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719100.0
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2019-09-27 00:00:00 UTC
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2 Cloud Stocks That Should Rain Dollars
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DDOG
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https://www.nasdaq.com/articles/2-cloud-stocks-that-should-rain-dollars-2019-09-27
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nan
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nan
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Cloud stocks have been fantastic investments over the past couple of years. For instance, since MongoDB (NASDAQ: MDB) had its IPO in October of 2017, it has returned 330% to its investors. Another cloud company, Datadog (NASDAQ: DDOG), had its IPO last week. The market has already priced in a lot of future growth for Datadog, awarding the stock a valuation 40 times higher than the company's revenues. What will the future be like for these software-as-a-service (SaaS) titans?
Source: Getty Images
A Mongo monster
MongoDB is a database company focused on the cloud. One of its competitors, Oracle (NYSE: ORCL), has a $180 billion market cap. In comparison, MongoDB is tiny at $7.4 billion. Oracle's size shows just how much money is to be made in database software (a lot). And Oracle has dominated this business for many, many years. So that's the first question a MongoDB investor needs to think about: How can our company compete against Oracle?
The answer lies in the current revolution we are witnessing in database software. There is the old school, dominated by Oracle; its software is based on SQL, or "structured query language." Oracle's software is designed for data that's in spreadsheets and other tables. And now there's the new form of database software, dominated by MongoDB, called NoSQL. This software is designed for unstructured data -- basically any data that is not in a spreadsheet. Imagine how vast that swamp is. Unstructured data includes emails, blog posts, text messages, videos, audio files, satellite images, spreadsheets themselves, and much more.
Oracle has wonderful software for manipulating data -- as long as it's in spreadsheets. If you're talking about any other form of data, NoSQL is far superior. It should surprise no one that Oracle's growth has stalled as other forms of data grow more prevalent. Meanwhile, MongoDB's growth has been spectacular. It had revenue of $99.4 million last quarter, and it's expanding revenue at 67% a year. But the real star has been Atlas, the company's database software in the cloud, which is growing by an astounding 240% a year. Almost a third of MongoDB's revenue now comes from Atlas.
Indeed, the shift to the cloud has been rocking the software industry for a few years now. It's not just Oracle that is feeling the heat. We're seeing SaaS revolutions across the entire spectrum of software, including cybersecurity, analytics, tax preparation, sales, and many more. The market has been rewarding cloud companies across the board. And yet some cloud companies (like Mongo) are going after far bigger markets than others.
For instance, Coupa Software (NASDAQ: COUP), a company that provides procurement in the cloud, has given its shareholders a 401% return since 2017. While I love Coupa, I can tell you that procurement ($38 billion) is a much smaller market than database software ($64 billion). "Mongo" is a slang word that actually means "huge" -- and the rise of unstructured data is making this market even larger. Database software is projected to grow from $64 billion today to $98 billion in four years. Oracle's lack of revenue growth suggests it's not going to see any of that future cash. MongoDB is going to capture a lot of those dollars instead.
The top dog in analytics
Datadog is another SaaS stock that is using the cloud to bring high-end software to anybody who wants it. With Datadog's software, a company can monitor every program it's using, oversee all its applications, and perform log management. Datadog is the first company to combine all three in one solution -- what it calls a "single pane of glass."
Like many cloud companies, Datadog has a "land and expand" strategy. First you get a few subscribers within a company; then, based on word of mouth, multiple people in the company start clamoring for their own subscription, too. Datadog's solution is so popular that existing customers are adding additional subscriptions all the time. The company has an astounding 146% net revenue retention rate. What that means is that in the highly unlikely event that Datadog somehow fails to add any new buyers, the company would still increase its revenue 46% next year just from its existing customers.
It's true that Datadog is going after a smaller market (analytic software) than MongoDB (database solutions). Datadog estimates its market opportunity at $35 billion. That's a little more than half as big as the opportunity MongoDB is chasing. And yet of the two companies, Datadog currently enjoys a larger market cap -- it's trading at 40 times revenues, while MongoDB's valuation is half that size.
While Datadog's shares are pricey right now, its status as the fastest-growing solution in analytics might justify such a multiple. Consider that Datadog's software currently monitors 10,000,000,000,000 events every day. Let that number sink in for a minute. And then consider that only 5% of applications in the world are currently monitored, according to Gartner.
Have no fear about Datadog, the company -- it's a winner for sure. But the stock might be another story. Comparing the two companies, I'd invest in MongoDB first. After all, the winner in databases will be a far larger company than the winner in analytics. And MongoDB is positively cheap compared to Datadog. The advantage goes to Mongo.
10 stocks we like better than MongoDB
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and MongoDB wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
Taylor Carmichael owns shares of Coupa Software and MongoDB. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool owns shares of Coupa Software. The Motley Fool has a disclosure policy.
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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Another cloud company, Datadog (NASDAQ: DDOG), had its IPO last week. Unstructured data includes emails, blog posts, text messages, videos, audio files, satellite images, spreadsheets themselves, and much more. What that means is that in the highly unlikely event that Datadog somehow fails to add any new buyers, the company would still increase its revenue 46% next year just from its existing customers.
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Another cloud company, Datadog (NASDAQ: DDOG), had its IPO last week. And now there's the new form of database software, dominated by MongoDB, called NoSQL. It's true that Datadog is going after a smaller market (analytic software) than MongoDB (database solutions).
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Another cloud company, Datadog (NASDAQ: DDOG), had its IPO last week. The market has already priced in a lot of future growth for Datadog, awarding the stock a valuation 40 times higher than the company's revenues. It's true that Datadog is going after a smaller market (analytic software) than MongoDB (database solutions).
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Another cloud company, Datadog (NASDAQ: DDOG), had its IPO last week. The market has already priced in a lot of future growth for Datadog, awarding the stock a valuation 40 times higher than the company's revenues. But the real star has been Atlas, the company's database software in the cloud, which is growing by an astounding 240% a year.
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28d7b17d-2225-4071-829b-64e0cc09722c
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719101.0
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2019-09-24 00:00:00 UTC
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3 New Tech IPOs, Explained
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DDOG
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https://www.nasdaq.com/articles/3-new-tech-ipos-explained-2019-09-24
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nan
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nan
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The past month has seen three under-the-radar tech companies go public. In this episode of Industry Focus: Tech, host Dylan Lewis and analyst Joey Solitro dive into SmileDirectClub (NASDAQ: SDC), Datadog (NASDAQ: DDOG), and Cloudflare (NYSE: NET).
Tune in to learn what each business does; why SmileDirectClub is tech-y enough to warrant some time on this show; how the financials look for these three; how investors can tell all these similar-sounding software-as-a-service companies apart and really figure out who's best in class; what risks to keep an eye on, especially with Cloudflare; some general rules of thumb for long-term IPO investing; and more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
{% render_component 'sa-returns-as-of' type='rg'%}
This video was recorded on Sept. 20, 2019.
Dylan Lewis: Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. It's Friday, September 20th and we're talking about some fairly new publicly traded companies. I'm your host Dylan Lewis, I've got premium analyst Joey Solitro with me in the studio. Joey, what's been going on, man? You've been all over the place the last couple weeks. Podcasts, YouTube lives. I don't know how you're doing it.
Joey Solitro: My companies are all the rage these days so I'm getting some extra attention. I'm loving it. As long as IPOs and SaaS stay in focus, I'll be here.
Lewis: We're happy to have you here. We're going to be talking about some tech companies, some ones that you follow. If folks are interested in the SaaS space, you did that YouTube Live a couple weeks back with Chris and Jason Moser. That exists over on the YouTube channel, in case people want to check that out.
Solitro: Check it out.
Lewis: Check it out. We're talking about three companies today that have gone public in the past month, which is kind of wild. People tend to really pay attention to the IPO calendar when the big names go public -- the Lyfts, Ubers, Pinterests of the world. The reality is, companies are going public all the time.
Solitro: Yeah, I wish people would stop paying so much attention so I could get a decent valuation here and there. But I'll take them when I can get them.
Lewis: [laughs] We're going to cover these in chronological order. We've got Smile Direct, Cloudflare, and Datadog. Definitely three companies that we're going to have to explain a little bit. They don't have the brand name recognition of some of the other IPOs we've talked about in the past. Let's talk about Smile Direct Club first.
Solitro: I'm sure a lot of people know the Invisalign brand for braces. What these guys have done is, Invisalign is actually a supplier of theirs, where they're going direct to consumer with these. They'll have their mold kits, or you can go into one of their Smile shops. They actually have partnerships with CVS and Walgreens, so they're going to start popping up in there. And basically, they take a scan, or they take this mold of your teeth, they ship it to their orthodontists over in Costa Rica, and they create this plan. And then it comes back to a local orthodontist near you that says, "Yeah, they're a candidate for this. Let's give them the green light to go." And then within three to four weeks, you have your new, clear aligners.
The cool thing about them is, they're reducing the cost of doing this. I was doing some research, and traditional braces, whether metal or through Invisalign, is $5,000 to $8,000. Smile Direct is $1,895. They broke it down below $2,000, and you're going to be wearing these for five to 10 months instead of 12 to 24 months. Shorter time, less money, you don't have to waste your time going to the orthodontist 10 to 15 times. It's just a great business model. The growth is real with this one.
Lewis: The way that I think about this one is Warby Parker, but for teledentistry.
Solitro: Exactly.
Lewis: They made their money, and they really got into a market, by saying, "We can cut out a lot of the costs that come with eyewear. We don't need all these flashy retail locations." They ultimately decided to do that. But for a while, they were saying, "We're going to cut all that stuff out, we're going to bring the cost down, because we're doing a direct to consumer model and we don't have nearly as much overhead as some of the other guys out there." That's what Smile Direct has done. The difference is, they're doing it with dentistry.
Solitro: Pretty much, yeah. If you own your supply chain, you can completely reduce the cost. You could go to an orthodontist who buys materials from this person, or has this person make their braces or their aligners. Or, you can go to this one company that cut out a lot of the fat, reduced the costs, and it's going to come directly to you.
Lewis: You mentioned the growth. There are some pretty staggering numbers if you look at the financials. They were up 184% year over year in 2018, over 100% year over year growth in revenue the past two quarters. It seems like this concept is catching on. When you come into the marketplace at a lower price, people tend to pay attention.
Solitro: The other thing, on top of the very impressive growth, gross margin over 75%. I was not expecting that. I thought, based on this growth and what they're doing, they're probably under 50%. I was shocked. And then you see they're aiming for I think was 80% to 85% gross margins long-term. That's not that much of a stretch.
Lewis: Some other stuff that I really like with this business -- people might be surprised that we're talking about it on a tech show, because this is, in some ways, a consumer goods company. But ultimately, the reason that they're able to offer these lower prices is, they've figured out a more integrated system to make all this happen. I'm going to give them a tech check because of that. You look at what they have in terms of inventory, it's tiny. They have very little inventory given what they do in sales. $13 million in inventory at the end of a period where the company did almost $600 million in trailing 12-month sales. You don't see that too often for anything in the consumer goods space.
Solitro: No. That's one thing I don't play with -- I don't like companies with inventory. I love my SaaS companies. If you have a product housed and you have to sell it, and it becomes this toxic inventory, it's just something I've never had success investing in. Traditional consumer goods with these heavy inventories, retailers. So, yes, to see this, that's definitely what I would consider tech because teledentistry, it's almost like Teladoc, where they're saying, "Instead of going to the doctor's office, we'll bring the doctor's office to you." They say, "Instead of going to the orthodontist, we'll bring it to you and make it much easier and much cheaper."
Lewis: And if there's anything we've learned over the last couple years, it's that people will happily take things delivered to their doorstep, pretty much regardless of the industry.
Solitro: I think I'm a very active person, but if you tell me, "Hey, you don't have to go to the grocery store, you can go through Instacart," or, "You don't have to go to the doctor, use Teladoc," it's one less person for me to have to see and pay an inflated amount of money. I'll pinch pennies here and there. Plus, I have two daughters and a son on the way. You're telling me I could spend $1,900 for braces instead of $5,000 to $8,000 apiece. I know my wife was telling me she had to wear braces for over two years to have some correction. I can only imagine how much that was costing her parents. This is just a win-win on both sides for me.
Lewis: Good for consumers. And it seems like it's going to be good for them as a business as well. There's one thing I think that's worth highlighting here. They are not profitable, as you might expect for a company that has recently gone public. The spend is coming on acquisition. That's really what's taking them into the negatives. A lot in SG&A and marketing. We talk about software businesses a lot. Some of the companies we're going to be talking about check this box as well. You spend a ton early on to scale your company. And then you have the lifetime value of the customers that you bring. Takeover. That exceeds whatever you spent to bring those customers in. I buy that narrative for a software business. I worry a little bit with a more consumer packaged product. If someone buys something, or they have this orthodontics kit delivered to them, they aren't a lifetime customer, necessarily. They're being serviced themselves. Once they have their teeth all in order, that might be it.
Solitro: Well, then you have the retainers. They also do the retainer business. You do have that. One thing I like to say is, they're in the ultimate land grab right now. They have a couple competitors. I know Candid is a notable one. I was looking through their S-1. I think they had three other competitors that are like them. So you have to remember, Invisalign, their patent came off in late 2017. 2018 was pretty much where these guys had to start pumping out as much marketing as they could to acquire as many customers as they could. I think they've been in operation since 2014. It's pretty much been in preparation for this ultimate land grab that's going on right now. It's almost like you have to be in the market for it. If you search invisible braces or Invisalign, of course these companies are going to pop up, because that is becoming more popular. Especially for older people that didn't have braces in middle school or high school, they don't want to be walking around with mouths full of metal right now. That's definitely what I would be doing, I'd go the invisible route, especially if you're saving money and it's less time. So I think people are going to be looking for those alternatives. And it's that land grab. That's the only term I could really use.
Lewis: The counter to that point is, if you have a family of three, you spend to get the first kid, from a marketing perspective. And if a family has three and all three need braces, well, there you go, you're fine. You can get the word of mouth going, and then the business results will just take over.
We're going to switch gears and talk more traditionally tech here. Our second company that has gone public in the last month is Cloudflare. This one's going to need a little bit more explanation, Joey. [laughs]
Solitro: Even for me. [laughs] They're basically a cloud platform. They make sure all of your mission critical applications are operating as they should to prevent downtime for your website. In the increasingly digital world, outages can be the death of your company. We talked about the same thing with PagerDuty, where they would alert the exact person that you would need to fix a specific problem. These guys help you monitor everything and also they prevent cyber-attacks. I was looking through their S-1. They say they block 44 billion cyber threats from 20 million internet properties daily.
Lewis: Which is baffling.
Solitro: Yes. I thought that'd be an annual rate. 44 billion cyber threats are blocked from 20 million properties daily. And then, they have customers that include SaaS superstars, Adobe, HubSpot. Then you've even got big retail names like Shopify and Walmart. But then you've even got, they're doing this for the FBI, the U.S. Department of State. If organizations like that trust Cloudflare to do what they do, they must have a great product. They have 74,000 customers right now. They've added 7,000 this year. They've still got a lot of companies that can be added to this mix.
Lewis: Working with the government is generally a pretty good stamp of approval, huh?
Solitro: Especially the FBI and U.S. Department of State. That's no joke.
Lewis: For this company, all of that has materialized into a pretty good growth story, as you might imagine. The tailwinds here are very strong. I don't think those cyber-attacks are going anywhere. If anything, I think they're probably going to become more prevalent as we move forward. This was a company that actually enjoyed reaccelerated revenue growth. For the first half of 2019, revenue hit 48% year on year versus a 2018 growth rate of 43%. You love to see that acceleration.
Solitro: I love to see accelerating revenue growth. It definitely shows that either the business has been getting more attention from the companies that it should, or their marketing spend was going as they wanted. I always go back to our favorite statistic, the net dollar retention rate. That's been over 110% for the last eight quarters. Their existing customers are consistently spending more. And, they are adding a good amount of customers. That's when you get that beautiful cohort analysis, where they're adding more clients, existing ones are spending more. This accelerated revenue growth, while it might decelerate starting next year, it's still well over 40%. I think the compound annual growth rate since 2016 was over 50%. That's very impressive.
Lewis: When you can grow your business without having to add any new customers, that's awesome. And then, other new customers that are coming in are gravy. That shows you are building a product that people want, people are increasing their spend with you, and they're very happy as customers.
We teased this, but this company is losing money. It's because of sales and marketing. They are investing heavily, much like Smile Direct. That's kind of going to be the theme of today's show, is investing heavily because the opportunity is there for all these businesses.
Solitro: Exactly. There are some red flags that come with Cloudflare that I don't traditionally see with the SaaS companies that I follow. This is one of the reasons I did not purchase Cloudflare. I actually own Smile Direct, for full disclosure. But when it comes to Cloudflare, they've had two mass outages in the last year. For a company that is supposed to keep my company up and running and prevent outages, to have two outages in the last year? That's pretty bad. And then, they stated in the last week that they may have violated U.S. sanctions by providing services to terrorist organizations and drug traffickers. Their defense over this is, "Hey, we couldn't say this going to the IPO because we were in a quiet period." I think, well, how convenient for them.
And for them to not have known that ahead of the filing ... I feel like you should know your customer base better, or do your due diligence on them, and say, "We're going into the biggest liquidity event in our history. Maybe we should make sure we're not servicing some terrorist organizations."
Lewis: Yeah. The generous interpretation of that, just to dive into the idea of a quiet period for a second, is, when you have this filing out there, management cannot go out and make certain comments about the company. It's something that is part of the IPO process. If they were to have discovered it, truly, during this period, management would have been in a position where they probably couldn't have talked about it. But, I mean, yeah ... this seems like a pretty big deal.
Solitro: It's the ultimate "come on, man." I was on the fence about buying this one. As we've talked about previously, I buy a lot of IPOs on day one. I have a completely different investment strategy than most people and even most Fools here. But that was the one that pushed me over the fence, like, "Yeah, let's wait on this one."
Lewis: Yeah, I can understand that. [laughs] There's some red flags there.
Solitro: There's so many great tech companies out there, I didn't have to force this one.
Lewis: I feel you. OK, we're going to talk about Datadog, a company that just went public this week, we had to get up to speed quickly on this one because shares just hit the public markets this week, Joey.
Solitro: Datadog is a monitoring and analytics platform. What they're doing is, they give you a real-time insight into your company's entire technology stack. You could be looking at all your different servers, applications, all your different cloud-based softwares, and you're seeing it in one spot. It's almost like giving you a bird's eye view of your entire organization. You know, if something's going wrong, where it's at, it allows you to search it. It's basically that key player in digital transformation and cloud migration. It feels like every software company we talk about does the same thing. It's focused on the digital transformation and making it better for customers or businesses finding your service. Datadog, they've made it easier, and put it all on one platform.
Lewis: Even as someone who follows this space -- I know you and I both talked about this before -- it can be tough to really separate what a lot of these SaaS companies do. I know that you have some tricks for getting to the root of, "Who's truly the best in class provider here?" There are some company metrics that you can help do that with. I know that you like to ask around the Fool for some of the subject matter experts that work in spaces. You have a couple other tricks for, also, getting to the bottom of this stuff with online forums and things like that.
Solitro: How I'll originally go through an S-1 is, I'll completely ignore what a company does. I might know, it's a tech company. I'll look at the numbers first. And when I see over 80% revenue growth and net dollar retention over 140%, a growing customer base -- everything about Data dog from the financial standpoint, I loved. Then I back into, now let's find out what these guys do and what kind of competitors there are. Then, seeing, with the rise of data, and I think it's going to be a five-fold increase in the amount of data companies have to be analyzing over the next 10 years, finding companies that can make sense of it, monitor it, and make the digital process easier, is key. So then I go to tech players here at The Fool. Of course, we use Datadog. Then I'll check sites like G2 Crowd or Gartner Insights, and I'll see what these other developers, people that actually use software, say about these companies. I think it was like 4.5 stars. I'm seeing all these as-good-as-it-gets ratings in comparison to their key competitors. So then I'll look at the competitors. And yeah, it checks out, the reviews aren't as good. They're basically saying, because Datadog is unified platform, where all the other major players integrate within, it creates that all-in-one solution, which is another keyword, I always like to look for. All-in-one solution. They do what other people do, but they combine it all. There might be a competitor for a specific division, but not the entire company.
