Markets

DDS Stock Is Priced Right

Dillard's (NYSE: DDS ) - This chain of 300 department stores operates mostly in the South and Midwest. Management has concentrated on improving its profitability and has focused on a more attractive merchandise list while eliminating unprofitable lines. These efforts have been so successful that a number of research firms have increased their rating on the company. And earnings are estimated to be at a rate of 6%, which is greater than the industry for both 2011 and 2012.

Technically the stock broke to a new high and then retreated on profit-taking to its 50-day moving average where it should be bought. The trading target for DDS is $67 to $70.

Trade of the Day - Dillard's (NYSE:DDS)Trade of the Day Chart Key

See Sam Collins' Daily Market Outlook: One Sector You May be Able to Count On See Serge Berger's Daily Market Outlook: How High Could a Rally Take Us? See Serge Berger's Trade of the Day: Short XLI on a Relief Rally

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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