) reached a new 52-week high of $97.87 yesterday, and eventually
closed trade at $96.29. The average volume of shares traded over
the last 3 months was over 559K. Notably, this leading fashion
apparel, cosmetics and home furnishings retailer amassed a
year-to-date return of 18.3%.
Moreover, Dillard's currently trades at a forward P/E of
13.05x, a 3.5% discount to the peer group average of 13.53x. The
last traded price is 13.3% above the Zacks Consensus average
analyst price target of $85.00.
The company's strong fiscal third-quarter 2013 earnings,
healthy comparable-store sales, effective cost management and new
share repurchase program of $250 million have provided momentum
to the stock.
With a positive earnings surprise of 13% in third-quarter
fiscal 2013, the company surpassed the Zacks Consensus Estimate
for the third consecutive quarter in the trailing 4 quarters. The
average earnings surprise for the past 4 quarters was
approximately 12.2%. The company's third-quarter fiscal 2013
earnings benefited from the successful execution of its long-term
growth strategies and strength of its distinguished and varied
However, with Dillard's holding a Zacks Rank #4 (Sell),
investors should be cautious about the performance of the stock.
If we look at the company's net sales performance in the last 2
quarters, it has declined sequentially by 0.8% and 4.5% in the
third and second quarters, respectively. Moreover, the Zacks
Consensus Estimate for earnings has also been showing declining
trends with fiscal 2013 estimate waning 0.3% and fiscal 2014
estimate falling 0.6% in the last 60 days.
Other Stocks to Consider
Some better-ranked retail stocks include
Bon-Ton Stores Inc.
Finish Line Inc.
). While Bon-Ton Stores holds a Zacks Rank #1 (Strong Buy),
Macy's and Finish Line carry a Zacks Rank #2 (Buy).
BON-TON STORES (BONT): Get Free Report
DILLARDS INC-A (DDS): Free Stock Analysis
FINISH LINE-CLA (FINL): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
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