Lewis: It's great to be a full service provider. It's a pretty excellent space to be in. Listeners, tell us if you've heard this one before: they're a SaaS company, they've got great margins, and they're losing money because they're investing heavily in SG&A. Is that pretty much the easiest way to sum up the financials, Joey?
Solitro: Yeah, pretty much. But I will say -- this wasn't confirmed by management or anything -- I have seen that they do have previous years where they did reach profitability. I found a couple of different blog posts from insiders, but they wouldn't confirm because they weren't supposed to be saying it, but it's like, three of the last seven years, they were profitable. And you look at the margins, they're not burning a lot of cash, not losing a lot of money. It almost seems like they ramped up spend going into this IPO to boost those growth rates, which makes sense. But even then, their net dollar retention over the last 12 months was 146%. In 2017, it was 141%. In 2018, 151%. Those are statistics where I fell in love going through the financials. I don't care what this company does, I'm going to find out a way to love it.
Lewis: [laughs] I think at some point, we may have to build a small shrine to the dollar net retention figure in the studio so that we can occasionally bow to it.
Solitro: Over 140%! That's almost unheard of these days! There's only a few companies. This one, and I think Twilio, and I think PagerDuty was up there, too. Those three companies lately got my attention. Definitely a great statistic.
Lewis: It's the kind of thing you almost have to do a double take on. It's proof. You go to the forums, and you read, "OK, this seems to be a best in class provider." And that's borne out in the metrics as well. You don't get a number like that unless you are proving your value to customers and they're increasing their spend with you.
Solitro: Exactly. I was going through the timeline of the company. It started as this base platform. They did one thing. Then they added another solution. And they've added three new solutions in the last three years. People trust the brand. They know that they're very good at what they do. So then they're like, "We added this to our platform. It's an easy bolt-on. We think you want it, too." That's great to see. That could be the primary reason why we have these three great net dollar retention rates. That could be exactly why they waited to go public, so they could say, "Maybe 2016 was 120%," or something like that; it couldn't have been as great. But they knew, "If we ramp up spend, go public in 2019, we're going to have some great statistics to show for it."
Lewis: It actually brings us to an interesting point here. IPOs can serve a lot of different purposes. Companies can be looking to get a lot of different things out of IPOs. At core, they are supposed to be capital raising events. But it seems to me, companies like Zoom and Datadog in particular, I'm thinking about here, these were launch parties for these companies. I think people that were in these industries probably knew the businesses fairly well. But for people that are investors or just business enthusiasts, they were probably names that they didn't know. But you start throwing some big numbers out there like this, you start ramping up your sales and marketing spend on the customer acquisition side, people are going to start to learn your name, especially when you're going public.
Solitro: Absolutely. And yeah, I think that's where a lot of these investment bankers come into play. They have their value for processes like this. But I also think, with how popular IPOs are getting these days, more retail investors are checking those IPO boards, seeing what's coming, and actually clicking the S-1s. I think we're doing a great job of spotlighting companies coming down the pike. For companies like Datadog, with these type of statistics -- now, you wouldn't think a cloud player would get as much attention as they have. But I think that's just how we're all growing as investors, and becoming more aware of the companies coming public.
Lewis: Yeah, we've been seeing all these headlines about private companies for such a long time. People are eager to get their hands on them.
One thing I did want to get your take on before we wrap up is, people will occasionally look at a company that's gone public and say, "It's trading 15% where shares were offered. That seems like a broken IPO to me." I think that it's worth diving into that and understanding the incentives of a public offering.
Solitro: I hate the term broken IPO or mispricing. If a company's stock drops, it doesn't mean it's a broken company in any way. How I like to always talk about is, say you run a bakery. You spend years sourcing the right ingredients, perfecting your recipes. Then you go to open up shop. But then someone's like, "We'll do that offering to the public. We'll run that front of the shop. We'll buy your pastry for $10 that cost you $3." And you're thinking, "Holy crap, yeah, that's a lot of money. Let's do that." Then you walk out on day one, and you look up at the board, and it's $18. And you're thinking, "How much money did I just leave on the table?
Now, if you do a secondary offering down the road, or anything like that, you might want that $18, where then they just jack it up to $24, whatever the market's paying for it. That's where I really encourage companies for these direct listings that they can -- now, if they need to raise capital, by all means, price based on what the market's saying. Seeing these big pops doesn't mean it's a great IPO. It just means those investment bankers and their very wealthy clients are now [wealthier]. You can see it as, these companies build themselves up over a decade, and then these investment banks make their clients as much money in one day as those people made over the last 10 years. I'm not a huge fan of these IPO huge pops, because I feel like they left more money on the table. But a company like Smile Direct, I think that is a phenomenal company, I bought it myself because I thought the market reacted incorrectly. To call that one a broken IPO just doesn't make sense. They made more money on that day of the IPO. Sorry the investment banks and their clients don't have as much money in their pocket as they did when they bought on day one. But hey, you have to lose sometime. If you're not focused on the long term, then you shouldn't have bought the company in the first place. But I'm looking 10, 25 years out, and I'm very confident with where I purchased.
Lewis: Yeah, there are different incentives for pretty much everyone along the chain. The one thing I will say with the broken IPO thing is, it's a bummer when shares are finally publicly available, and retail investors get in, and they have a chance to finally buy a company like Lyft or Uber, and so often, those big names are people's first experience with investing. They're like, "Oh, I take Uber all the time! I have to get my hands on this, it's a no-brainer!" And sometimes people get bit by that. And it's unfortunate. It's a painful investing lesson. But when you're thinking about how companies raise capital, yeah, you want to be maxing out the valuation that you're exchanging your equity for.
Solitro: Yeah, that's the issue. Companies used to come public -- I think Amazon came public in the third year of their existence. I think eBay was within the first five years. A lot of these companies used to come public so quick, because that was how they accessed capital. Now, there is so much dumb money in Silicon Valley. You could be raising a billion dollars, and you're two years old. And hey, we can push off an IPO for 10, 13 years. Times have changed with how companies raise capital and where they can access it. It's great for innovation. But for retail investors, we have to wait a very long time, and we might have to pay three, four, five times as much as we would if they would have gone public earlier.
But you always want to focus on the long term. I always say, take that 10-year stance. If you're like me, take that 10-25-year stance. Take Datadog, it's valued around $11 billion. 41X the last 12 months' sales. Pretty hefty. But if they keep these growth rates up, if they can keep it over 60% over the next three years, that's not that bad. If you're focused on the long term, and you're actually invested in the company, not just for the next earnings report, then I think you'll do well.
Lewis: We talked about three companies. Before we wrap up here, I do want to ask you, I'm going to have to force rank those. Where are you putting them? Which one's your top choice here? Which one are you a little bit less excited about?
Solitro: I had a feeling you would do that. I own Smile Direct. I can say I did that because it was only trading at about 12X sales for over 100% growth. They have the highest growth of them all and the lowest multiple. That was an easy one for me. Then I would go Datadog. Yes, it's more overvalued than Cloudflare. But I think the runway is more significant for them. Cloudflare, I feel like a lot of companies will continue to do this, I feel like I've read so much about these companies that enhance performance and give you real-time insight into mission critical applications. I feel like their competitive moat isn't as significant as a Datadog. So, I would go Datadog number two then Cloudflare number three, even though Cloudflare has a, quotes, "better" valuation than Datadog.
Lewis: I think it's reasonable to see the dust settle a little bit on some of the things that are outstanding right now with Cloudflare.
Solitro: Absolutely. I'm going to wait for both these to come back down to earth a little bit. Now, Datadog may never do that. Say they just blow out the earnings report then keeps raging on. Then I'll be standing there clapping and rooting for them. But Smile Direct's the one that I could see the long-term runway and actually get behind the valuation think and think the market has this one wrong.
Lewis: What's the investing maxim? You pay for quality? [laughs] You know? When businesses are putting up good results, you're going to have to pay a premium. Joey, thanks for hopping on today's show!
Solitro: Thank you very much for having me!
Lewis: It was a pleasure. Listeners, that's going to do it for this episode of Industry Focus. If you have any questions or you want to reach out and say hey, you can shoot us an email over at industryfocus@fool.com, or you can tweet us @MFIndustryFocus. If you want more of our stuff, subscribe on iTunes, or even catch a ton of bonus stuff over on YouTube. There's actually a video on our channel breaking down all the different elements of the IPO chain and the incentives there. Check that out. As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against stocks mentioned, so don't buy or sell anything based solely on what you hear. Thanks to Austin Morgan for all his work behind the glass today. For Joey Solitro, I'm Dylan Lewis, thanks for listening and Fool on!
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dylan Lewis owns shares of AMZN, SHOP, and TWLO. Joey Solitro owns shares of AMZN, PD, PINS, SHOP, SmileDirectClub, and TWLO. The Motley Fool owns shares of and recommends AMZN, HUBS, PD, PINS, SHOP, TDOC, TWLO, and ZM. The Motley Fool has the following options: short October 2019 $37 calls on EBAY and long January 2021 $18 calls on EBAY. The Motley Fool recommends ADBE, CVS, EBAY, and UBER. The Motley Fool has a disclosure policy.
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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In this episode of Industry Focus: Tech, host Dylan Lewis and analyst Joey Solitro dive into SmileDirectClub (NASDAQ: SDC), Datadog (NASDAQ: DDOG), and Cloudflare (NYSE: NET). Tune in to learn what each business does; why SmileDirectClub is tech-y enough to warrant some time on this show; how the financials look for these three; how investors can tell all these similar-sounding software-as-a-service companies apart and really figure out who's best in class; what risks to keep an eye on, especially with Cloudflare; some general rules of thumb for long-term IPO investing; and more. Lewis: [laughs] I think at some point, we may have to build a small shrine to the dollar net retention figure in the studio so that we can occasionally bow to it.
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In this episode of Industry Focus: Tech, host Dylan Lewis and analyst Joey Solitro dive into SmileDirectClub (NASDAQ: SDC), Datadog (NASDAQ: DDOG), and Cloudflare (NYSE: NET). Joey Solitro owns shares of AMZN, PD, PINS, SHOP, SmileDirectClub, and TWLO. The Motley Fool owns shares of and recommends AMZN, HUBS, PD, PINS, SHOP, TDOC, TWLO, and ZM.
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In this episode of Industry Focus: Tech, host Dylan Lewis and analyst Joey Solitro dive into SmileDirectClub (NASDAQ: SDC), Datadog (NASDAQ: DDOG), and Cloudflare (NYSE: NET). Lewis: Some other stuff that I really like with this business -- people might be surprised that we're talking about it on a tech show, because this is, in some ways, a consumer goods company. If a company's stock drops, it doesn't mean it's a broken company in any way.
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In this episode of Industry Focus: Tech, host Dylan Lewis and analyst Joey Solitro dive into SmileDirectClub (NASDAQ: SDC), Datadog (NASDAQ: DDOG), and Cloudflare (NYSE: NET). Solitro: The other thing, on top of the very impressive growth, gross margin over 75%. There's only a few companies.
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2019-09-24 00:00:00 UTC
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Tuesday 9/24 Insider Buying Report: VBIV, DDOG
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DDOG
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https://www.nasdaq.com/articles/tuesday-9-24-insider-buying-report%3A-vbiv-ddog-2019-09-24
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nan
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nan
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Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At VBI Vaccines (VBIV), a filing with the SEC revealed that on Thursday, Director Steven Gillis purchased 10,000,000 shares of VBIV, at a cost of $0.50 each, for a total investment of $5M. So far Gillis is in the green, up about 7.2% on their purchase based on today's trading high of $0.54. VBI Vaccines is trading up about 2.4% on the day Tuesday.
And at Datadog (DDOG), there was insider buying on Monday, by Chief Revenue Officer Dan Fougere who purchased 15,000 shares at a cost of $27.00 each, for a total investment of $405,000. This purchase marks the first one filed by Fougere in the past year. Datadog is trading up about 2.4% on the day Tuesday. So far Fougere is in the green, up about 37.5% on their buy based on today's trading high of $37.12.
VIDEO: Tuesday 9/24 Insider Buying Report: VBIV, DDOG
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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And at Datadog (DDOG), there was insider buying on Monday, by Chief Revenue Officer Dan Fougere who purchased 15,000 shares at a cost of $27.00 each, for a total investment of $405,000. VIDEO: Tuesday 9/24 Insider Buying Report: VBIV, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money.
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VIDEO: Tuesday 9/24 Insider Buying Report: VBIV, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And at Datadog (DDOG), there was insider buying on Monday, by Chief Revenue Officer Dan Fougere who purchased 15,000 shares at a cost of $27.00 each, for a total investment of $405,000. So far Gillis is in the green, up about 7.2% on their purchase based on today's trading high of $0.54.
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And at Datadog (DDOG), there was insider buying on Monday, by Chief Revenue Officer Dan Fougere who purchased 15,000 shares at a cost of $27.00 each, for a total investment of $405,000. VIDEO: Tuesday 9/24 Insider Buying Report: VBIV, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money.
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And at Datadog (DDOG), there was insider buying on Monday, by Chief Revenue Officer Dan Fougere who purchased 15,000 shares at a cost of $27.00 each, for a total investment of $405,000. VIDEO: Tuesday 9/24 Insider Buying Report: VBIV, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At VBI Vaccines (VBIV), a filing with the SEC revealed that on Thursday, Director Steven Gillis purchased 10,000,000 shares of VBIV, at a cost of $0.50 each, for a total investment of $5M.
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2006d746-5ed3-441d-90ab-7f7d6de435f4
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719103.0
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2019-09-23 00:00:00 UTC
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IPO Fever, Big Auto Blues, and the Future of Self-Driving
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DDOG
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https://www.nasdaq.com/articles/ipo-fever-big-auto-blues-and-the-future-of-self-driving-2019-09-23
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nan
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nan
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In this episode of Motley Fool Money, analysts Emily Flippen, Aaron Bush, and Ron Gross discuss some of last week's biggest business news. Apple (NASDAQ: AAPL) Arcade priced at just $5 a month, and it has potential to be massive for the tech titan. Airbnb announced plans to go public in 2020. WeWork's contentious IPO was pushed back until at least mid-October, if not forever. FedEx's (NYSE: FDX) bad quarter speaks to more than just one-off stresses. Plus, news from Datadog (NASDAQ: DDOG), Yum! Brands (NYSE: YUM), General Mills (NYSE: GIS), and more. And, as always, the analysts share some stocks on their radar.
Stay tuned for an interview with Fool.com senior auto specialist John Rosevear about the GM (NYSE: GM)/UAW strike, self-driving and electric cars, and what investors should be watching in the auto industry.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Sept. 20, 2019.
Chris Hill: We begin with a bellwether stock having a bad week. Fourth quarter profits for FedEx came in lower than expected. They cut guidance for the new fiscal year. Emily, we've seen FedEx have bad quarters before. This feels different for a few reasons, not the least of which is the fact that Fred Smith, the CEO, in the past basically downplayed Amazon (NASDAQ: AMZN) as a competitor in the shipping space. That was not the case this time.
Emily Flippen: Exactly. Amazon actually pulled out of their agreements with FedEx both for their air transport and ground transport earlier this year. FedEx definitely downplayed how important that was to their business. They said, "Amazon only makes up about 1% of our revenue, we're not going to see much of a change." And then, when they reported this week, it was very much a different tone, saying, "Oh, the escalating trade war plus Amazon really hampered us." And they hampered them to the tune of a 20% decrease in their earnings estimate for this year, which was already a year over year decline. Definitely a challenge for FedEx.
Ron Gross: Here's my question. In today's day and age, is FedEx still a bellwether? The world has moved on, and FedEx is still FedEx. Maybe we should stop looking to them as a sign of what's to come from the overall economy.
Hill: I think your question points to part of what FedEx is dealing with, and why this one feels a little different. It is the increased competition from Amazon. It's the fact that their acquisition of TNT Express in Europe didn't really translate to the bottom line like the way they were hoping it would. And let's face it, they're in a tough business. Global shipping is a really tough business to be in. There are companies that name check the trade war as being a reason why they're not doing so well. I feel like it's warranted and FedEx's case.
Flippen: Actually, if you look at what FedEx painted in a positive light during the call, they're saying, "Hey, we're operating in a growing space." They're saying that 90% of total market volume growth is going to come from e-commerce through 2026. And that 59% of that market's going to be addressable to them so that they could ship. But that's a decrease from 65% today. So really, all investors took away from that was, "Oh, they're in a potentially growing industry, which would indicate maybe they're still a bellwether stock, but they're losing their market share to Amazon."
Aaron Bush: One of my pet peeves, I'm learning, as an investor is when management says something isn't a problem, and then a quarter or two later, it's a problem. That's so bothersome. We saw that last year within Nvidia, when they were like, "Our inventory concerns aren't a problem with crypto," and suddenly, it's a massive problem. We saw it with Abiomed, saying, "Our FDA letter that we're working through isn't a problem." And suddenly, next quarter, "Oh, we also have to do all these restructurings." It reminds me of that. When this happens, it just makes me question everything else management has to say.
Gross: Yeah. I wrestle with, did they lose credibility, in my mind, the management team, because they were fibbing? Or did they just get it wrong? Either way, it's not that impressive.
Hill: Last thing for you, Emily, on the stock. There are people out there who look at the long-term performance of FedEx, how well the company has done over time, and say, "You know what? If the stock is down 15% this week, that's a buying opportunity for me."
Flippen: I don't look back, I look forward. What I see is FedEx going to have to meet Amazon's investments into logistics, infrastructure, modernizing their fleet. That's going to be extremely capital intensive. It's probably going to force them to raise prices on their core consumers, which now have a lot of third-party options. So yeah, I don't look back and say, "FedEx is so important for the last 10, 20 years." I look forward and I think, "FedEx probably is not going to be as important for the next 10 or 20 years."
Hill: Shares of Microsoft (NASDAQ: MSFT) hit a new all-time high this week after the board of directors approved a stock buyback plan to the tune of $40 billion, Ron. Also, they increased their quarterly dividend 11%.
Gross: So impressed with what this company has done over the last four or five years. Incredibly strong balance sheet. They produce gobs of cash flow. They have $134 billion in cash. Cash from operations in the last fiscal year was $52 billion. They've got more cash than they know what to do with. Between 2017 and 2019, the fiscal years the company repurchased $35 billion worth of stock. Here we go with another $40 billion authorization, which they're not going to execute quickly. They'll be smart about it. Certainly, the last two years, it was a great use of capital. The stock's up 88% over the last two years. Over the last five years, it's up over 200%, crushing the market. Love the dividend. I think they could actually do more. It's only really about a 1.5% yield. Nothing stopping them, I think, from increasing that to maybe 2% or higher. But the company really continues to execute, especially with their cloud business. Love it.
Bush: Yeah. When I look at this -- we talked about this a bit yesterday on MarketFoolery -- it is impressive, because it's big numbers; but put into context, when you have some $130 billion on your balance sheet, when you produce $40 billion in free cash flow and growing it every year, this isn't a drop in the bucket. It's a nice little scoop in the bucket. But it isn't as meaningful as $40 billion would sound in pretty much any other context. It's still less than 4% of total shares outstanding. It's not like it's some big, bold, strategic move on behalf of management. But, every bit helps.
Hill: Ron, when you look at shares of Microsoft, do you think it's an expensive stock? Or do you feel like it's reasonably priced?
Gross: 26X forward earnings right here. It's not cheap, but they're really executing. No. 2 cloud company right now in the world behind Amazon. I think it's fine to own it.
Hill: This week, Apple launched Arcade, a new video game subscription service with access to 100 games. It's $5 a month, and that's for an entire family. Aaron, are you at all surprised at the low price? This is a company that made its bones charging premium prices for premium products
Bush: A little bit. I'm not surprised by most things relating to the service. But definitely, the price was lower than what I, and I think pretty much everybody else, expected. But when you think a bit about it, it makes a bit of sense. What they make up in price, they can more than make up on volume. What they're going to be doing with Apple Arcade is, out of the five tabs on the App Store, they're going to make one of them Apple Arcade. So all the 700 million Apple users that are out there, this will be one of the five tabs that all of them see. They have a huge distribution advantage. It's estimated that they've invested about $500 million into the initial slate of games, which is a pretty significant sum of money. What makes it different from something like Apple Music is, with Music, you have to pay for every single song that is played. With games, it's just that fixed cost up front. The more people that they can get into it, the margin is just incremental upside. Even though it's a lower price, I feel good about their ability to scale over their costs.
