Dillard's (DDS) Stock Moves -1.35%: What You Should Know
Dillard's (DDS) closed the most recent trading day at $303.81, moving -1.35% from the previous trading session. This move was narrower than the S&P 500's daily loss of 3.63%. Elsewhere, the Dow lost 2.77%, while the tech-heavy Nasdaq lost 0.19%.
Heading into today, shares of the department store operator had gained 14.74% over the past month, outpacing the Retail-Wholesale sector's loss of 7.2% and the S&P 500's loss of 6.15% in that time.
Wall Street will be looking for positivity from Dillard's as it approaches its next earnings report date. The company is expected to report EPS of $5.36, down 15.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, up 16.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.94 per share and revenue of $6.8 billion. These totals would mark changes of -55.21% and +4.67%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Dillard's. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dillard's is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Dillard's is currently trading at a Forward P/E ratio of 17.17. Its industry sports an average Forward P/E of 8.24, so we one might conclude that Dillard's is trading at a premium comparatively.
Also, we should mention that DDS has a PEG ratio of 1.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Regional Department Stores was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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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