Dillards (DDS): Stock With Unusual Social Activity - TheStreet

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Dillards

(

DDS

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Dillards as such a stock due to the following factors:

  • DDS has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.90 mentions/day.
  • DDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $177.7 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on DDS:

Dillard's, Inc. operates as a fashion apparel, cosmetics, and home furnishing retailer in the United States. The company's stores offer a selection of merchandise, including fashion apparel for women, men, and children; accessories; cosmetics; home furnishings; and other consumer goods. The stock currently has a dividend yield of 0.2%. DDS has a PE ratio of 15.1. Currently there are 2 analysts that rate Dillards a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Dillards has been 570,000 shares per day over the past 30 days. Dillards has a market cap of $4.3 billion and is part of the services sector and retail industry. The stock has a beta of 1.04 and a short float of 15.9% with 2.73 days to cover. Shares are up 24.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dillards as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.91% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DDS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DILLARDS INC has improved earnings per share by 15.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DILLARDS INC increased its bottom line by earning $7.13 versus $6.89 in the prior year. This year, the market expects an improvement in earnings ($7.73 versus $7.13).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Multiline Retail industry average. The net income increased by 8.5% when compared to the same quarter one year prior, going from $50.87 million to $55.20 million.
  • Net operating cash flow has significantly increased by 84.25% to $76.06 million when compared to the same quarter last year. In addition, DILLARDS INC has also vastly surpassed the industry average cash flow growth rate of -8.14%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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