Flippen: It reminds me of Disney+, actually. People were really excited about the Disney+ offering, and they came in with this much lower price, because I think both companies realized that you have to change habits when you come out with these new products. Gamers for a long time were not used to consuming games on a subscription style basis. So, you come with a low price. It's a low hurdle for people to jump just to try it. And once they're in, people enjoy this, hopefully, and get stuck using it. It's not too much of a surprise to me to see the low price point.
Bush: I think consumers have almost forgotten, especially as we see things like cable become unbundling, bundling is actually a pretty great thing for consumers because it gives you more at lower prices. What's not to like? I think we're starting to see some of these companies come back and start to rebundle again in new ways, and that ultimately is good for everybody.
Hill: Last thing on Apple. Aaron, when you look at where this is going to go, this is going to get recognized in the services division for Apple. How big do you think Arcade can get?
Bush: It could wind up the most profitable service that Apple has. Games are such an important piece of the App Store, and the economics of games and being able to scale over their costs is significantly better than what we've seen in some of the other services like Music. So I do think this will move the needle. It might take some time to scale up and they'll definitely invest more in other games, but I do think it will be impactful.
Hill: Shares of General Mills up slightly for the week despite a less than fabulous first quarter report. Ron, General Mills has 15 categories it sells in -- breakfast cereal, snacks, baking products. It looks like the pet division is the shining star and the other 14 are lagging.
Gross: Well, you nailed it. Definitely a mixed quarter. Disappointing top line, but they did eke out some earnings growth, which was nice to see. Sales fell 2%. Strength only in pets thanks to the Blue Buffalo acquisition. Weakness pretty much everywhere else. International was especially weak. North America was flat, but that's actually good because it's an improvement over where it's been recently. What allowed them to eke out a profit was, they had some good pricing and sales mix that impacted margins to the positive. Margins widened. Operating income up 10%. Adjusted earnings up 13%. That's pretty good and allowed them to reaffirm their outlook.
But things remain weak. You have to grow those top line numbers, because you're not going to be able to continually expand margins, widen margins on price and mix for long. You need to sell stuff.
Flippen: When investors think about General Mills, they probably don't think about pet food, but that makes up about 10% of their total revenue. It's almost as big as their entire Europe and Australia business and bigger than their Asia and Oceana business entirely. It's important to remember here that this really is kind of a pet food story. The Blue Buffalo acquisition is really the only thing keeping General Mills alive. I also think investors appreciate the fact that they reaffirmed guidance for organic growth of 1% to 2% for the year. That also helps. But undoubtably buoyed by Blue Buffalo.
Gross: And it's interesting, because acquisitions often don't work out, and they often are a waste of money. Perhaps the story isn't over yet, but perhaps this was actually a pretty good use of capital.
Hill: So, how are shares of General Mills up 40% year to date? Was it just oversold?
Gross: It was oversold because the business was incredibly weak, as were many of these companies, whether it be Kellogg's, Kraft, Mondelez. And then, the Blue Buffalo acquisition reinvigorated the company, reinvigorated the revenue. That led to growth on the profit line. And of course, the stock reacts when profits go up.
Bush: In content, the stock is still flat over the past five years. Context is key.
Gross: Context is key.
Hill: Datadog went public on Thursday. This is a data analytics company. Shares up nearly 40% on its first day. You interested?
Bush: I am interested. I don't know if I'm interested in the price right now, but I'm very interested in the business. For some context, Datadog, they provide monitoring and analytics services for developers and IT teams. What they do isn't necessarily new. Other companies like New Relic and Splunk and others have worked in similar spaces. But what they've been able to do differently is continue to add new features, go into new areas, and then bundle things together in a way that makes it extra convenient for teams and developers to use. A lot of that progress has also shown in the numbers. If you look at the past year, revenue's grown 82%. 40% of customers use at least two of their products. It shows that their value proposition is working. Their dollar based net retention rate, which shows how existing customers are spending more money, over the past year, that's clocked in at 146%, which is about the best I've seen since maybe Twilio a couple years ago or so. Already operating cash flow positive. There's evidence that what they're doing technologically is helping people. Developers and IT teams are racing toward them very quickly. I think there's evidence that this can be a big company. It already is a big company because of how it's being priced at something like 40X sales. They still have a lot to prove, but it is an impressive business.
Hill: Already an $11 billion company. Before they went public, Cisco Systems made them a $7 billion offer to buy them. Think they're happy they turned that down?
Bush: A little bit.
Hill: This week, Airbnb said it plans to go public in 2020. Emily, obviously there's no S-1 filing yet. We don't know the numbers. But even without knowing the numbers, how interested are you in Airbnb?
Flippen: I feel like I've been teased with Airbnb for a while now. What happened to 2019? It seemed like that was going to happen for an IPO for Airbnb, but it did not. Yes, the CEO and co-founder Brian Chesky is now teasing a possible 2020 IPO. While we are still waiting for those documents to get a sense about the pricing and the business, their most recent valuation was in September 2017 at $31 billion. I think it's safe to say that, it does IPO in 2020, it's going to be a big IPO. That's saying something because the company, as of the most recent numbers we have, which I believe was the end of 2018, only was doing about $1 billion in revenue, which is great, but when you look at a 2017 valuation of $31 billion, it does testify to the value of maybe just the name brand that's being perceived in the market right now.
Hill: It will be interesting to see. To add a little more context, you look at Hyatt Hotels, that's an $8 billion company; Marriott, $42 billion. It's not inconceivable that, depending on any number of outside factors, Airbnb goes public, and it is automatically a bigger corporation than Marriott.
Flippen: And I don't think that's ridiculous. I think it's like going back to Uber and looking at Uber and the size of the cab market. In reality, a lot of these businesses are expanding their market by making -- hotels, for instance, staying at someone's house, more accessible. People are doing it more frequently because it's more accessible, because it's cheaper, versus staying at a Hilton or staying at a Marriott. So I think it's not completely unfounded, although it might not be the best return for shareholders.
Bush: Yeah, I don't know where exactly, it'll go public, but it definitely is a bigger idea. On the same side of, they have their own rooms and places where you can stay, but they also are increasingly acting like an OTA. They bought HotelTonight. Not only are they competing with the Marriotts of the world, but they're increasingly competing with the Expedias and Bookings of the world, almost a hybrid, unique form that we're seeing at scale for the first time.
Hill: WeWork officially postponed its plans to go public. Ron, given all the skepticism that we saw from Wall Street, along with the Wall Street Journal's, let's just call it less than flattering profile of CEO Adam Neumann, what is the path forward for WeWork?
Gross: Well, first, I'm happy to say that some rationality has returned to the IPO market. It's good when you see something be pulled that should be pulled. Valuation concerns, governance concerns, business model concerns, leadership concerns. There was so much writing on the wall here that certainly, the $47 billion initial valuation was going to be ridiculous, and perhaps they needed to rethink some things such as corporate governance, which they have done. The path forward. They really needed to raise $3 billion for a $6 billion line of credit to kick in. SoftBank may be there to backstop them. It remains to be seen. SoftBank was willing to buy $750 million worth of stock in the IPO to help soak up some of that excess supply, because it wasn't going very well. Maybe there's a way forward for them to raise capital in the private markets. But right now, they're really saying postponement is still mid-October at the earliest. It doesn't mean it's on hold forever.
Hill: Do you think Adam Neumann stays the CEO? This is reminding me of Travis Kalanick at Uber. The path forward for Uber included Kalanick stepping aside.
Gross: He's an eccentric dude, for sure. I think they probably need to bring in someone who is more of a professional manager and then kick him upstairs and allow him to be the co-founder.
Hill: After years of being the worst performing franchise in the Yum! Brands empire, Pizza Hut is finally showing some momentum in terms of growing sales in the second year of its partnership with the NFL. Pizza Hut is looking to capitalize on that momentum with its latest innovation, the Stuffed Cheez-It Pizza.
Gross: Boo.
Hill: It is a limited-time menu item. The Stuffed Cheez-It Pizza includes four large squares of a crust infused with the sharp cheddar flavor of Cheez-Its, a popular snack made by the Kellogg Corporation. I'm all in on this innovation.
Flippen: I thought Cheez-Its couldn't get any worse. Leave it to Pizza Hut to somehow bring back the Cheez-Its.
Gross: I'm taking the other side of the Cheez-Its trade there. Cheez-Its are just fine. But cheddar flavor has no place on the pizza.
Bush: Ron, would you hate a stock before you looked at it and analyzed it?
Gross: Are you saying I need to taste test this thing?
Bush: I'm saying you can't hate on this type of pizza without trying it.
Gross: I consider myself a pizza aficionado, and I can tell without tasting it.
Hill: I am pretty confident this is going to move the needle for average ticket price in the next couple of quarters for Pizza Hut.
Flippen: Well, I'd be lying if I said I didn't want to try it, even though my hatred for Cheez-Its is pretty palpable.
Hill: Earlier later this week, producer Mac Greer caught up with John to talk about investing in self-driving cars, the future of Ford Motor, electric vehicles, and more. But Mac began the conversation by asking John about General Motors and the United Auto Workers. The two sides have been meeting to hammer out a new contract as 46,000 union workers continue their nationwide strike.
Mac Greer: For those who haven't really been following this GM story as it unfolds, what's the issue? What does it mean for investors?
John Rosevear: Well, let's step back a minute so we understand the context. The UAW redoes its contracts with the three Detroit automakers -- GM, Ford, and Fiat Chrysler -- every four years. This is an every-four-year kind of thing. And when they do it, they pick one of the three automakers to really negotiate aggressively with, to try and get an agreement they can live with. And then they use that as what they call the pattern and try to impose similar terms with the others. And it usually works out.
This year, they selected General Motors, and they found that they were really butting heads with GM. The workers have a few issues. First of all, GM announced a big restructuring late last year. 6,000 hourly jobs cut. Similar number of white collar jobs cut. Several plants closed, and so on. In particular, a big factory in Lordstown, Ohio, which made the compact Chevrolet Cruze sedan, which has been discontinued, was set to be shut down. That's become a rallying point for the UAW. They want GM to give that factory a new product to build. From their perspective, GM is building vehicles in Mexico, more and more of them. And they say, "Hey, wait a minute, you've got to bring some of that to the United States, back to us."
Another issue, GM has been using temporary workers as a portion of their hourly workforce to try and increase flexibility. They're worried about the economy and so forth. Right now, about 7% of GM's U.S. factory jobs are filled by temporary workers. These folks make about $15 an hour, which is significantly below the UAW scale. UAW wants to reduce that percentage and give the contractors a path to becoming full-time employees getting the UAW scale, and so on. GM would actually like to use more contractors. That's another big bone of contention there.
There's some issues around healthcare. UAW workers pay only about 4% of their healthcare costs. GM had wanted to boost that to 15% but backed off that demand. We should note that the national average for family healthcare coverage, the average U.S. worker contributes about 29%. So they would both be generous plans, but the UAW strongly wants to stick with the status quo.
There's some other stuff in there, too. But those are the big points.
We understand, at least as of yesterday, that the sides are still far apart on this issue. This is going to be expensive for both sides. GM is probably losing something like $45 million a day because of last production with all its U.S. factories shut down. If this goes on into next week, we're going to start to see network effects, too. Suppliers will be furloughing. GM's factories in Canada and Mexico that depend on parts from the United States will be shutting down and so forth. That will get more expensive. Meanwhile, the folks on strike are getting strike pay from the UAW, which is $250 a week. They're getting their healthcare benefits covered via COBRA. UAW is picking up that tab. But it's a hardship for them, too. So there's incentives on both sides to cut a deal here. But it doesn't sound like they're close yet.
Greer: When we pull back and look at the business of GM, what do you think is the biggest threat? And what do you think is the biggest opportunity?
Rosevear: I think there are two sides of the same coin. We know that the auto industry is moving toward electrified propulsion, more and more computerized assistance, artificial intelligence assistance, with driving. Up to full self-driving, we think, eventually. These are seismic transitions for the industry. GM is deep into a plan to transition to that. They have 20 something electric vehicles on the drawing boards. They have a subsidiary called Cruise out in San Francisco that has made really good progress with self-driving. But they're restructuring the company to maximize their profits from their old business -- selling cars, trucks, and SUVs, particularly trucks and SUVs, which generate good profits -- to fund this transition.
The biggest threat to them, I would say, is that they don't make it. That they get into this new world, and others have beaten them out and stolen their market share. Or, alternatively, they commit heavily to electric cars and nobody shows up to buy them; everybody still wants to gasoline cars. That's also the biggest opportunity. They're being very aggressive here. If, in fact, the world goes the way they think it will, toward more electric vehicles, toward more connected cars, toward more self-driving cars, they are right now in a good spot to be out in front when that happens.
Greer: John, let's talk self-driving cars. If I'm interested in this space, I'm looking at some potential investments, where should I be looking?
Rosevear: That's an excellent question. Unfortunately, there isn't an easy answer. There are companies, obviously, working on self-driving cars. Some of them are well positioned. We should clarify that there are no self-driving cars out in the world yet. This is technology that is under development. When you hear cars described as self-driving, what you're really seeing is advanced Driver Assist systems like Tesla's Autopilot and GM's Super Cruise. Self-driving cars are a technology that we expect to emerge soon. There are a lot of companies working on it. The problem from an investment perspective is there no pure-plays. Waymo is a company that is out in front in terms of its technology. It is a wholly owned subsidiary of Google's parent, Alphabet. You can invest in Alphabet, but the portion of Alphabet's revenue and profit that's likely to come from self-driving cars over the next decade is relatively small in the grand scheme of Alphabet. Likewise, General Motors, Cruise is also doing very well. They're probably a step behind Waymo but a step ahead of most others. GM has a majority stake, a controlling stake, in Cruise. You could invest in GM for Cruise. It'll have a somewhat bigger participation. You might actually get shares of Cruise if GM chooses to spin it off. But again, right now and in the next five years or so, the portion of GM's top and bottom lines that are going to come from Cruise is fairly small.
And then there are other companies which are not yet public -- or, we should say, not public, because they may choose a different path. They may be acquired by a larger firm rather than going public. A number of start-ups, including companies like Zoox, as well as companies tangential to the self-driving space. Velodyne makes the LIDAR sensors that most self-driving cars under development depend upon.
I think, to an investor who is interested in this space, what I would say to you is, learn about it. There will be pure play opportunities. I'm convinced of this. They will start to emerge maybe within the next year or so. I know Velodyne is about an IPO. I would say, educate oneself.
Greer: John, let's talk electric vehicles. News out this week that Amazon is placing a new order of 100,000 electric delivery vans from Rivian, which is a rival to Tesla. What do you make of that?
Rosevear: I think it's interesting. Amazon is an investor in Rivian. So is Ford Motor Company. In fact, Ford's manufacturing chief Joe Hendricks sits on Rivian's board, which is some assurance that those vehicles will actually be able to get manufactured. [laughs] Ford is helping them with that. I think it's really interesting. That deal just came out earlier today as we're recording. It's not unexpected. There are things we don't know. Is this vehicle being designed jointly with Ford? Is this a pure Rivian design? Is this a utilitarian commercia van? Is it something else? Some sort of customized thing? Is there some element of self-driving or advanced Driver Assist that is contemplated for this? There's a lot we don't know. To back it off a minute, it is 100,000 vehicles, but that's over four years. It's 25,000 a year, which is not a ton of volume, but it is significant because people will see these in their neighborhoods, presumably. They may be branded as Rivian or uniquely recognizable in some way. It's significant in that sense. It's a plum for Rivian. It doesn't shake the world, but it's a noteworthy deal.
Greer: When we look at the auto industry as a whole, what's something you think we might be missing as investors?
Rosevear: Oh, good question. I always want to remind investors, this is a cyclical business. It takes a lot of capital. Margins are relatively thin, even in good times, etc, etc, etc. But the scale of this transition that we've been talking about, from gasoline powered, human-driven vehicles to electric, at least partially, if not fully, self-driving vehicles, is just massive. It's not just the automakers. They can't just set up one day and start building these things. There's a whole supply chain that has to come into existence, right down to -- one of the reasons that we don't have millions of electric cars on the road right now is, two or three years ago, there was not enough lithium coming out of the ground to make the batteries to power all these cars. All of these things are being scaled and ramped up and thought about and invested in right now. I think somebody who's like, "When is Ford going to roll out an electric F-150?" needs to understand that there are four or five years' worth of events that have to happen -- some of which have already happened, we are down that road -- on a huge scale, for Ford to bang out an electric F-150 every 53 seconds like it does with the gasoline F-150s. For the volumes to happen, there's just so much that has to change and be developed. And it is happening.
But I think sometimes people say, "Well, Tesla can put out lots of electric cars. How come GM can't?" First of all, GM operates on a much bigger scale than Tesla. Second of all, Tesla has been working on its own little supply chain for years. The bigger supply chain needed to support GM, Volkswagen, Ford, Toyota, etc, etc, that's coming into being. We're several years down the road of it coming into being. It's going to take several more years before it comes into being. Just the size of this transition, I think investors have to keep that in mind. The amount of money that's being spent by most, if not all, of the automakers, and this huge, almost global effort to bring this into being.
The parallel to that -- there are going to be winners and losers out of this. There are going to be some automakers that don't make the transition. There will be some automakers we think of as medium sized who might become very big. We don't know how that's going to play out yet.
Greer: John, as we wrap up here, how about one story you're watching going forward?
Rosevear: Ford is doing what they call the redesign of their business. CEO Jim Hackett, he was at Steelcase for many years. He has kind of a professorial teacher affect to him. He has brought to Ford this idea that they need to redesign their business both to thrive in the existing world and to be ready for this upcoming world that we've been talking about. A lot has started to unfold of this. For a long time, it was unclear exactly what they were going to do. There are a lot of elements and a lot of moving parts to this that are coming into play. If Ford pulls this off, they will be a significantly more profitable company four or five years from now. And they will be well positioned to play in this new world as well. That's the story I'm watching. What is Ford going to do in Europe? How is Ford going to resuscitate its Chinese business, which has really gone off a cliff, which is part of what's being redesigned here? How will buyers react to Ford dealers that don't have any sedans, which will be the case in a couple years? How will buyers react to the new products Ford is bringing out to fill in some of the spaces that are being opened by its decision to discontinue lower-profit models? All of this. This is a really fascinating story. I know that a lot of folks in America have an attachment to Ford, which makes it all the more compelling. They are doing this really interesting self-restructuring that was not dictated by urgent financial need, but was dictated by what they saw as a need to prepare for the future. The way it's unfolding is very interesting.
Greer: John Rosevear covers the auto industry for The Motley Fool. John, thanks for joining us!
Rosevear: Mac, thanks for having me!
Hill: Our email address is radio@fool.com. Question from Matt Riley, who asks, "Do you think the hype around artificial intelligence is similar to the hype that surrounded 3D printing? Seems like right now, there are a ton of ideas for how AI can be applied. But in the end, they will be difficult to execute or scale. Thanks for all the great work. Love listening to your show." We love that you listen, Matt. Thank you. Great question. Ron, what do you think?
Gross: Matt, because I care about you and the listeners, I reached out to our resident AI expert Seth Jayson about this question. He sees the two industries as being very different. He thinks AI is already doing much of what's been promised, especially with machine vision, natural language comprehension, and machine and deep learning. It's already making a major impact. For many companies. It's only going to become more useful as the software and hardware become better. He sees that as a big contrast to 3D. Really, in his opinion, the two things have not much in common.
Flippen: I'll take the other side of that trade. I mean, look, with 3D printing, there's something physical, I can see it there. AI is so popular right now because nobody knows what it is and everybody can claim that they do it. For instance, last month, doing some research on Intuit. AI was mentioned over 20 times in Intuit's most recentearnings call They're talking about improving AI, improving the tax software. Look, AI is everything. I'm AI. You're AI. We're all AI, and we all love to say it.
Gross: [laughs] Is that helpful, Matt?
Bush: I'll take the middle road. AI is different because it's a foundational software based technology that lots of different companies and lots of different industries can build on. You won't hear an Intuit talking about 3D printing, for example, but you'll hear lots of companies talk about artificial intelligence. But it is smart to be aware of hype, because all technologies, all trends go through the hype cycle. AI is definitely higher up the curve than 3D printing is. But really, 3D printing, their problem was less the hype cycle with consumers and investors; the problem there was, the hype cycle got to the executives and they just lit money on fire on terrible deals. All of them.
