average of 13% so far this year, so DDS is performing better in this area.

In contrast, Kroger falls under the Retail - Supermarkets industry. Currently, this industry has 9 stocks and is ranked #227. Since the beginning of the year, the industry has moved -0.7%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dillard's, Inc. (DDS) - free report >>

The Kroger Co. (KR) - free report >>

Published in