Back to top

Image: Bigstock

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

Read MoreHide Full Article

Dillard's (DDS - Free Report) closed at $395.97 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 11.35%.

Heading into today, shares of the department store operator had gained 4.66% over the past month, outpacing the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 4.49% in that time.

Investors will be hoping for strength from Dillard's as it approaches its next earnings release. The company is expected to report EPS of $8.85, down 43.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.11 billion, down 0.11% from the year-ago period.

Any recent changes to analyst estimates for Dillard's should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dillard's is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Dillard's is holding a Forward P/E ratio of 15.68. Its industry sports an average Forward P/E of 9.97, so we one might conclude that Dillard's is trading at a premium comparatively.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


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


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

Published in