Gross: Two against one, we win.
Bush: I think I'm in the middle.
Gross: 0.5 to one.
Bush: Tie.
Hill: It's a push. Let's get to the stocks on our radar. Our man, Steve Broido, is under the weather, but fortunately, Austin Morgan, the Iron Man, is behind the glass. He'll hit you with a question. Ron Gross, you're up first. What are you looking at this week?
Gross: I'm going back to Tractor Supply (NASDAQ: TSCO), TSCO. Operator of 1,800 retail farm and ranch stores in the U.S. Total Income recommendation in April. Stock has been weak this month, creating an opportunity for investors to get in. They are the largest operator of rural lifestyle stores in the U.S. 2016 acquisition of Petsense gives them another avenue of growth. I think margins are going to continue to go up. They've raised their dividend for the last eight years consecutively, with that dividend standing at 1.3%.
Hill: Austin, question about Tractor Supply.
Morgan: Ron, have you ever driven a tractor?
Gross: Actually, growing up, we had quite a big backyard, and I had a Deere tractor, and my dad taught me how to mow the lawn, and I loved it.
Hill: Was it a Deere lawn mower or an actual tractor?
Gross: It was an actual tractor.
Hill: Alright. Emily Flippen, what are you looking at this week?
Flippen: How about we try to drive something a little better than a tractor? How about a car? Today I'm talking about Uxin (NASDAQ: UXIN), UXIN, which is the largest e-commerce car dealer in China. I've talked about this company before. They report earnings next week. It'll be really interesting to see what they report, especially given all the noise around China right now in this slowing economy and maybe some of the tariffs that are coming in place, especially on vehicles. It'll be exciting. Uxin has a really innovative business model. They're taking the place of the CarMax in China, transporting vehicles. But it's definitely not without risk. It'll be an interesting one to watch.
Hill: And the ticker symbol?
Flippen: UXIN.
Hill: Austin, question about Uxin?
Morgan: How popular is the American muscle car in China?
Flippen: More popular than I think you would assume, but not as popular as in other countries.
Hill: Aaron Bush, what are you looking at this week?
Bush: Let's fly back across the ocean to another part of the world and look at MercadoLibre (NASDAQ: MELI), MELI, which is the dominant e-commerce company in Latin America. It's increasingly becoming a leading fintech company in the region, too. You look at the business, pretty much all of the metrics are swiftly moving in the right direction. The number of customers, number of items shipped, total payment volume. And, of course, being in Latin America does make them more prone to geopolitical risk. But those tough conditions actually keep a lot of the competition away. And if MercadoLibre is doing this well when times are poor, it makes you wonder just how good they can perform when times are good. The stock is down a bit, but frankly, I have a hard time seeing how this doesn't become a much bigger company in the long term.
Hill: Austin?
Morgan: Are they stuck in Latin America or can they expand?
Bush: Right now they are stuck in Latin America, but that is OK. There still are a billion people there, and pretty much, right now, with limited competition, it's all theirs to take.
Hill: Three stocks, Austin. You have one you want to add to your watch list?
Morgan: I'll go with MercadoLibre.
Bush: Alright!
Hill: Alright. Thanks, everybody! That'll do for this week's edition of Motley Fool Money. Our engineer is Austin Morgan. Our producer's Mac Greer. I'm Chris Hill. Thanks for listening! We'll see you next week.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Aaron Bush owns shares of ABMD, Amazon, Apple, BKNG, MercadoLibre, NVDA, TWLO, and DIS. Chris Hill owns shares of Amazon and DIS. Emily Flippen owns shares of Uxin Ltd. John Rosevear owns shares of Amazon, Apple, F, and General Motors. Mac Greer owns shares of Amazon, Apple, MercadoLibre, NVDA, Tractor Supply, and DIS. Ron Gross owns shares of Amazon, Apple, Microsoft, and DIS. The Motley Fool owns shares of and recommends ABMD, Amazon, Apple, BKNG, FedEx, INTU, MercadoLibre, Microsoft, NVDA, SPLK, TWLO, and DIS. The Motley Fool has the following options: long January 2021 $60 calls on DIS, short October 2019 $125 calls on DIS, short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, and long January 2021 $85 calls on Microsoft. The Motley Fool recommends KMX, H, MAR, NEWR, Tractor Supply, UBER, and Uxin Ltd. The Motley Fool has a disclosure policy.
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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Plus, news from Datadog (NASDAQ: DDOG), Yum! Hill: Shares of Microsoft (NASDAQ: MSFT) hit a new all-time high this week after the board of directors approved a stock buyback plan to the tune of $40 billion, Ron. Hill: Earlier later this week, producer Mac Greer caught up with John to talk about investing in self-driving cars, the future of Ford Motor, electric vehicles, and more.
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Plus, news from Datadog (NASDAQ: DDOG), Yum! Aaron Bush owns shares of ABMD, Amazon, Apple, BKNG, MercadoLibre, NVDA, TWLO, and DIS. The Motley Fool owns shares of and recommends ABMD, Amazon, Apple, BKNG, FedEx, INTU, MercadoLibre, Microsoft, NVDA, SPLK, TWLO, and DIS.
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Plus, news from Datadog (NASDAQ: DDOG), Yum! In this episode of Motley Fool Money, analysts Emily Flippen, Aaron Bush, and Ron Gross discuss some of last week's biggest business news. When I look at this -- we talked about this a bit yesterday on MarketFoolery -- it is impressive, because it's big numbers; but put into context, when you have some $130 billion on your balance sheet, when you produce $40 billion in free cash flow and growing it every year, this isn't a drop in the bucket.
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Plus, news from Datadog (NASDAQ: DDOG), Yum! Hill: Last thing for you, Emily, on the stock. When I look at this -- we talked about this a bit yesterday on MarketFoolery -- it is impressive, because it's big numbers; but put into context, when you have some $130 billion on your balance sheet, when you produce $40 billion in free cash flow and growing it every year, this isn't a drop in the bucket.
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2019-09-23 00:00:00 UTC
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4 Reasons Datadog Is a Hot IPO
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DDOG
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https://www.nasdaq.com/articles/4-reasons-datadog-is-a-hot-ipo-2019-09-23
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One of this month's biggest IPO winners is Datadog (NASDAQ: DDOG). The provider of cloud monitoring and analytics tools went public at $27 on Thursday morning, and two days into its brief trading life the stock is already fetching 34% more than its initial price tag.
There are a few good reasons why the stock market can't get enough of the shiny new debutante. Let's go over why Datadog and its monitoring service that delivers accountable insight are hot commodities right now.
Image source: Datadog.
1. Demand is a beautiful thing
Underwriters were initially looking to price the Datadog deal between $19 and $21, an offering that would have valued the company between $5.5 billion and $6 billion. It wasn't enough.
Investor demand was strong for the IPO, a good sign for near-term returns. Lead underwriters would go on to raise their price range to between $24 and $26 early last week, eventually lifting it again to $27 -- a market value of roughly $7.8 billion -- just ahead of the market debut. The stock has nearly doubled off the low end of its initial pricing range.
2. Growth is always a good look
The popularity of Datadog's multicloud analysis is booming. Revenue soared 97% last year, and it's up 79% through the first six months of the year. Things like a lack of near-term profitability and lofty revenue multiples seem to be more forgivable when a company is growing quickly.
Growth often isn't enough. There are a lot of broken IPOs this year checking in with decent top-line growth. Investing in IPO stocks isn't for the risk-intolerant. However, when strong growth matches a good story -- and Datadog qualifies as a winner on both fronts given its fast-growing platform -- it's an investment that you don't want to invest against.
3. Stickiness matters
Even if you don't have a firm grasp on Datadog's business, it's easy to see if it's clicking with customers. Every quarter Datadog and other tech platforms put out their dollar-based net retention rate, and if it's higher than 100%, it indicates that its existing customers are spending more on additional subscriptions and products than they were a year earlier.
Datadog's dollar-based net retention rate was 146% as of the end of June, and it's not a fluke. The rate has stayed north of 140% through the past couple of readings.
4. Cisco's reported deal offers a floor
An interesting report on the eve of Datadog's IPO last week was that Cisco (NASDAQ: CSCO) might have been interested in acquiring the debutante. Bloomberg reports that Cisco was willing to offer more than the stock's initial price tag at the time. Datadog refused, rightfully concluding that it would be worth more following its IPO.
Cisco reportedly looking to buy out Datadog validates the platform, something that can also be said about Datadog's growing list of big-name clients. Cisco's appetite would also seem to provide a floor for the stock if investor enthusiasm wanes, something to keep in mind if the market loses it initial zeal for Datadog as we've seen with other IPOs that start hot out of the gate before proving mortal.
10 stocks we like better than Datadog Inc
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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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One of this month's biggest IPO winners is Datadog (NASDAQ: DDOG). The provider of cloud monitoring and analytics tools went public at $27 on Thursday morning, and two days into its brief trading life the stock is already fetching 34% more than its initial price tag. Every quarter Datadog and other tech platforms put out their dollar-based net retention rate, and if it's higher than 100%, it indicates that its existing customers are spending more on additional subscriptions and products than they were a year earlier.
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One of this month's biggest IPO winners is Datadog (NASDAQ: DDOG). Investor demand was strong for the IPO, a good sign for near-term returns. Datadog's dollar-based net retention rate was 146% as of the end of June, and it's not a fluke.
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One of this month's biggest IPO winners is Datadog (NASDAQ: DDOG). Cisco's appetite would also seem to provide a floor for the stock if investor enthusiasm wanes, something to keep in mind if the market loses it initial zeal for Datadog as we've seen with other IPOs that start hot out of the gate before proving mortal. 10 stocks we like better than Datadog Inc When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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One of this month's biggest IPO winners is Datadog (NASDAQ: DDOG). Growth often isn't enough. However, when strong growth matches a good story -- and Datadog qualifies as a winner on both fronts given its fast-growing platform -- it's an investment that you don't want to invest against.
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719105.0
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2019-09-23 00:00:00 UTC
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Microsoft Casually Pops Its Dividend 11%
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DDOG
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https://www.nasdaq.com/articles/microsoft-casually-pops-its-dividend-11-2019-09-23
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In this episode of MarketFoolery, host Chris Hill talks with Motley Fool analyst and video game industry whiz Aaron Bush about somemarket news Data analytics company Datadog (NASDAQ: DDOG) went public, and despite an increasingly bearish IPO market, investors seem pretty excited about this one. Apple (NASDAQ: AAPL) Arcade launched today, and Apple gave the service its own tab. Aaron explains why he thinks this could be Apple's biggest service going forward. Also, in light of Microsoft's (NASDAQ: MSFT) dividend/ buyback announcement, Aaron explains some context around the trillion-dollar company -- namely, why that money isn't going toward, say, new games; and what the next few years look like for Microsoft. Tune in to find out more!
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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This video was recorded on Sept. 19, 2019.
Chris Hill: It's Thursday, Sept. 19. Welcome to MarketFoolery! I'm Chris Hill. Joining me in studio this week, he's the Iron Man, it's Aaron Bush. Thanks for being here!
Aaron Bush: I'm happy to be here!
Hill: Yesterday you were in the studio with David Gardner for Rule Breaker Investing. Check out that episode, if you haven't already. And, Aaron's going to be on Motley Fool Money this week. Can we start with some happy IPO news?
Bush: Let's do it!
Hill: It seems like all the IPO news we've talked about lately has been about WeWork, and that's just been sadder and sadder.
Bush: Not a good IPO poster child.
Hill: No, no. Here's a potential IPO poster child for 2020, and that's Airbnb, which announced this morning it is going public in 2020. I'm interested to see some more data as it comes out. The last private market valuation I saw for Airbnb, I think it was two years ago this month, and the valuation was somewhere around $31 billion. It has to be higher now. There's no way it's lower now.
Bush: Yeah, it'll be much higher. Wouldn't surprise me if it's double that when it IPOs. It's taken them so long to IPO. I'm glad they're finally putting it into the works here.
Hill: Is that something where the second the S-1 gets filed, you're going to get your hands on it? Or, is it one of those things where you're like, "Oh, I'm interested. I'm not necessarily that interested."
Bush: No, I'm definitely interested. What Airbnb is doing is a big deal. I'm sure me, along with most of the rest of the investing world, will be paying a close attention to this one when it comes out. I think what's going to be most interesting about it is, Airbnb is more than just people leasing their homes out short-term. They're trying to be an OTA and compete with the Expedias and Bookings of the world from a different angle. Seeing their success on that front, and what it means for the financials and growth, that'll be really interesting for me to see.
Hill: I think what's interesting about their business, and this is something that doesn't really show up on the balance sheet, but it could be something that they speak to in terms of qualitative metrics, in terms of what they know about their customer base, is Airbnb is one of those experiences that, if you try it, and it works out well for you, then you're hooked. At least, that was the case with me. A lot of my friends, same thing. It's like, "I'm going to try this once and see how it goes." And when it works, you're just like, "This is now the default for me when I'm on vacation travel as opposed to business travel."
Bush: Yeah. Definitely, a word of mouth marketing is a big component of that, too. My Airbnb experience has been hit and miss, so it's not my necessary go-to every single time. But I think it's still good to look at.
Hill: I'm assuming that if it was a miss the first time, you'd be like, "No."
Bush: Yeah. It was solid the first time. Got me coming back.
Hill: Alright, more immediately, we have an IPO today, and that's Datadog, which is a data analytics company. Great name. Kudos to whoever came up with that name. Datadog at this point -- it's just about 12:00 noon as we are recording this -- we don't have public data yet, which is a little unusual. Typically, when a company goes public, we see the stock open usually around 11:00 in the morning. So, the fact that Datadog went public at $27 a share, we still don't have an opening price --
Bush: Oh, it looks like we do, actually. As of right now, it's about $41.
Hill: OK, I was just about to say, the one report I've seen right before we started recording was someone from CNN Business saying that it indicated about $40. So, there you go. $41 a share.
Bush: Up about 50% from their price. It's not showing the market cap yet, but I think that's about a $12 billion market cap. Pretty absurd.
Hill: For the sake of context, it's worth pointing out that Cisco Systems made an offer to buy Datadog for a little more than $7 billion. Sorry, Cisco Systems! They're probably just pounding the table today, seeing what's playing out right now.
Bush: Yeah, good for Datadog. I will say, though, pricing IPOs much lower than they go public at is definitely criminal in some sense, because that means that --
Hill: [laughs] Wait, do you want to use the word "criminal"?
Bush: Criminal is probably a strong word. But the companies that are raising money, they're essentially just leaving tons of free money on the table when their stock goes up much higher than what it was priced for. Datadog is probably leaving hundreds of millions of dollars on the sideline by not pricing their IPO higher. But, it's also a testament to investors out there, they're into software right now, they're craving high growth, and Datadog is giving it right to them.
Hill: And it's the sort of business that has the tendency to be sticky if you do it right. If you have a good data analytics company that you're working with, and they're serving you well and constantly innovating, you don't want to switch there.
Bush: Yeah, for sure. It might be worth backing up a little bit just to share what Datadog is and what they do. They provide monitoring and analytics for developers and IT teams. They sell access to a wide variety of features via software-as-a-service. The point of all of this is to break down silos between teams and integrate data from lots of different sources and turn what was once a chaotic mix of data from lots of different places into something digestible and actionable in one place. They're not the only ones who do this. Companies like New Relic, Splunk does some of this, too. They're not the only player in this space.
But what's impressive is, they've been able to quickly add more and more capabilities. They started with infrastructure monitoring maybe seven years ago. Since then, they've added tons of other features. Application performance management, log management. They just got into the world of user experience monitoring. If they were just focused on any of those one things individually, they probably wouldn't have a solid competitive advantage. But by being able to combine all of these things together, it makes them stand out. And that shows in the numbers. 40% of customers over the past year are using at least two of their products. Revenue grew 82% over the past year. Their dollar based net retention rate, which essentially shows whether existing customers are spending more money, is 146%, which is absurdly great. Maybe the highest net retention rate I've seen since Twilio a year or two back. The company has solid margins. They're producing positive operating cash flows. It doesn't surprise me that investors are interested and pricing it at a premium. But, it must be something like 40X sales right now. They have a lot to prove based on where they're being priced at right now.
Hill: As a general rule of thumb, when a company goes public, do you have a typical waiting period that you employ before you buy shares? Or is it just on a case by case basis? Typically, you want to see the first couple of quarters, not only how they do -- because we know every company, and I don't blame them for this, but every company, when they're filing to go public, they want those numbers to look as good as possible. We've seen, certainly this year, companies come out with that first report, and it is a big drop in quality. But you also want to see, how does management handle the calls?
Bush: Yeah. As a general rule of thumb, it is smart to wait. You get more information. You can see whether they are able to deliver and live up to the hype. But I think there are times where it can make sense. If you see something others don't, which often occurs in times where there isn't a mania around lots of stocks going public, you can find really solid businesses and not be too worried about whether they'll pop or drop at the next earnings.
Hill: This is expensive, but what we're seeing today with Datadog, this isn't Beyond Meat. This isn't day one of Beyond Meat.
Bush: [laughs] No. Beyond Meat is something else.
Hill: Let's move on to gaming. Apple Arcade launches today. Arcade is Apple's video game subscription service. You were telling me this morning you think this has the potential to be the next big service for Apple.
Bush: I think so. It wouldn't surprise me if it ends up the biggest, the most profitable. We've known about Apple Arcade for a while. What we learned recently is, you pay $5 a month for access to over 100 games at launch that are ad-free, micro-transaction-free. So you pay $5 get access to full games. No gimmicks or anything. The price is lower than what I expected and I think what most people expected. But I think it could make sense. What they lose in price, they can more than make up for in volume. And I say that because Apple has probably one of the most insane distribution advantages of any company out there. There's something like 700 million Apple users. And Apple is actually going to be changing one of their five tabs and the App Store to be Apple Arcade. That shows how much importance they're putting into what this service is going to be.
It was estimated that they spent about $500 million or so on the initial slate of games. That sounds like a lot of money. It is a lot of money. But the cost structure is actually so much better than what something like Apple Music is. With Music, Apple has to pay every single time a song is played, which makes it really difficult to scale over its cost. But with games, they just pay a flat amount. It's a fixed cost. The cost is the same whether Apple has one million or 100 million subscribers. What's different is that the outside can grow exponentially. And Apple's pretty smart. They wouldn't be changing how they sell access to games unless it was beneficial to them. So, I'm optimistic that this will be a very meaningful contributor to their services.
Hill: I want to go back to something you mentioned. I think it is one of those things that doesn't sound in theory like a big deal, but it actually is. It's the addition of Arcade as a separate tab. That's one of those things that Apple does not do lightly.
Bush: No, not at all. When you have hundreds of millions of people using that one app, it makes sense to optimize it. If they're saying, "This one service should be one of the five tabs," and that's including search and apps, it shows that they think that this could not only be a big deal, but be very profitable for the business because it can attract lots of people.
Hill: Real quick before we move on, do you expect Tim Cook, maybe not this next conference call, but at some point in the next year or so do, do you expect Apple to start breaking this out separately? Or does it just get lumped into, "Here's what we're making off of services?" My expectation is, at least initially, that's what it's going to be.
Bush: I think that makes sense. I don't think they'll break this out separately. In fact, I think the whole services narrative could get even more confusing going forward. If you just play out how Apple is thinking about services, it makes sense that everything about Apple could turn into a services company. Even how you pay for your iPhones becomes a service. iPhone-as-a-service. So, how they decide then at some point to determine how they calculate the services segment vs. other things, I think that's just going to get messy. In the same way that Alphabet doesn't break out YouTube, and that makes people upset... I have a feeling we might see similar feelings about Apple in the next few years.
Hill: Yeah, but, I don't know... I agree with what you're saying; I don't agree with the timeline. I think that services would need to get significantly bigger over the next few years. It wouldn't surprise me if Tim Cook had already thought about this, and in the back of his mind, he thought, "I'm not going to be CEO when that happens." Not that he's looking to step down anytime soon, but he may just be like, "That'll be the next person's problem."
Bush: I don't know, I mean, this is a trillion-dollar company, or so. Their services business is still larger than pretty much every company on the planet. Could make sense to break some things out.
