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

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Dillard's (DDS - Free Report) closed at $328.79 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.75% loss on the day. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.13%.

Prior to today's trading, shares of the department store operator had gained 19.19% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.93% and the S&P 500's gain of 4.98% in that time.

Investors will be hoping for strength from Dillard's as it approaches its next earnings release. 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $36.23 per share and revenue of $6.8 billion, which would represent changes of -9.54% and +4.79%, respectively, from the prior year.

Any recent changes to analyst estimates for Dillard's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 0.01% higher. Dillard's is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Dillard's has a Forward P/E ratio of 8.97 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 8.97.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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