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Dillard's (DDS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Dillard's (DDS - Free Report) closed at $321.32, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.89% gain on the day. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.

Heading into today, shares of the department store operator had lost 21.94% over the past month, lagging the Retail-Wholesale sector's loss of 5.62% and the S&P 500's loss of 3.9% 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 $8.94 per share. This would mark a year-over-year decline of 33.13%. Meanwhile, our latest consensus estimate is calling for revenue of $1.56 billion, down 3.2% from the prior-year quarter.

DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. These results would represent year-over-year changes of -30.44% and -1.45%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 29.39% higher within the past month. Dillard's is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Dillard's has a Forward P/E ratio of 9.48 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 9.48.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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