Hill: Microsoft, the trillion-dollar company, announced it is raising its quarterly dividend 11%. Also announced a stock buyback plan to the tune of $40 billion. They've got the money. They can do all of this. If you're a shareholder, you've got to be happy about this. But I'll just say now what I told you this morning. When I saw this news, the very first thing I thought of was gaming. A lot of times, when I see, "Company X announces raising dividend, stock buyback plan," my first question is, "Is that the best use of their money?" I don't necessarily think in terms of specifics within a given business. But in the case of Microsoft, I thought, "Wait a minute, should they be investing more money in gaming?"
Bush: Yeah, I think that's a good question. That's a question you can ask about gaming, about their cloud services, about pretty much any part of their business. But yeah, gaming in particular. I actually do think they are thinking intelligently about strategy and about investing right now. They're ramping up for their next console launch, which will be around the holidays next year. Associated with that, they're investing lots of money into figuring out what xCloud is going to be, which will probably be a leader in cloud gaming. They've been acquiring many studios to bring them in-house so that they can create more exclusive games. That's a strategy that's been really successful for PlayStation and Nintendo in some ways. It makes sense that Xbox invests more there. They recently struck a deal with Ninja, one of the largest gaming content creators, to stream exclusively on Mixer, which is Microsoft's Twitch competitor that I think most people don't even know that they have.
Hill: I didn't know.
Bush: So now Ninja streams exclusively there. And it wouldn't surprise me if, once the next console comes out, their next big Halo game comes out, if they invest more money to get other content creators exclusively on Mixer, and they can make Mixer a solid Twitch competitor, and maybe make the playing field look more like it is with China, where companies spend a lot more money for content rights and that type of thing and personalities than here, where Twitch reigns supreme. So, there's a lot of things that they are doing. There's lots of things that they could be doing more of within these realms. But I think in general, they're making the right moves in gaming right now.
Hill: Is there anything in the gaming industry, whether it's with Microsoft or Arcade, or even just the publishers themselves, Electronic Arts, Take-Two Interactive, Activision Blizzard, etc., anything going into the holiday season we should be watching for?
Bush: I don't think there is too much that is unique to be looking for this holiday season. I think it's going to be more of the same. More games being published, more people buying games. What's going to be most interesting is the next holiday season, when the next PlayStation console comes out, when the next Xbox console comes out. We'll start seeing early signs of what the next era of the gaming titans will look like. This is the end of an era right now. Maybe not the most important. It's ramping up to the next phase.
Hill: I like you're already looking ahead to 2020.
Bush: I am. But, I will say with Microsoft, it's important to put a lot of these big numbers in perspective because they just have so much freakin' money, Chris. They're raising their dividend 11%. They're going to spend another $40 billion on share repurchases. They produced about $40 billion in free cash flow just this past year. That grew about 20%. So, when you think about increasing their dividend 11%, there's a chance that they might actually be spending a lower percentage of their cash flow next year on dividends than this year. $40 billion is less than 4% of their market cap, and is equivalent to their free cash flow, roughly. So there's a chance they might not even dive into their $130 billion or so cash pool, which is mind blowing. So, yeah, there's a ton they could do. It wouldn't surprise me if they make more acquisitions. I liked Microsoft's acquisition of GitHub, for example, a year ago. It wouldn't surprise me if they do more things working with developers, more data analytics, maybe acquiring an Alteryx or Elastic, more software related companies. They certainly are massive and have tons of options that they can pursue.
Hill: I'm not saying it's not a challenge for the people at Microsoft, but it's got to be kind of fun to be in those conversations. It's basically, "Alright. Thank you all for coming to this conference room. What are we going to do with all this money?"
Bush: Yeah, there aren't many rooms in the world that are like, "Alright, everyone, we have $100 billion to figure out what to do with. What do we feel like buying now?" [laughs]
Hill: [laughs] "Jen, get up to the whiteboard. Let's start brainstorming here."
Three quick things before we wrap up. Next Monday and Tuesday, a bunch of us are going to be in Washington D.C. for a Fool member event. We're still going to be bringing you episodes of MarketFoolery. We've already recorded one of those, ready to go.
Second, this afternoon, Andy Cross, Jason Moser, and I are going to be doing a live Q&A on YouTube. The subject -- speaking of Microsoft -- is dividends, dividend payers. Check that out. It's free to subscribe to The Motley Fool's YouTube channel. Check that out!
And last but not least, shout out to Anthony, one of the dozens of listeners, visiting from Andorra. Across the Atlantic. Thank you to Anthony for stopping by!
If you want to learn more about gaming and you're on Twitter and you're just looking for a good follow, follow Aaron Bush, for crying out loud. @AaronBush100 is the handle. Thanks for being here!
Bush: Thanks for having me, Chris!
Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against so don't buy or sell stocks based solely on what you hear. That'll do it for this edition of MarketFoolery! The show's mixed by Dan Boyd. I'm Chris Hill. Thanks for listening! We'll see you on Monday!
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Aaron Bush owns shares of Activision Blizzard, Alphabet (C shares), Alteryx, Apple, Booking Holdings, Electronic Arts, Take-Two Interactive, Twilio, and Twitter. Chris Hill has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Alteryx, Apple, Booking Holdings, Elastic N V, Microsoft, Splunk, Take-Two Interactive, Twilio, and Twitter. The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, and long January 2021 $85 calls on Microsoft. The Motley Fool recommends Electronic Arts and New Relic. The Motley Fool has a disclosure policy.
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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In this episode of MarketFoolery, host Chris Hill talks with Motley Fool analyst and video game industry whiz Aaron Bush about somemarket news Data analytics company Datadog (NASDAQ: DDOG) went public, and despite an increasingly bearish IPO market, investors seem pretty excited about this one. They recently struck a deal with Ninja, one of the largest gaming content creators, to stream exclusively on Mixer, which is Microsoft's Twitch competitor that I think most people don't even know that they have. And it wouldn't surprise me if, once the next console comes out, their next big Halo game comes out, if they invest more money to get other content creators exclusively on Mixer, and they can make Mixer a solid Twitch competitor, and maybe make the playing field look more like it is with China, where companies spend a lot more money for content rights and that type of thing and personalities than here, where Twitch reigns supreme.
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In this episode of MarketFoolery, host Chris Hill talks with Motley Fool analyst and video game industry whiz Aaron Bush about somemarket news Data analytics company Datadog (NASDAQ: DDOG) went public, and despite an increasingly bearish IPO market, investors seem pretty excited about this one. Aaron Bush owns shares of Activision Blizzard, Alphabet (C shares), Alteryx, Apple, Booking Holdings, Electronic Arts, Take-Two Interactive, Twilio, and Twitter. The Motley Fool owns shares of and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Alteryx, Apple, Booking Holdings, Elastic N V, Microsoft, Splunk, Take-Two Interactive, Twilio, and Twitter.
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In this episode of MarketFoolery, host Chris Hill talks with Motley Fool analyst and video game industry whiz Aaron Bush about somemarket news Data analytics company Datadog (NASDAQ: DDOG) went public, and despite an increasingly bearish IPO market, investors seem pretty excited about this one. And it wouldn't surprise me if, once the next console comes out, their next big Halo game comes out, if they invest more money to get other content creators exclusively on Mixer, and they can make Mixer a solid Twitch competitor, and maybe make the playing field look more like it is with China, where companies spend a lot more money for content rights and that type of thing and personalities than here, where Twitch reigns supreme. The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, and long January 2021 $85 calls on Microsoft.
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In this episode of MarketFoolery, host Chris Hill talks with Motley Fool analyst and video game industry whiz Aaron Bush about somemarket news Data analytics company Datadog (NASDAQ: DDOG) went public, and despite an increasingly bearish IPO market, investors seem pretty excited about this one. Hill: Yeah, but, I don't know... Hill: I didn't know.
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8179d947-a1be-4647-a322-f71586b0f1c8
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719106.0
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2019-09-20 00:00:00 UTC
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US IPO Weekly Recap: Health and tech shine as week’s 5 IPOs close Friday up 20% or more
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DDOG
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https://www.nasdaq.com/articles/us-ipo-weekly-recap%3A-health-and-tech-shine-as-weeks-5-ipos-close-friday-up-20-or-more-2019
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nan
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nan
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Five health and tech companies went public this week, and each finished the week up at least 20%. One SPAC also IPO'd. Three companies and one SPAC submitted initial filings.
After weeks of nonstop news coverage, The We Company (WE) delayed its IPO to the 4Q19. Another mega IPO, Airbnb, announced it would seek public markets in 2020.
The leader of the pack was Datadog (DDOG), which priced above the upwardly revised range to raise $648 million and command a market cap of $8.7 billion (+32% vs. original midpoint). With strong growth (97% y/y) and a loyal customer base (146% dollar-based retention in 2018), the company is a solid contender in the highly competitive market for IT monitoring software. Despite coming to market at a premium valuation to the peer median, investors were willing to throw Datadog a bone given its growth and near-profitability; it finished the week up 34%.
Envista (NVST) priced within the range to raise $589 million and command a $3.4 billion market cap. The company, spun off from Danaher, has the second largest market share in its $23 billion market, despite single-digit growth. Envista priced at a clear discount to its peers and finished the week up 31%.
Ping Identity (PING) priced its $188 million deal at the midpoint to be valued at $1.2 billion, a discount to its cybersecurity peers. The company has lumpy sales growth, but it’s profitable (22% LTM adjusted EBITDA margin) with a large market opportunity. Backed by Vista Equity (its first IPO), Ping Identity finished the week up 29%.
IGM Biosciences (IGMS) popped 52% on its first day, the highest of the week, before coming down to end the week with a 34% gain. The company raised $175 million (70% bought by insiders) to command a $492 million market cap, and it finished the week up 34%. Exagen (XGN) priced its $50 million IPO at the bottom of the range and finished the week up 21%.
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
BellRing Brands (BRBR), the spinoff of Post’s active nutrition unit, filed for an estimated $300 million IPO. Eco-friendly packaging maker Karat Packaging (KRAT) filed for a $50 million IPO, and French antibody biotech Innate Pharma (IPHA) filed for a $100 million IPO. BI Acquisition (BIACU) filed to raise $200 million to acquire a raw materials business.
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/19/19, the Renaissance IPO Index was up 31.4% year-to-date, while the S&P 500 had a gain of 19.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). The Renaissance International IPO Index was up 13.0% year-to-date, while the ACWX was up 12.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
The article US IPO Weekly Recap: Health and tech shine as week’s 5 IPOs close Friday up 20% or more originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
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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The leader of the pack was Datadog (DDOG), which priced above the upwardly revised range to raise $648 million and command a market cap of $8.7 billion (+32% vs. original midpoint). With strong growth (97% y/y) and a loyal customer base (146% dollar-based retention in 2018), the company is a solid contender in the highly competitive market for IT monitoring software. Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security.
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The leader of the pack was Datadog (DDOG), which priced above the upwardly revised range to raise $648 million and command a market cap of $8.7 billion (+32% vs. original midpoint). Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
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The leader of the pack was Datadog (DDOG), which priced above the upwardly revised range to raise $648 million and command a market cap of $8.7 billion (+32% vs. original midpoint). IPO Market Snapshot The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The article US IPO Weekly Recap: Health and tech shine as week’s 5 IPOs close Friday up 20% or more originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
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The leader of the pack was Datadog (DDOG), which priced above the upwardly revised range to raise $648 million and command a market cap of $8.7 billion (+32% vs. original midpoint). Five health and tech companies went public this week, and each finished the week up at least 20%. Envista (NVST) priced within the range to raise $589 million and command a $3.4 billion market cap.
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fb0b805f-a745-4faa-a20a-34257e2cd535
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719107.0
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2019-09-19 00:00:00 UTC
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What Happened in the Stock Market Today
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DDOG
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https://www.nasdaq.com/articles/what-happened-in-the-stock-market-today-2019-09-19
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Major benchmarks waffled on Thursday, rising in the morning but slipping in the afternoon. The Dow Jones Industrial Average (DJINDICES: ^DJI) fell slightly and the S&P 500 (SNPINDEX: ^GSPC) was flat. Healthcare was the strongest sector while industrials were laggards.
Today's stock market
Data source: Yahoo! Finance.
2019 has been a big year for initial public offerings (IPOs), and two tech stocks made successful debuts today. Datadog (NASDAQ: DDOG) and Ping Identity Holding (NYSE: PING) skyrocketed in their first day of trading.
Image source: Getty Images.
Investors eager for shares of Datadog
Datadog, a cloud-based software specialist providing tools for data monitoring and analytics, made its debut as a public company. Shares soared 39.1% above the offering price to close at $37.55, valuing the company at $11 billion.
New York-based Datadog sells software-as-a-service (SaaS) products that allow developers, operations teams, and business users to monitor and analyze the performance of software applications running in public, private, and hybrid clouds. Founded in 2010, the company has over 8,800 customers and is growing rapidly, but remains unprofitable. Revenue in 2018 grew 97% to $198.1 million and in the first half of 2019 increased 79% year over year to $153.3 million. Net loss in the first half was $13.4 million.
Datadog is riding the wave of businesses migrating to cloud computing and believes it can grow by adding new customers, growing its offering of tools, and expanding internationally. Investors gave the company a nosebleed valuation today, but if it continues to succeed in exploiting a market opportunity it estimates at $35 billion, its shareholders will be howling with delight.
Ping proves popular on Wall Street
Investors also gave a warm welcome to Ping Identity Holding in its first day of public trading. Shares of the Denver-based cybersecurity specialist jumped 34.1% above the offering price to end the session at $20.11, giving the company a valuation of $1.6 billion.
Ping operates in a growing corner of the cybersecurity world called identity management. It sells its platform as "Intelligent Identity," using artificial intelligence and machine learning to analyze user and software behavior across cloud, on-premise systems, and Internet of Things devices to identify threats and insert additional authentication measures when necessary. Ping claims to have an advantage over cloud-only identity companies like Okta that tend to focus on employee use cases.
Ping isn't growing as fast as Datadog, with 2018 revenue rising 17% to $202 million, but the company has won success with large enterprises. It claims 50% of Fortune 100 companies among its 1,275 customers, including the 12 largest U.S. banks, eight of the 10 largest pharmaceutical companies, and five of the seven largest U.S. retailers.
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*Stock Advisor returns as of June 1, 2019.
Jim Crumly owns shares of Okta. The Motley Fool owns shares of and recommends Okta. The Motley Fool has a disclosure policy.
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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Datadog (NASDAQ: DDOG) and Ping Identity Holding (NYSE: PING) skyrocketed in their first day of trading. New York-based Datadog sells software-as-a-service (SaaS) products that allow developers, operations teams, and business users to monitor and analyze the performance of software applications running in public, private, and hybrid clouds. Investors gave the company a nosebleed valuation today, but if it continues to succeed in exploiting a market opportunity it estimates at $35 billion, its shareholders will be howling with delight.
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Datadog (NASDAQ: DDOG) and Ping Identity Holding (NYSE: PING) skyrocketed in their first day of trading. Today's stock market Data source: Yahoo! 2019 has been a big year for initial public offerings (IPOs), and two tech stocks made successful debuts today.
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Datadog (NASDAQ: DDOG) and Ping Identity Holding (NYSE: PING) skyrocketed in their first day of trading. Investors eager for shares of Datadog Datadog, a cloud-based software specialist providing tools for data monitoring and analytics, made its debut as a public company. Ping isn't growing as fast as Datadog, with 2018 revenue rising 17% to $202 million, but the company has won success with large enterprises.
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Datadog (NASDAQ: DDOG) and Ping Identity Holding (NYSE: PING) skyrocketed in their first day of trading. Today's stock market Data source: Yahoo! Ping isn't growing as fast as Datadog, with 2018 revenue rising 17% to $202 million, but the company has won success with large enterprises.
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3e4d6937-71aa-483c-a62c-7432d1abc866
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719108.0
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2019-09-19 00:00:00 UTC
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Datadog IPO: 14 Things to Know About DDOG Stock’s Debut
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DDOG
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https://www.nasdaq.com/articles/datadog-ipo%3A-14-things-to-know-about-ddog-stocks-debut-2019-09-19
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The Datadog IPO is complete and the company is now trading on the NASDAQ.
Source: Blackboard / Shutterstock
Here’s what to know about the Datadog IPO.
The Datadog (NASDAQ:) IPO priced shares of DDOG at $27.
This is well above the company’s initial range of $19 to $22, which was later revised to $24 to $26.
With those all selling, this has the Datadog IPO raising $648 million in funds for the company.
That’s another possible $97.20 million for the company.
Holders of Class A shares get one vote each and those with Class B shares get 10 votes each.
This includes data and analytics monitoring tools.
The first half of 2019 has seen the company lose a total of $13 million.
That’ almost double the company’s revenue of $85 million reported during the same time last year.
You can follow links to learn more about the Datadog IPO.
DDOG stock was up 37% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
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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The Datadog (NASDAQ:) IPO priced shares of DDOG at $27. DDOG stock was up 37% as of Thursday afternoon. With those all selling, this has the Datadog IPO raising $648 million in funds for the company.
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The Datadog (NASDAQ:) IPO priced shares of DDOG at $27. DDOG stock was up 37% as of Thursday afternoon. The Datadog IPO is complete and the company is now trading on the NASDAQ.
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The Datadog (NASDAQ:) IPO priced shares of DDOG at $27. DDOG stock was up 37% as of Thursday afternoon. The Datadog IPO is complete and the company is now trading on the NASDAQ.
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The Datadog (NASDAQ:) IPO priced shares of DDOG at $27. DDOG stock was up 37% as of Thursday afternoon. With those all selling, this has the Datadog IPO raising $648 million in funds for the company.
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91bd520d-2d00-4b12-91b7-1b23dd2d57ec
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719109.0
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2019-09-18 00:00:00 UTC
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Datadog fetches $8.7 billion valuation, pricing IPO above the range at $27
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DDOG
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https://www.nasdaq.com/articles/datadog-fetches-%248.7-billion-valuation-pricing-ipo-above-the-range-at-%2427-2019-09-18
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nan
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nan
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Datadog, which provides a monitoring and analytics platform for companies' technology stacks, raised $648 million by offering 24 million shares at $27, above the upwardly-revised range of $24 to $26. The company originally filed at a range of $19 to $22. At the offer price, Datadog commands a market cap of $8.7 billion. Earlier on Wednesday, news broke that competitor Cisco had offered to buy the company for significantly more than $7 billion.
Datadog plans to list on the Nasdaq under the symbol DDOG. Morgan Stanley, Goldman Sachs, J.P. Morgan, Credit Suisse, Barclays, Jefferies and RBC Capital Markets acted as lead managers on the deal.
The article Datadog fetches $8.7 billion valuation, pricing IPO above the range at $27 originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
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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Datadog plans to list on the Nasdaq under the symbol DDOG. At the offer price, Datadog commands a market cap of $8.7 billion. Earlier on Wednesday, news broke that competitor Cisco had offered to buy the company for significantly more than $7 billion.
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Datadog plans to list on the Nasdaq under the symbol DDOG. At the offer price, Datadog commands a market cap of $8.7 billion. The article Datadog fetches $8.7 billion valuation, pricing IPO above the range at $27 originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
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Datadog plans to list on the Nasdaq under the symbol DDOG. The article Datadog fetches $8.7 billion valuation, pricing IPO above the range at $27 originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security.
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Datadog plans to list on the Nasdaq under the symbol DDOG. The article Datadog fetches $8.7 billion valuation, pricing IPO above the range at $27 originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security.
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2853803f-f73c-4b64-9e10-468128a9d9bc
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719110.0
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2019-09-18 00:00:00 UTC
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Analytics Unicorn Datadog Will Fetch an $8 Billion Valuation with its IPO
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DDOG
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https://www.nasdaq.com/articles/analytics-unicorn-datadog-will-fetch-an-%248-billion-valuation-with-its-ipo-2019-09-18
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nan
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nan
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Featured under VC-Backed IPOs in our 2019 Fall IPO Preview: Datadog (DDOG) is scheduled to go public later this week.
Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise more than $600 million by offering 24.0 million shares at a price range of $24 to $22. That’s up from the original range of $19 to $22, a sign of strong demand. At the midpoint of the new range, Datadog would command a market value of $8.1 billion. Founded in 2010, Datadog booked $266 million in sales over the last 12 months. The New York, NY-based company plans to list on the Nasdaq under the symbol DDOG. Backed by Index Ventures, Datadog will be New York’s largest VC-backed tech IPO in more than 20 years.
