The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
DILLARD'S, INC. (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating according to our strategy based on David Dreman changed from 64% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dillard's, Inc. is a retailer of fashion apparel, cosmetics and home furnishings. The Company's segments include the operation of retail department stores (retail operations) and a general contracting construction company (construction). The retail operations segment includes the operation of its retail department stores. The construction segment includes the operations of CDI Contractors, LLC (CDI), a general contracting construction company. CDI's business includes constructing and remodeling stores for the Company. It operates approximately 280 Dillard's stores, including approximately 31 clearance centers and an Internet store offering a selection of merchandise, including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods. It operates retail department stores in approximately 29 states, primarily in the southwest, southeast and Midwest regions of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
|EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:||PASS|
|PRICE/CASH FLOW (P/CF) RATIO:||PASS|
|PRICE/BOOK (P/B) VALUE:||FAIL|
|PRICE/DIVIDEND (P/D) RATIO:||FAIL|
|RETURN ON EQUITY:||PASS|
|PRE-TAX PROFIT MARGINS:||PASS|
|LOOK AT THE TOTAL DEBT/EQUITY:||PASS|
Detailed Analysis of DILLARD'S, INC.
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.