Trade-Ideas: Dillards (DDS) Is Today's

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 a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Dillards as such a stock due to the following factors:

  • DDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.4 million.
  • DDS has traded 809,272 shares today.
  • DDS is up 3.1% today.
  • DDS was down 8.2% yesterday.

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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 16.1. 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 415,800 shares per day over the past 30 days. Dillards has a market cap of $4.5 billion and is part of the services sector and retail industry. The stock has a beta of 1.42 and a short float of 8.1% with 2.90 days to cover. Shares are up 18.9% year-to-date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dillards as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • DDS's revenue growth has slightly outpaced the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 46.40% 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.
  • 40.88% is the gross profit margin for DILLARDS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.03% is above that of the industry average.
  • Net operating cash flow has increased to $161.86 million or 18.25% when compared to the same quarter last year. In addition, DILLARDS INC has also vastly surpassed the industry average cash flow growth rate of -71.84%.
  • DILLARDS INC's earnings per share improvement from the most recent quarter was slightly positive. 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 ($7.99 versus $7.13).

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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