Datadog (DDOG) joins the year's growing list of VC-backed tech companies going public at $5+ billion market caps (UBER, LYFT, WORK, PINS, CRWD). While its sales multiple is not cheap (28x trailing sales), neither are its closest comps. And with +82% growth in the LTM and near-breakeven EBITDA, Datadog may earn its place among the new elite software names.
Market size: $27+ billion
Competitors: AppDynamics, New Relic, Dynatrace
IPO Bookrunners: J.P. Morgan, Goldman Sachs, J.P. Morgan, and Credit Suisse
Read about other upcoming tech unicorns in our 2019 Fall IPO Preview.
DataDog's full IPO profile is available with a free trial of IPO Pro now, the IPO data platform giving you all of the IPO information you need, all in one place.
The article Analytics Unicorn Datadog Will Fetch an $8 Billion Valuation with its IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
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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Datadog (DDOG) joins the year's growing list of VC-backed tech companies going public at $5+ billion market caps (UBER, LYFT, WORK, PINS, CRWD). Featured under VC-Backed IPOs in our 2019 Fall IPO Preview: Datadog (DDOG) is scheduled to go public later this week. Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise more than $600 million by offering 24.0 million shares at a price range of $24 to $22.
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Datadog (DDOG) joins the year's growing list of VC-backed tech companies going public at $5+ billion market caps (UBER, LYFT, WORK, PINS, CRWD). Featured under VC-Backed IPOs in our 2019 Fall IPO Preview: Datadog (DDOG) is scheduled to go public later this week. Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise more than $600 million by offering 24.0 million shares at a price range of $24 to $22.
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Featured under VC-Backed IPOs in our 2019 Fall IPO Preview: Datadog (DDOG) is scheduled to go public later this week. Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise more than $600 million by offering 24.0 million shares at a price range of $24 to $22. The New York, NY-based company plans to list on the Nasdaq under the symbol DDOG.
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Datadog (DDOG) joins the year's growing list of VC-backed tech companies going public at $5+ billion market caps (UBER, LYFT, WORK, PINS, CRWD). Featured under VC-Backed IPOs in our 2019 Fall IPO Preview: Datadog (DDOG) is scheduled to go public later this week. Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise more than $600 million by offering 24.0 million shares at a price range of $24 to $22.
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882af0ae-1b8a-45ad-ab7c-159a7b849a65
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719111.0
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2023-12-01 00:00:00 UTC
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5 Stocks in Focus on Their Recent Dividend Hike
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DDS
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https://www.nasdaq.com/articles/5-stocks-in-focus-on-their-recent-dividend-hike-3
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nan
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nan
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U.S. stock markets have witnessed an impressive rally in the first seven months of this year after a highly disappointing 2022. After that volatility returned on Wall Street, which ended in negative territory in the last three successive months. However, Wall Street bounced back with more pace in November.
Most of the market participants are confident that the Fed is through with its current rate hike cycle buoyed by a steadily declining inflation rate, cooling down of several key economic data and a slowdown in the resilient labor market.
Despite these positives, we should remain watchful since any external disturbances like geopolitical conflict or oil price fluctuation may create volatility in markets. Moreover, we are not out of the woods, as inflation is still highly elevated.
Stocks to Watch
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments.
Five such companies are — Dillard's Inc. DDS, CDW Corp. CDW, TransAlta Corp. TAC, TotalEnergies SE TTE and Churchill Downs Inc. CHDN. Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dillard's is a large departmental store chain featuring fashion apparel and home furnishing. As of Jul 29, Dillard's operated 274 full-line Dillard’s stores and 27 clearance stores in 29 states. DDS also sells its merchandize through the Internet at www.dillards.com. Stores are mainly located in the Southwest, Southeast, and Midwest regions of the United States.
DDS’ primary product categories comprise women’s and children’s apparel, shoes, accessories and lingerie, men’s clothing and accessories, cosmetics, home, and children’s clothing. Its merchandise mix consists of both branded and private-label items.
On Nov 16, 2023, Dillard's declared that its shareholders would receive a dividend of $20 per share on Jan 8, 2024. It has a dividend yield of 0.3%. Over the past five years, DDS has increased its dividend six times, and its payout ratio presently stays at 2% of earnings. Check DDS’ dividend history here.
Dillard's, Inc. Dividend Yield (TTM)
Dillard's, Inc. dividend-yield-ttm | Dillard's, Inc. Quote
CDW’s performance is affected due to weakness across the Corporate and Small Business segments. The Corporate business is affected due to a significant decline in client device demand coupled with the postponement of upgrades and utilization of existing products. Owing to the above-mentioned factors, CDW continues to expect its 2023 non-GAAP earnings to be flat to slightly down year over year. Stiff competition is a concern.
On Nov 22, 2023, CDW declared that its shareholders would receive a dividend of $0.62 per share on Dec 12, 2023. It has a dividend yield of 1.2%. Over the past five years, CDW has increased its dividend five times, and its payout ratio presently stays at 25% of earnings. Check CDW’s dividend history here.
CDW Corporation Dividend Yield (TTM)
CDW Corporation dividend-yield-ttm | CDW Corporation Quote
TransAlta is engaged in the development, production, and sale of electric energy. TAC is Canada's largest non-regulated electric generation and marketing company. TAC operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments.
On Nov 22, 2023, TransAlta declared that its shareholders would receive a dividend of $0.0437 per share on Apr 1, 2024. It has a dividend yield of 2%. Over the past five years, TAC has increased its dividend 14 times, and its payout ratio presently stays at 11% of earnings. Check TAC’s dividend history here.
TransAlta Corporation Dividend Yield (TTM)
TransAlta Corporation dividend-yield-ttm | TransAlta Corporation Quote
TotalEnergies is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. TTE operates in more than 130 countries across five continents.
TTE’s operations are divided into four main segments: Exploration & Production, Integrated Gas, Renewables & Power, which spearheads TotalEnergies’ ambitions in low-carbon businesses by expanding in downstream gas and renewable energies as well as in energy efficiency businesse, Refining and Chemicals, which includes all of its bioenergies activities and a new Biofuels division and Marketing & Services, which deals with the supply and sale of petroleum products. TTE also has interests in coal mining and power generation.
On Nov 28, 2023, TotalEnergies declared that its shareholders would receive a dividend of $0.8092 per share on Jan 25, 2024. It has a dividend yield of 3.3%. Over the past five years, TTE has increased its dividend nine times, and its payout ratio presently stays at 23% of earnings. Check TTE’s dividend history here.
TotalEnergies SE Sponsored ADR Dividend Yield (TTM)
TotalEnergies SE Sponsored ADR dividend-yield-ttm | TotalEnergies SE Sponsored ADR Quote
Churchill Downs operates as a racing, online wagering, and gaming entertainment company in the United States. CHDN operates through Live and Historical Racing, TwinSpires, and Gaming segments. CHDN operates pari-mutuel gaming entertainment venues, TwinSpires, an online wagering platform for horse racing, sports, and iGaming, retail sportsbooks; and casino gaming.
CHDN also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information, and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, CHDN manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses.
On Nov 29, 2023, Churchill Downs declared that its shareholders would receive a dividend of $0.382 per share on Jan 5, 2024. It has a dividend yield of 0.4%. Over the past five years, CHDN has increased its dividend six times, and its payout ratio presently stays at 7% of earnings. Check CHDN’s dividend history here.
Churchill Downs, Incorporated Dividend Yield (TTM)
Churchill Downs, Incorporated dividend-yield-ttm | Churchill Downs, Incorporated Quote
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report
CDW Corporation (CDW) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Five such companies are — Dillard's Inc. DDS, CDW Corp. CDW, TransAlta Corp. TAC, TotalEnergies SE TTE and Churchill Downs Inc. CHDN. DDS also sells its merchandize through the Internet at www.dillards.com. DDS’ primary product categories comprise women’s and children’s apparel, shoes, accessories and lingerie, men’s clothing and accessories, cosmetics, home, and children’s clothing.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report TransAlta Corporation (TAC) : Free Stock Analysis Report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report CDW Corporation (CDW) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Five such companies are — Dillard's Inc. DDS, CDW Corp. CDW, TransAlta Corp. TAC, TotalEnergies SE TTE and Churchill Downs Inc. CHDN. DDS also sells its merchandize through the Internet at www.dillards.com.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report TransAlta Corporation (TAC) : Free Stock Analysis Report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report CDW Corporation (CDW) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Five such companies are — Dillard's Inc. DDS, CDW Corp. CDW, TransAlta Corp. TAC, TotalEnergies SE TTE and Churchill Downs Inc. CHDN. DDS also sells its merchandize through the Internet at www.dillards.com.
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Five such companies are — Dillard's Inc. DDS, CDW Corp. CDW, TransAlta Corp. TAC, TotalEnergies SE TTE and Churchill Downs Inc. CHDN. DDS also sells its merchandize through the Internet at www.dillards.com. DDS’ primary product categories comprise women’s and children’s apparel, shoes, accessories and lingerie, men’s clothing and accessories, cosmetics, home, and children’s clothing.
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f831b38a-8ba2-4a7e-8a0a-e17ea9b494e9
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719112.0
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2023-11-17 00:00:00 UTC
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Consumer Sector Update for 11/17/2023: DDS, GPS, SPB, DDC
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DDS
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https://www.nasdaq.com/articles/consumer-sector-update-for-11-17-2023%3A-dds-gps-spb-ddc
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nan
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nan
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Consumer stocks were mixed late Friday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) declining 0.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.7%.
In corporate news, Dillard's (DDS) shares jumped 7.4% after the company announced late Thursday a special dividend of $20 a share, payable Jan. 8 to shareholders of record as of Dec. 15.
Gap (GPS) shares surged 29% after the retailer late Thursday reported quarterly earnings and revenue that topped estimates by analysts.
Spectrum Brands (SPB) said sales in the current fiscal year may drop on annual basis. Its shares tumbled 12%.
DDC Enterprise (DDC) said Friday it priced its initial public offering of 3.9 million class A ordinary shares at $8.50 per share for expected gross proceeds of $33.2 million. Its shares slumped 25%.
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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In corporate news, Dillard's (DDS) shares jumped 7.4% after the company announced late Thursday a special dividend of $20 a share, payable Jan. 8 to shareholders of record as of Dec. 15. Gap (GPS) shares surged 29% after the retailer late Thursday reported quarterly earnings and revenue that topped estimates by analysts. Spectrum Brands (SPB) said sales in the current fiscal year may drop on annual basis.
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In corporate news, Dillard's (DDS) shares jumped 7.4% after the company announced late Thursday a special dividend of $20 a share, payable Jan. 8 to shareholders of record as of Dec. 15. Consumer stocks were mixed late Friday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) declining 0.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.7%. Gap (GPS) shares surged 29% after the retailer late Thursday reported quarterly earnings and revenue that topped estimates by analysts.
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In corporate news, Dillard's (DDS) shares jumped 7.4% after the company announced late Thursday a special dividend of $20 a share, payable Jan. 8 to shareholders of record as of Dec. 15. Consumer stocks were mixed late Friday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) declining 0.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.7%. DDC Enterprise (DDC) said Friday it priced its initial public offering of 3.9 million class A ordinary shares at $8.50 per share for expected gross proceeds of $33.2 million.
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In corporate news, Dillard's (DDS) shares jumped 7.4% after the company announced late Thursday a special dividend of $20 a share, payable Jan. 8 to shareholders of record as of Dec. 15. Consumer stocks were mixed late Friday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) declining 0.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.7%. Gap (GPS) shares surged 29% after the retailer late Thursday reported quarterly earnings and revenue that topped estimates by analysts.
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229c790a-07a1-44b0-aeff-e672c6a2e190
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719113.0
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2023-11-14 00:00:00 UTC
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Dillard's Reaches Analyst Target Price
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DDS
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https://www.nasdaq.com/articles/dillards-reaches-analyst-target-price-1
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nan
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nan
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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $295.33, changing hands for $298.59/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets within the Zacks coverage universe contributing to that average for Dillard's Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $180.00. And then on the other side of the spectrum one analyst has a target as high as $410.00. The standard deviation is $115.001.
But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDS crossing above that average target price of $295.33/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $295.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Dillard's Inc.:
RECENT DDS ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 0 0 0 0
Buy ratings: 0 0 0 0
Hold ratings: 1 1 1 1
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 4.0 4.0 4.0 4.0
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DDS — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
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SVA Videos
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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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $295.33, changing hands for $298.59/share. And so with DDS crossing above that average target price of $295.33/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $295.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $295.33, changing hands for $298.59/share. But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDS crossing above that average target price of $295.33/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $295.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with DDS crossing above that average target price of $295.33/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $295.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $295.33, changing hands for $298.59/share. But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $295.33, changing hands for $298.59/share. But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDS crossing above that average target price of $295.33/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $295.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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5f896bbe-8a49-4528-9e4b-bb330d51a093
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719114.0
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2023-11-10 00:00:00 UTC
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Dillard's (DDS) Q3 Earnings Surpass Estimates, Sales Miss
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DDS
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https://www.nasdaq.com/articles/dillards-dds-q3-earnings-surpass-estimates-sales-miss
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nan
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nan
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Dillard's Inc. DDS posted third-quarter fiscal 2023 results, wherein the bottom lines surpassed the Zacks Consensus Estimate, while sales missed. This marked the company’s 11th straight quarter of bottom-line beat. Results gained from better inventory management and strong consumer demand. However, DDS sales and earnings declined year over year.
Adjusted earnings of $9.49 per share significantly surpassed the Zacks Consensus Estimate of $7.06. However, the bottom line declined 13.4% from the year-ago quarter's $10.96 per share.
Net sales of $1,476.4 million decreased 4.4% from the prior-year quarter and missed the Zacks Consensus Estimate of $1,509 million.
Dillard’s shares declined 5.4% yesterday, driven by the soft third-quarter fiscal 2023 performance. Shares of the Zacks Rank #3 (Hold) company have lost 19.8% in the past three months compared with the industry's decline of 18.4%.
Image Source: Zacks Investment Research
Q3 Details
Total retail sales (excluding CDI Contractors, LLC) fell 6% year over year to $1,409 million. Comparable store sales also declined 6% year over year. Retail sales were affected by the challenging sales environment during the quarter, particularly the weakness experiences at the start of September.
Our model had predicted a comps decline of 4.7% for the fiscal third quarter. The adverse performance compared to our estimate can be attributed to the tough retail environment in the quarter, with weakness in September.
In the quarter, the company witnessed robust sales in cosmetics, and home and furniture categories. On the flip side, juniors’ and children’s apparel was among the underperforming categories.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote
The consolidated gross margin contracted 110 basis points (bps) year over year to 43.5% in the fiscal third quarter. The retail gross margin of 45.3% reflected a year-over-year decline of 40 bps, driven by gross margin declines in the men’s apparel and accessories, juniors’ and children’s apparel, and shoes categories. Additionally, the company witnessed a moderate decline in ladies’ accessories and lingerie. This was offset by decent gross margin growth in the home and furniture category, while cosmetics was flat.
Dillard's consolidated SG&A expenses (as a percentage of sales) expanded 180 bps to 28.6% from the prior-year quarter's 26.8%. In dollar terms, SG&A expenses (operating expenses) grew 1.9% to $421.8 million. The increase in operating expenses is mainly attributed to higher payroll and payroll-related expenses.
Our model had predicted SG&A expenses (as a percentage of sales) to increase 190 bps in the fiscal third quarter. In dollar terms, we expected SG&A expenses to increase 2.5% year over year to $424.3 million.
Financial Details
Dillard’s ended the quarter with cash and cash equivalents of $842 million, a long-term debt of $321.4 million, and a total shareholders' equity of $1,813.6 million. The company provided $447.1 million of net cash from operating activities as of Oct 28, 2023.
Capital expenditure for fiscal 2023 is likely to be $140 million, suggesting growth from the year-ago figure of $120 million.
In the fiscal third quarter, the company repurchased 151,000 Class A common stock for $48 million, under its existing repurchase program. As of Oct 28, DDS had an authorization worth $410.2 million remaining under its share repurchase program announced in May 2023.
Store Update
As of Oct 28, 2023, DDS operated 273 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
Outlook
For fiscal 2023, Dillard’s expects depreciation and amortization of $180 million, whereas it reported $188 million in the prior year. The company expects a net interest and debt (income) of ($3) million, whereas it recorded expenses of $31 million in the prior year. DDS anticipates rentals of $22 million for fiscal 2023.
Stocks to Consider
Here are some better-ranked stocks that you may want to consider, namely, American Eagle Outfitters AEO, Ross Stores ROST and Deckers Outdoor DECK.
American Eagle, a specialty retailer of casual apparel, accessories and footwear, currently flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter surprise of 43.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s current fiscal year’s revenues and earnings suggests growth of 2.4% and 36.1%, respectively, from the year-ago quarter’s reported figures.
Ross Stores, an off-price retailer of apparel and home accessories, currently has a Zacks Rank #2 (Buy). ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
The Zacks Consensus Estimate for Ross Stores’ current financial year’s sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago quarter’s reported figures.
Deckers Outdoor is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Deckers Outdoor’s current fiscal year’s sales and EPS suggests growth of 11.1% and 20.2%, respectively, from the year-ago quarter’s reported figures. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
Zacks Names "Single Best Pick to Double"
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's Inc. DDS posted third-quarter fiscal 2023 results, wherein the bottom lines surpassed the Zacks Consensus Estimate, while sales missed. However, DDS sales and earnings declined year over year. As of Oct 28, DDS had an authorization worth $410.2 million remaining under its share repurchase program announced in May 2023.
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Dillard's Inc. DDS posted third-quarter fiscal 2023 results, wherein the bottom lines surpassed the Zacks Consensus Estimate, while sales missed. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report To read this article on Zacks.com click here. However, DDS sales and earnings declined year over year.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted third-quarter fiscal 2023 results, wherein the bottom lines surpassed the Zacks Consensus Estimate, while sales missed. However, DDS sales and earnings declined year over year.
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However, DDS sales and earnings declined year over year. Dillard's Inc. DDS posted third-quarter fiscal 2023 results, wherein the bottom lines surpassed the Zacks Consensus Estimate, while sales missed. As of Oct 28, DDS had an authorization worth $410.2 million remaining under its share repurchase program announced in May 2023.
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c2c3b3ec-16ab-4d0e-bffb-79414dc8b3fe
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719115.0
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2023-11-09 00:00:00 UTC
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Tapestry (TPR) Q1 Earnings Miss Estimates, Sales Rise Y/Y
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DDS
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https://www.nasdaq.com/articles/tapestry-tpr-q1-earnings-miss-estimates-sales-rise-y-y
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nan
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nan
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Tapestry, Inc. TPR reported soft first-quarter fiscal 2024 results, wherein the top and bottom lines missed the Zacks Consensus Estimate. This house of modern luxury accessories and lifestyle brands witnessed year-over-year growth in revenues and earnings.
The company has agreed to acquire Capri Holdings for nearly $8.5 billion. The deal will unite the six distinctive iconic brands into a powerful global house of luxury portfolio. Recently, Capri Holdings’ shareholders have approved the transaction. Tapestry is still working to obtain all the necessary regulatory approvals, including responding to the U.S. Federal Trade Commission’s second request. Management is confident about completing this transaction, which is likely to close next year.
We note that shares of this New York-based company have lost 22.2% in the past three months against the industry’s 6.2% rise.
Sales & Earnings Picture
Tapestry posted first-quarter earnings of 84 cents a share, lagging the Zacks Consensus Estimate of earnings of 90 cents per share. However, the metric grew 6.3% from the year-ago period.
Tapestry, Inc. Price, Consensus and EPS Surprise
Tapestry, Inc. price-consensus-eps-surprise-chart | Tapestry, Inc. Quote
Net sales were $1,513.2 million, missing the consensus estimate of $1,540 million. The metric rose 0.4% year over year. On a constant-currency basis, the top line inched up 2%, excluding an FX headwind of about 130 basis points (bps).
Let’s Delve Deeper
For the fiscal first quarter, net sales for Coach were $1,157.4 million, up 3% year over year. Kate Spade’s sales were $303.2 million, down 6% from the year-ago period. Net sales for Stuart Weitzman totaled $52.6 million, reflecting a decrease of 19% year over year.
International sales grew 7% at constant currency, including 9% in Greater China and 12% in Japan. The company delivered nearly in-line revenues in North America despite a tough consumer demand environment.
