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

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Dillard's (DDS) closed at $181.81 in the latest trading session, marking a -0.89% move from the prior day. This move lagged the S&P 500's daily gain of 0.42%.

Prior to today's trading, shares of the department store operator had gained 1.42% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.87% and lagged the S&P 500's gain of 2.64% in that time.

DDS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DDS to post earnings of $2.45 per share. This would mark year-over-year growth of 762.16%. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, up 36.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.17 per share and revenue of $5.82 billion. These totals would mark changes of +655.68% and +35.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DDS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. DDS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DDS has a Forward P/E ratio of 12.1 right now. This represents a premium compared to its industry's average Forward P/E of 11.88.

Also, we should mention that DDS has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DDS's industry had an average PEG ratio of 0.65 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% 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.

To follow DDS in the coming trading sessions, be sure to utilize Zacks.com.


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