Dillard's (DDS) shares ended the last trading session 7.8% higher at $450.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.7% gain over the past four weeks.
The company is benefiting from its ongoing efforts to capture growth opportunities in brick-and-mortar and e-commerce businesses, enhancing its customer base and boosting performance. The company is focused on maintaining stringent expense controls, which helped deliver better-than-expected earnings. The company’s commitment to reward shareholders with share buybacks and dividend payouts also looks promising.
This department store operator is expected to post quarterly earnings of $3.47 per share in its upcoming report, which represents a year-over-year change of -24.4%. Revenues are expected to be $1.51 billion, up 1.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Dillard's, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DDS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Dillard's is part of the Zacks Retail - Regional Department Stores industry. Macy's M, another stock in the same industry, closed the last trading session 5.7% higher at $12.33. M has returned 3% in the past month.
For Macy's, the consensus EPS estimate for the upcoming report has changed -14.3% over the past month to $0.18. This represents a change of -66% from what the company reported a year ago. Macy's currently has a Zacks Rank of #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