This Zacks Rank #3 (Hold) company realized 1% growth in direct-to-consumer sales at constant currency, with a low-single-digit rise in stores.
Margin Discussion
The consolidated gross profit was $1,097.7 million, up 4.1% from the year-ago period. Also, the gross margin increased 250 bps to 72.5%, gaining from operational efficiency and lower freight expenses.
Further, the company reported adjusted operating income of $272.8 million, up 7.4% from the prior-year quarter. Meanwhile, the operating margin was 18%, expanding 110 bps from the year-ago period. This increase was driven by disciplined expense management and gross margin gains.
Store Update
At the end of the quarter, Tapestry operated 330 Coach stores, 204 Kate Spade outlets and 36 Stuart Weitzman stores in North America. Internationally, the count was 604, 192 and 61 for Coach, Kate Spade and Stuart Weitzman, respectively.
Other Financial Details
Tapestry ended the quarter with cash, cash equivalents and short-term investments of $639 million, long-term debt of $1,6329.9 million and stockholders' equity of $2,415.7 million.
The company generated net cash of $75.3 million during the first quarter of the current fiscal year and free cash flow was an inflow of $54 million. The company incurred capital expenditures and implementation costs related to Cloud Computing of $29 million in the aforementioned period.
The company’s board has declared a quarterly cash dividend of 35 cents per share payable on Dec 26, 2023, to shareholders of record as of Dec 8, 2023. Tapestry expects to return nearly $325 million to shareholders via dividend payments for an annual dividend rate of $1.40 per share. This reflects an increase of 17% from the prior year.
Outlook
For fiscal 2024, Tapestry envisions revenues to be roughly $6.7 billion, reflecting a slight year-over-year rise on a reported basis. Net interest expenses are anticipated to be nearly $20 million while the tax rate is likely to be approximately 20%.
Adjusted earnings per share are projected to be $4.10-$4.15, representing nearly 6-7% growth from the prior year.
This guidance assumes no revenue or earnings contribution and deal-related costs from the proposed acquisition of Capri Holdings, gradual recovery in Greater China, and no worsening of inflationary pressures or consumer confidence.
Key Picks
Some better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 1,644% and 10%, respectively, from the year-ago period’s reported figures. ANF has a trailing four-quarter average earnings surprise of 724.8%.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 33% and 2.2%, respectively, from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 43.2%.
Dillard's, a department store retailer, currently carries a Zacks Rank #2 (Buy). DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
The Zacks Consensus Estimate for Dillard's fiscal 2024 sales indicates growth of 0.3% from the year-ago period’s reported figure.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Key Picks Some better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks Some better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks Some better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
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Key Picks Some better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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c5b25ad6-2314-488e-b240-03d7ff5bd624
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719116.0
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2023-11-09 00:00:00 UTC
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Compared to Estimates, Dillard's (DDS) Q3 Earnings: A Look at Key Metrics
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DDS
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https://www.nasdaq.com/articles/compared-to-estimates-dillards-dds-q3-earnings%3A-a-look-at-key-metrics
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Dillard's (DDS) reported $1.48 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 4.4%. EPS of $9.49 for the same period compares to $10.96 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of -2.15%. The company delivered an EPS surprise of +34.42%, with the consensus EPS estimate being $7.06.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dillard's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable store sales - YoY change (Domestic retail): -6% compared to the -1.9% average estimate based on three analysts.
Service Charges, Interest and Other Income: $27.80 million versus the three-analyst average estimate of $28.46 million. The reported number represents a year-over-year change of -4.1%.
Sales: $1.48 billion versus the three-analyst average estimate of $1.49 billion. The reported number represents a year-over-year change of -4.4%.
View all Key Company Metrics for Dillard's here>>>
Shares of Dillard's have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS) reported $1.48 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 4.4%. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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Dillard's (DDS) reported $1.48 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 4.4%. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of -2.15%.
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Dillard's (DDS) reported $1.48 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 4.4%. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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Dillard's (DDS) reported $1.48 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 4.4%. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Dillard's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales - YoY change (Domestic retail): -6% compared to the -1.9% average estimate based on three analysts.
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ed1edaaa-471c-4e5d-bb17-773991368954
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719117.0
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2023-11-09 00:00:00 UTC
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Dillard's Q3 Earnings Top Estimates, But Net Sales Miss
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DDS
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https://www.nasdaq.com/articles/dillards-q3-earnings-top-estimates-but-net-sales-miss
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nan
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that net income for the third quarter was $155.3 million or $9.49 per share, down from $187.9 million or $10.96 per share in the prior-year quarter.
Net sales for the quarter declined 6 percent to $1.48 billion from $1.54 billion in the same quarter last year. Comparable store retail sales for the quarter decreased 6 percent.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $6.70 per share on net sales of $1.51 billion for the quarter. Analysts' estimates typically exclude special items.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
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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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that net income for the third quarter was $155.3 million or $9.49 per share, down from $187.9 million or $10.96 per share in the prior-year quarter. Comparable store retail sales for the quarter decreased 6 percent. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $6.70 per share on net sales of $1.51 billion for the quarter.
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that net income for the third quarter was $155.3 million or $9.49 per share, down from $187.9 million or $10.96 per share in the prior-year quarter. Net sales for the quarter declined 6 percent to $1.48 billion from $1.54 billion in the same quarter last year. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $6.70 per share on net sales of $1.51 billion for the quarter.
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that net income for the third quarter was $155.3 million or $9.49 per share, down from $187.9 million or $10.96 per share in the prior-year quarter. Net sales for the quarter declined 6 percent to $1.48 billion from $1.54 billion in the same quarter last year. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $6.70 per share on net sales of $1.51 billion for the quarter.
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that net income for the third quarter was $155.3 million or $9.49 per share, down from $187.9 million or $10.96 per share in the prior-year quarter. Net sales for the quarter declined 6 percent to $1.48 billion from $1.54 billion in the same quarter last year. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $6.70 per share on net sales of $1.51 billion for the quarter.
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f0db1a64-b360-4b79-9603-c0e0630c25dc
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719118.0
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2023-11-03 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DDS
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DDS
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-dds-0
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nan
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In trading on Friday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $327.29, changing hands as high as $340.04 per share. Dillard's Inc. shares are currently trading up about 1.8% on the day. The chart below shows the one year performance of DDS shares, versus its 200 day moving average:
Looking at the chart above, DDS's low point in its 52 week range is $272.58 per share, with $417.86 as the 52 week high point — that compares with a last trade of $332.42.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Also see:
Top Ten Hedge Funds Holding PPIE
SM market cap history
EVRI Insider Buying
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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In trading on Friday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $327.29, changing hands as high as $340.04 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $272.58 per share, with $417.86 as the 52 week high point — that compares with a last trade of $332.42. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Top Ten Hedge Funds Holding PPIE SM market cap history EVRI Insider Buying 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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In trading on Friday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $327.29, changing hands as high as $340.04 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $272.58 per share, with $417.86 as the 52 week high point — that compares with a last trade of $332.42. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Top Ten Hedge Funds Holding PPIE SM market cap history EVRI Insider Buying 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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In trading on Friday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $327.29, changing hands as high as $340.04 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $272.58 per share, with $417.86 as the 52 week high point — that compares with a last trade of $332.42. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Top Ten Hedge Funds Holding PPIE SM market cap history EVRI Insider Buying 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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In trading on Friday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $327.29, changing hands as high as $340.04 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $272.58 per share, with $417.86 as the 52 week high point — that compares with a last trade of $332.42. Dillard's Inc. shares are currently trading up about 1.8% on the day.
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b359986f-1a07-4976-a945-65df7b5ce27e
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719119.0
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2023-11-02 00:00:00 UTC
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Earnings Preview: Dillard's (DDS) Q3 Earnings Expected to Decline
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DDS
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https://www.nasdaq.com/articles/earnings-preview%3A-dillards-dds-q3-earnings-expected-to-decline
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nan
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Wall Street expects a year-over-year decline in earnings on lower revenues when Dillard's (DDS) reports results for the quarter ended October 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This department store operator is expected to post quarterly earnings of $7.06 per share in its upcoming report, which represents a year-over-year change of -35.6%.
Revenues are expected to be $1.51 billion, down 2.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.96% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Dillard's?
For Dillard's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.92%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Dillard's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Dillard's would post earnings of $4.21 per share when it actually produced earnings of $7.98, delivering a surprise of +89.55%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Dillard's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Wall Street expects a year-over-year decline in earnings on lower revenues when Dillard's (DDS) reports results for the quarter ended October 2023. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Wall Street expects a year-over-year decline in earnings on lower revenues when Dillard's (DDS) reports results for the quarter ended October 2023. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Wall Street expects a year-over-year decline in earnings on lower revenues when Dillard's (DDS) reports results for the quarter ended October 2023. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Wall Street expects a year-over-year decline in earnings on lower revenues when Dillard's (DDS) reports results for the quarter ended October 2023. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-11-01 00:00:00 UTC
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Factors Likely to Decide Dillard's (DDS) Fate in Q3 Earnings
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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues of $1.51 billion indicates a 2.3% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $7.04 per share, indicating a 35.8% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 89.6%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 77.1%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Key Factors to Note
Dillard’s has been benefiting from better inventory management initiatives. The company’s efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business have been the key drivers.
On the store front, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Its activewear brands have been gaining market share in the quarter under review.
Also, the e-commerce business has been well-placed on the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal third-quarter performance to have gained from its focus on increasing productivity at existing stores, improved omni-channel platform and enhanced domestic operations.
However, Dillard’s has been witnessing continued cautiousness of consumers, particularly in ladies’ accessories and lingerie, and ladies’ apparel and shoes. This, along with higher payroll and payroll-related expenses, is likely to have dented the fiscal third-quarter performance.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dillard’s currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Caesars Entertainment CZR currently has an Earnings ESP of +37.22% and a Zacks Rank #2. CZR is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.92 billion, suggesting 1% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Caesars Entertainment’s third-quarter earnings is pegged at 26 cents, suggesting 8.3%
growth from the 24 cents reported in the year-ago quarter. The consensus mark has moved up by 2 cents in the past 30 days.
Marriott International MAR currently has an Earnings ESP of +1.59% and a Zacks Rank #3. MAR is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.91 billion, suggesting 11.2% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Marriott’s third-quarter earnings is pegged at $2.09, suggesting year-over-year growth of 23.8%. The consensus mark has moved up by a penny in the past 30 days.
Cinemark Holdings CNK currently has an Earnings ESP of +70.56% and a Zacks Rank #3. The company is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $798.6 million, suggesting 22.8% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Cinemark Holdings’ third-quarter earnings is pegged at 33 cents, suggesting 265% growth from that reported in the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
Cinemark Holdings Inc (CNK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports third-quarter fiscal 2023 numbers. On the store front, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
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Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report Cinemark Holdings Inc (CNK) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports third-quarter fiscal 2023 numbers. On the store front, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel.
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Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report Cinemark Holdings Inc (CNK) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports third-quarter fiscal 2023 numbers. On the store front, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel.
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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports third-quarter fiscal 2023 numbers. On the store front, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
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2023-10-19 00:00:00 UTC
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Macy's (M) Unveils New Online Fashion Platform Mstylelab
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https://www.nasdaq.com/articles/macys-m-unveils-new-online-fashion-platform-mstylelab
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Macy's, Inc. M recently announced the launch of mstylelab, an innovative fashion platform built on the metaverse infrastructure solution, Journee. The company’s new engagement platform is designed to blend the physical and digital worlds to create an advanced shopping experience for customers.
As part of the company’s web3 digital strategy, mstylelab provides a virtual platform for style inspiration and fashion immersion experiences for its customers. The new fashion platform leverages the latest technologies to enable users to embark on a mission of discovery, self-expression and connectivity. Compatible on any device at macys.com/mstylelab, the online platform will feature clothing from Macy’s new ‘On 34th’ brand.
Mstylelab users will have the option to log in with their macys.com profile or create a new one. They will be prompted to select a Mstylelab username, design and personalize a digital fabric to create a community identity and explore the virtual fashion environment.
Within the company’s online platform, users can choose from a wide collection of apparel from the On 34th brand. While navigating the star checkpoints, users will also be able to unlock a digital t-shirt that complements their personalized digital fabric.
As noted, the online platform will have the scope to develop over time, encompassing new immersive experiences and partnerships. With the advent of the holiday season, the activation will also exhibit the company’s Thanksgiving Day Parade metaverse experience.
What’s More?
Macy’s is on track to strengthen its omni-channel capabilities with investments in online shopping experiences, data and analytics, technology infrastructure, as well as better fulfillment capabilities. Incidentally, Macy’s expanded its omni-channel offerings, such as curbside, store pickup and same-day delivery, which bode well. However, M has been grappling with a tough macroeconomic backdrop, waning consumer confidence and a pullback in spending activity.
Image Source: Zacks Investment Research
The Zacks Rank #3 (Hold) company’s shares have gained 6.1% in the past month compared with the industry’s growth of 2.4%.
3 Solid Picks
A few better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 1,644% and 10%, respectively, from the year-ago period’s reported figures. ANF has a trailing four-quarter average earnings surprise of 724.8%.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 33% and 2.2%, respectively, from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 43.2%.
Dillard's, a department store retailer, currently sports a Zacks Rank #2 (Buy). DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
The Zacks Consensus Estimate for Dillard's fiscal 2024 sales indicates growth of 0.3% from the year-ago period’s reported figure.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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3 Solid Picks A few better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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3 Solid Picks A few better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here. 3 Solid Picks A few better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
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3 Solid Picks A few better-ranked stocks from the same space are Abercrombie & Fitch Co. ANF, American Eagle Outfitters, Inc. AEO and Dillard's, Inc. DDS. DDS has a trailing four-quarter earnings surprise of 77.1%, on average. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-10-13 00:00:00 UTC
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Walmart's (WMT) Upcoming Milk Facility to Serve Customers Better
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https://www.nasdaq.com/articles/walmarts-wmt-upcoming-milk-facility-to-serve-customers-better
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Walmart Inc. WMT is known for its unparalleled efforts toward enriching customers’ experiences and catering to their demands. The omnichannel retailer goes all the way to undertake relevant innovation to keep up with customers’ needs. In the latest move, Walmart unveiled plans to introduce an owned and operated milk processing facility in Valdosta, GA, which is expected to break ground later this year.
With this facility, the company aims to serve customers’ burgeoning demand for superior-quality milk. This innovative facility in Valdosta will also solidify Walmart’s supply chain and help the company make sourcing more transparent.
Creating nearly 400 jobs at Walmart, the upcoming facility will utilize locally sourced ingredients to handle the processing and packaging of a diverse range of milk choices. These include gallon, half-gallon, whole, 2%, 1%, skim and 1% chocolate milk under Walmart's Great Value and Sam's Club's Member's Mark brands. These products will be distributed to more than 750 Walmart stores and Sam's Clubs located in the Southeast region.
Incidentally, WMT inaugurated its first milk processing plant in Fort Wayne, IN, in 2018. In subsequent endeavors, the company expanded its investments by launching its inaugural case-ready beef facility in Thomasville, GA, and constructing a second case-ready beef facility in Olathe, KS. Additionally, Walmart forged equity investments and established long-term commercial partnerships with Sustainable Beef LLC (a rancher-owned enterprise) and a vertical farming company, Plenty.
Image Source: Zacks Investment Research
Focus on Elevating Customers’ Experience
Walmart has been pushing the edge out of the envelope with regard to its e-commerce efforts. It has undertaken a series of initiatives, including acquisitions, strategic partnerships and enhancements to its delivery and payment systems. In the realm of the supply chain, the company is fostering innovation, increasing capacity and launching new ventures like Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+ and Walmart Fulfillment Services.
In the second quarter of fiscal 2024, e-commerce sales surged 24% globally on omnichannel strength, including pickup and delivery. U.S. e-commerce sales rose 24%, driven by strength in pickup & delivery and advertising. The International segment’s e-commerce sales ascended 26% on store-fulfilled strength. At Sam’s Club, e-commerce sales jumped 18% on strong curbside performance.
Noteworthy milestones for Walmart include the acquisition of a significant stake in Flipkart, which has been bolstering its International segment. Walmart's majority ownership of India's digital transaction platform, PhonePe, is also significant.
Additionally, Walmart is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales. By the second quarter of fiscal 2024, Walmart U.S. had nearly 4,600 pickup locations and more than 4,000 same-day delivery stores.
All said, the abovementioned milk facility highlights Walmart’s commitment to upgrade its offerings and resonate with customers’ needs while keeping its pricing affordable. The Zacks Rank #2 (Buy) stock has rallied 23.7% in the past year compared with the industry’s growth of 21.3%.
3 Other Retail Picks
Ross Stores ROST, which operates off-price retail apparel and home fashion stores, currently sports a Zacks Rank #1 (Strong Buy). ROST has a trailing four-quarter earnings surprise of 11.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and earnings indicates growth of 7.1% and 19.4%, respectively, from the year-ago reported numbers.
Dillard's, Inc. DDS, a department store retailer, currently carries a Zacks Rank #2. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $6.66 to $7.04 in the past 60 days.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 11.2% and 4.9%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 14.3%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently carries a Zacks Rank #2. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently carries a Zacks Rank #2. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently carries a Zacks Rank #2. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Dillard's, Inc. DDS, a department store retailer, currently carries a Zacks Rank #2. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-10-12 00:00:00 UTC
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Zacks.com featured highlights include ON Semiconductor, Dillard's, Valero Energy, Upbound and AGNC Investment
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-on-semiconductor-dillards-valero-energy-upbound-and
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For Immediate Release
Chicago, IL – October 12, 2023 – Stocks in this week’s article are ON Semiconductor Corp. ON, Dillard's, Inc. DDS, Valero Energy Corp. VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC.
Buy 5 Stocks with High ROE as Bond Yields Subside Steadily
Despite an initial setback triggered by the sudden outbreak of the Israel-Hamas war, the U.S. equity markets witnessed a steady uptrend over the past few trading sessions as bond yields subsided. As rising geopolitical tensions and volatility in oil prices forced investors to seek refuge in the less risky bond asset portfolio, bond prices surged while yields fell considerably, propelling the stocks higher.
The uptrend was further buoyed by a solid September jobs report that portrayed a better-than-expected 336,000 job addition. While the unemployment rate was 3.8%, average hourly earnings were up 0.2% for the month and 4.2% from a year ago compared with respective estimates of 0.3% and 4.3%. This partially negated the rate hike fears as the Federal Reserve kept the road ajar for another hike before the end of the year.
As investors employ a wait-and-see approach in a classic example of "backing and filling" in the market, they can benefit from "cash cow" stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. ON Semiconductor Corp., Dillard's, Inc., Valero Energy Corp., Upbound Group, Inc. and AGNC Investment Corp. are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 21 stocks that qualified the screening:
ON Semiconductor: Phoenix, AZ-based onsemi is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company has a very well-diversified business. onsemi generates a significant percentage of revenues from the computing, consumer, industrial, communications and automotive markets.
The stock has a long-term earnings growth expectation of 7.5% and delivered a trailing four-quarter earnings surprise of 8.7%, on average. onsemi carries a Zacks Rank #2.
Dillard's: Founded in 1938, Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. Its merchandise mix consists of both branded and private-label items. The company's strategy is to offer more fashion-forward and trendy products to attract customers.
Dillard's is benefiting from continued momentum in consumer demand and better inventory management. The company delivered a trailing four-quarter earnings surprise of 77.1%, on average. DDS carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Valero: San Antonio, TX-based Valero Energy is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3.1 million barrels per day across 15 refineries throughout the United States, Canada and the United Kingdom.
Valero carries a Zacks Rank #2. It has a long-term earnings growth expectation of 6% and delivered a trailing four-quarter earnings surprise of 9%, on average. It has a VGM Score of A.
Upbound Group: Headquartered in Plano, TX, Upbound Group (formerly Rent-A-Center, Inc.) is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. The company provides services to a large portion of consumers by providing them access and the opportunity to obtain ownership of high-quality, durable products under a flexible lease purchase agreement with no long-term debt obligation.
The company delivered a trailing four-quarter earnings surprise of 25.8%, on average. Upbound Group carries a Zacks Rank #2. It has a VGM Score of A.
AGNC Investment: Previously known as American Capital Agency Corp., AGNC Investment is a real estate investment trust (REIT) that focuses on leveraged investments in Agency residential mortgage-backed securities. This includes residential mortgage pass-through securities and collateralized mortgage obligations.
Atkore carries a Zacks Rank #2. It delivered a trailing four-quarter earnings surprise of 14.8%, on average.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2164172/buy-5-stocks-with-high-roe-as-bond-yields-subside-steadily
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
AGNC Investment Corp. (AGNC) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
Upbound Group, Inc. (UPBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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For Immediate Release Chicago, IL – October 12, 2023 – Stocks in this week’s article are ON Semiconductor Corp. ON, Dillard's, Inc. DDS, Valero Energy Corp. VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – October 12, 2023 – Stocks in this week’s article are ON Semiconductor Corp. ON, Dillard's, Inc. DDS, Valero Energy Corp. VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS carries a Zacks Rank #2.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – October 12, 2023 – Stocks in this week’s article are ON Semiconductor Corp. ON, Dillard's, Inc. DDS, Valero Energy Corp. VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC. DDS carries a Zacks Rank #2.
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For Immediate Release Chicago, IL – October 12, 2023 – Stocks in this week’s article are ON Semiconductor Corp. ON, Dillard's, Inc. DDS, Valero Energy Corp. VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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719124.0
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2023-10-11 00:00:00 UTC
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Buy 5 Stocks With High ROE as Bond Yields Subside Steadily
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https://www.nasdaq.com/articles/buy-5-stocks-with-high-roe-as-bond-yields-subside-steadily
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Despite an initial setback triggered by the sudden outbreak of the Israel-Hamas war, the U.S. equity markets witnessed a steady uptrend over the past few trading sessions as bond yields subsided. As rising geopolitical tensions and volatility in oil prices forced investors to seek refuge in the less risky bond asset portfolio, bond prices surged while yields fell considerably, propelling the stocks higher.
The uptrend was further buoyed by a solid September jobs report that portrayed a better-than-expected 336,000 job addition. While the unemployment rate was 3.8%, average hourly earnings were up 0.2% for the month and 4.2% from a year ago compared with respective estimates of 0.3% and 4.3%. This partially negated the rate hike fears as the Federal Reserve kept the road ajar for another hike before the end of the year.
As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Valero Energy Corporation VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders’ Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.
Screening Parameters
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow lesser than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of asset, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 21 stocks that qualified the screening:
ON Semiconductor: Phoenix, AZ-based onsemi is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company has a very well-diversified business. onsemi generates a significant percentage of revenues from the computing, consumer, industrial, communications and automotive markets.
The stock has a long-term earnings growth expectation of 7.5% and delivered a trailing four-quarter earnings surprise of 8.7%, on average. onsemi carries a Zacks Rank #2.
Dillard's: Founded in 1938, Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. Its merchandise mix consists of both branded and private-label items. The company’s strategy is to offer more fashion-forward and trendy products to attract customers.
Dillard’s is benefiting from continued momentum in consumer demand and better inventory management. The company delivered a trailing four-quarter earnings surprise of 77.1%, on average. DDS carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero: San Antonio, TX-based Valero Energy is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3.1 million barrels per day across 15 refineries throughout the United States, Canada and the United Kingdom.
Valero carries a Zacks Rank #2. It has a long-term earnings growth expectation of 6% and delivered a trailing four-quarter earnings surprise of 9%, on average. It has a VGM Score of A.
Upbound Group: Headquartered in Plano, TX, Upbound Group (formerly Rent-A-Center, Inc.) is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. The company provides services to a large portion of consumers by providing them access and the opportunity to obtain ownership of high-quality, durable products under a flexible lease purchase agreement with no long-term debt obligation.
The company delivered a trailing four-quarter earnings surprise of 25.8%, on average. Upbound Group carries a Zacks Rank #2. It has a VGM Score of A.
AGNC Investment: Previously known as American Capital Agency Corp., AGNC Investment is a real estate investment trust (REIT) that focuses on leveraged investments in Agency residential mortgage-backed securities. This includes residential mortgage pass-through securities and collateralized mortgage obligations.
Atkore carries a Zacks Rank #2. It delivered a trailing four-quarter earnings surprise of 14.8%, on average.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
AGNC Investment Corp. (AGNC) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
Upbound Group, Inc. (UPBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Valero Energy Corporation VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC are some of the stocks with high ROE to profit from. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Valero Energy Corporation VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC are some of the stocks with high ROE to profit from. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS carries a Zacks Rank #2.
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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Valero Energy Corporation VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC are some of the stocks with high ROE to profit from. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS carries a Zacks Rank #2.
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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Valero Energy Corporation VLO, Upbound Group, Inc. UPBD and AGNC Investment Corp. AGNC are some of the stocks with high ROE to profit from. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-10-09 00:00:00 UTC
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3 Must-Buy Efficient Stocks to Counter Market Uncertainty
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https://www.nasdaq.com/articles/3-must-buy-efficient-stocks-to-counter-market-uncertainty
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Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging a company’s potential to make profits. A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks. These efficiency ratios are:
These efficiency ratios are:
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Screening Criteria
In addition to the above-mentioned ratios, we have added a favorable Zacks Rank — Zacks Rank #1 (Strong Buy) — to the screen to make this strategy more profitable. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average
(Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.)
The use of these few criteria narrowed down the universe of over 7,906 stocks to 10.
Here are the top three stocks that made it through the screen:
Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. DDS has an average four-quarter positive earnings surprise of nearly 77.1%.
JAKKS Pacific JAKK is a multi-brand company that has been designing and marketing a broad range of toys and consumer products. JAKK has an average four-quarter positive earnings surprise of 53.2%.
Peabody Energy BTU is a coal company that serves metallurgical and thermal coal. BTU has an average four-quarter positive earnings surprise of 8.5%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Peabody Energy Corporation (BTU) : Free Stock Analysis Report
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Here are the top three stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. DDS has an average four-quarter positive earnings surprise of nearly 77.1%. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Peabody Energy Corporation (BTU) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Peabody Energy Corporation (BTU) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are the top three stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. DDS has an average four-quarter positive earnings surprise of nearly 77.1%.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Peabody Energy Corporation (BTU) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are the top three stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. DDS has an average four-quarter positive earnings surprise of nearly 77.1%.
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Here are the top three stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. DDS has an average four-quarter positive earnings surprise of nearly 77.1%. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Peabody Energy Corporation (BTU) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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719126.0
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2023-10-06 00:00:00 UTC
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Kohl's (KSS) Gears Up for Upcoming Holiday Shopping Season
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https://www.nasdaq.com/articles/kohls-kss-gears-up-for-upcoming-holiday-shopping-season
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Kohl's Corporation KSS is strengthening its presence as the busy holiday season approaches. Keeping along these lines, the leading omnichannel retailer is kicking off its holiday savings with the Deal Dash event. The company will host a three-day event starting Oct 9 across more than Kohl’s 1,100 stores and online on Kohls.com.
Shoppers can avail incredible deals at the event across categories like kitchen appliances, toys, decor and luggage, among others. Kohl's will offer great deals on well-known national brands as well as only-at-Kohl's brands and products.
With its Kohl’s Rewards loyalty program, registered members can avail of additional offers during the season. Rewards members also earn 5% Kohl’s Rewards on each purchase as well as personalized deals and perks all around the year. In addition, Kohl's Card shoppers can take another 15%, 20% and 30% off during the 3-Day Dash Deal.
Kohl’s is leaving no stone unturned to enhance consumers’ experience through easy and convenient methods for holiday shopping. Management is providing easy store pick-up options like self-pick up across its stores. Shoppers can take advantage of free shipping with no minimum purchase value on Kohls.com.
Image Source: Zacks Investment Research
What Else Should You Know?
The Zacks Rank #3 (Hold) company is progressing toward its 2023 key priorities, including improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet. Focusing on these priorities will likely keep working well for Kohl’s.
The company's solid partnership with Sephora to create a new era of elevated Beauty at Kohl's is noteworthy and generating impressive results. Kohl’s is also focused on growing its store portfolio and accelerating digital business growth. Apart from this, the company is committed to driving growth with its loyalty programs, including Kohl's Cash, Kohl's Rewards and private-label credit cards.
However, Kohl’s is battling product cost inflation, which is marring its margins. During the second quarter of fiscal 2023, Kohl's gross margin contracted 61 basis points (bps) year over year to 39%. Increased SG&A costs continue to hamper its performance. SG&A expenses rose 208 bps to 33.5%, as a percentage of total revenues. Management expects fiscal third-quarter SG&A expenses to increase nearly 3%.
That said, a wide range of product portfolio along with Kohl’s great deals and shopping conveniences makes it an unmatched destination to shop, in stores and online through the holiday season and beyond.
KSS’s stock has dropped 26.1% year-to-date compared with the industry’s 25.1% decline.
Some Solid Pick
Here, we have highlighted three top-ranked stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's current financial-year sales and earnings per share (EPS) suggests a decline of almost 1% and 17.7%, respectively, from the year-ago reported figures.
Ross Stores ROST, an off-price retailer, currently sports a Zacks Rank #1. ROST has a trailing four-quarter earnings surprise of 11.4% on average.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago reported figures.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, a multi-channel retailer of plush animals and related products, sports a Zacks Rank #1.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year sales and EPS suggests growth of 6.1% and 16.9%, respectively, from the year-ago reported figures.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-10-06 00:00:00 UTC
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Walmart (WMT) Offers Early Holiday Savings, Sam's Club Set Too
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https://www.nasdaq.com/articles/walmart-wmt-offers-early-holiday-savings-sams-club-set-too
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The most awaited time of the year is approaching, and retailers are going all the way to make the most of it yet another time. Companies are gearing up for the holiday season, which constitutes a significant portion of annual sales. One such retailer is the supermarket giant, Walmart Inc. WMT, which is set to maximize its business during the festive season and capture the attention of early-bird shoppers.
Walmart Deals – Holiday Kickoff Event
The omnichannel retailer unveiled its Walmart Deals – Holiday Kickoff savings event, which will enable customers to save big and early this time around. The event will start at noon on Oct 9 and go on till Oct 12, wherein shoppers can avail of abundant deals on holiday gifts, ranging from fashion, electronics, toys and home, among others.
During the Walmart Deals – Holiday Kickoff savings event, the company’s customers can shop on walmart.com. In this regard, this leading retailer is undertaking several efforts to ensure customers have a seamless shopping experience as they shop during the savings event online.
WMT offers many fast and convenient pickup and delivery options for customers during the savings event as well as the entire holiday season. These include curbside pickup, same-day delivery, two-day shipping and late-night Express, as part of which Walmart is providing Express Delivery service till 10 p.m. (on orders made by 9:30 p.m.).
Image Source: Zacks Investment Research
It’s Raining Deals at Sam’s Club Too
Walmart’s Sam’s Club division is also prepping for the crucial holiday season. This membership warehouse club is coming up with two online savings events, which include early shopping hours on offers for its Plus members. Sam’s Club is introducing a series of discounts throughout the month, kicking off with an attractive membership promotion from Oct 5 to Oct 15.
Sam’s Club Plus members enjoy several perks, including free shipping on most items, complimentary curbside pickup, 2% back in Sam’s Cash on eligible purchases (up to $500/year), and access to free select generic prescriptions. As part of its new savings events, Sam’s Club is providing online early access to both existing and new Plus members, granting them the privilege to shop online two hours before the start of each day during the Flash Savings Event. Additionally, they will have a two-hour online head start on the first day of the Super Savings Event.
Sam’s Club will host its online Flash Savings Event from Oct 6 to 9, providing members with access to daily deals on various items such as housewares, toys, tech gadgets, beauty products and more. Sam’s Club will launch its online Super Savings Event from Oct 10 to 12, including savings of more than $11,000 on more than 100 premium brands.
Winding Up
Due to its hands-on strategies and compelling deals, Walmart is set to have an eventful and joyous October this year. Also, this Zacks Rank #2 (Buy) company remains well-placed for the overall holiday season. Talking of which, it is expected that U.S. retail sales, excluding automotive sales, will witness a 3.7% year-over-year increase during the conventional holiday season spanning from Nov 1 to Dec 24 based on data from Mastercard SpendingPulse.
Shares of WMT have rallied 25.6% in the past year, outperforming the industry’s growth of 24.6%.
3 Other Bets Worth a Look
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 11.2% and 4.9%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 14.3%, on average.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $6.66 to $7.04 in the past 60 days.
Ross Stores ROST, which operates off-price retail apparel and home fashion stores, currently sports a Zacks Rank #1. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and earnings indicates growth of 7.1% and 19.4%, respectively, from the year-ago reported numbers.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1. DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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99b598fd-61df-412f-89d5-2587c790d28c
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719128.0
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2023-10-04 00:00:00 UTC
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Macy's (M) Expands Small-Format Store Strategy With New Stores
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https://www.nasdaq.com/articles/macys-m-expands-small-format-store-strategy-with-new-stores
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Macy's, Inc. M recently announced the expansion of its small-format store strategy as it constantly aims to cater to customers looking for more convenient locations.
The company plans to add up to an additional 30 small-format stores across the United States through fall 2025, bringing the overall count of such stores to 42. This move will enable Macy's to boost its store portfolio with the combination of best on-and off-mall locations, allowing it to deliver sustainable long-term sales growth.
M’s small-format stores are designed to offer a best-in-class shopping experience in an open environment, which is about one-fifth the size of its full-line stores. Although the company did not disclose the locations, additional stores will start opening next year. These smaller stores will likely be opened at high-traffic shopping locations and will feature a mix of Macy's’ private brands and other popular market brands. The new stores will also complement about 15 small-format stores currently operational under the Macy's and Bloomie's banners.
The company’s small-format stores have been an integral part of its omnichannel ecosystem and growth initiative, which focuses on expanding its footprint in existing markets, entering new markets and replacing unproductive stores. The company strategically locates its small-format stores in off-mall shopping centers to reach out to a greater number of customers and boost frequent visits. Year-to-date, the company’s small-format stores, which have been open for more than a fiscal year, have generated comparable sales growth on an owned-plus-licensed basis.
In addition, Bloomingdale's, with its smaller store concept named Bloomie's, is also on track to open its first West Coast location in Seattle, WA, in November. This will be Bloomie's third location, complementing its other stores based in Fairfax, Virginia and the Chicagoland area.
What’s More?
Macy’s is on track to strengthen its omni-channel capabilities with investments in online shopping experiences, data and analytics, technology infrastructure, as well as better fulfillment capabilities. Incidentally, Macy’s expanded omni-channel offerings, such as curbside, store pickup and same-day delivery, bode well. However, of late, M has been grappling with a tough macroeconomic backdrop, waning consumer confidence and a pullback in spending activity.
Image Source: Zacks Investment Research
The Zacks Rank #4 (Sell) company’s shares have declined 30.2% in the past three months compared with the industry’s decline of 16.5%.
Three Solid Picks
A few better-ranked stocks from the same space are Dillard's, Inc. DDS, Abercrombie & Fitch Co. ANF and American Eagle Outfitters, Inc. AEO.
Dillard's, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter earnings surprise of 77.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's fiscal 2024 sales indicates growth of 0.3% from the year-ago period’s reported figure.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently flaunts a Zacks Rank #1. ANF delivered a significant earnings surprise in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales implies growth of 10.4% from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 724.8%.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 33% and 2.2% from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 43.2%.
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Macy's, Inc. (M) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Three Solid Picks A few better-ranked stocks from the same space are Dillard's, Inc. DDS, Abercrombie & Fitch Co. ANF and American Eagle Outfitters, Inc. AEO. DDS has a trailing four-quarter earnings surprise of 77.1%, on average. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Three Solid Picks A few better-ranked stocks from the same space are Dillard's, Inc. DDS, Abercrombie & Fitch Co. ANF and American Eagle Outfitters, Inc. AEO. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Three Solid Picks A few better-ranked stocks from the same space are Dillard's, Inc. DDS, Abercrombie & Fitch Co. ANF and American Eagle Outfitters, Inc. AEO. DDS has a trailing four-quarter earnings surprise of 77.1%, on average.
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Three Solid Picks A few better-ranked stocks from the same space are Dillard's, Inc. DDS, Abercrombie & Fitch Co. ANF and American Eagle Outfitters, Inc. AEO. DDS has a trailing four-quarter earnings surprise of 77.1%, on average. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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c7a5a833-0cf6-438d-85ab-40428e1afe8f
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719129.0
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2023-10-04 00:00:00 UTC
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3 Long-Term Stocks Ready to Take Off Soon
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https://www.nasdaq.com/articles/3-long-term-stocks-ready-to-take-off-soon
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors shouldn’t be scared out of this market. On the contrary, they should be looking for buying opportunities as stock prices trend lower. This is especially true for buy-and-hold investors who are in it for the long term. And there are lots of great stocks available right now at decent prices. Many stocks are downright cheap. This has led to investors looking for long-term stocks.
Investors looking to take positions in well-managed companies that have a history of rewarding their stockholders can find plenty of opportunities in the current market. There are also beaten-down names that have new catalysts working in their favor and the potential to turn their operations and share price performance around for the better. The key is to look for opportunities, buy with conviction, and hold for the long term.
Dillard’s (DDS)
Source: ESB Professional / Shutterstock.com
For all its success, you’d think that the upscale American department store chain Dillard’s (NYSE:DDS) would get more attention. Sadly, no. But the company that continues to be run by the same Dillard family that founded it back in 1938 during the Great Depression has a remarkable track record.
While DDS stock is flat this year, it has gained 325% over the last five years, outpacing many technology stocks over the same period of time.
Dillard’s has achieved success mainly through careful family stewardship that emphasizes slow and steady growth and places a premium on two-way loyalty between management and employees. With fewer than 300 stores in 29 states, Dillard’s is no Walmart (NYSE:WMT). However, the company’s measured approach and focus on providing customers with a positive shopping experience has led to success. DDS stock looks affordable right now trading at only six times future earnings. It also pays a quarterly dividend of 25 cents per share.
Alcoa (AA)
Source: shutterstock.com/MOLPIX
Aluminum giant Alcoa (NYSE:AA) has struggled mightily in recent years. AA stock is down 34% this year, including a 25% decline over the last 12 months. However, hope arrives at the beaten-down company in the form of a new chief executive officer (CEO). The Pittsburgh-based company just announced that William Oplinger has succeeded Roy Harvey as CEO. Alcoa added that Harvey will remain on as a strategic adviser until the end of this year to help with the transition.
Oplinger had previously served as Alcoa’s chief operations officer and knows the company intimately. The previous CEO, Roy Harvey, had been at Alcoa’s helm since November 2016, which is when the aluminum maker went public. Alcoa didn’t discuss the CEO change, saying only in a written statement that the executive shake-up is part of its “succession planning process.” However, the leadership change comes ahead of Alcoa reporting its Q3 financial results in mid-October.
While it might take some time, a new CEO could help to get AA stock moving back in the right direction after a long period of underperformance. Alcoa’s stock also pays a quarterly dividend of 10 cents a share.
Costco (COST)
Source: Shutterstock
Big box retailer Costco (NASDAQ:COST) continues to thrive and just reported strong financial results that beat Wall Street expectations on both the top and bottom lines. The company is benefitting from strong grocery sales even as consumers cut back on discretionary and big-ticket items such as furniture and electronics at its stores. Drawn by more affordable groceries, traffic at Costco stores worldwide rose 5.2% and gained 5% within the U.S. on a year-over-year basis during the company’s most recent quarter.
Investors and analysts continue to hold out hope for two developments at Costco, both of which could transpire in Q4 of this year. The first is a long-awaited membership fee hike. The last time Costco raised its membership fees was in 2017. Analysts say it is only a matter of time before the company acquiesces and lifts it membership tiers. The second event is a special dividend payment. The last such payment to stockholders occurred during the pandemic. A strong finish to the year could provide management with the impetus to reward shareholders.
COST stock is up 25% this year and has increased 158% over the last five years.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 3 Long-Term Stocks Ready to Take Off Soon appeared first on InvestorPlace.
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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Dillard’s (DDS) Source: ESB Professional / Shutterstock.com For all its success, you’d think that the upscale American department store chain Dillard’s (NYSE:DDS) would get more attention. While DDS stock is flat this year, it has gained 325% over the last five years, outpacing many technology stocks over the same period of time. DDS stock looks affordable right now trading at only six times future earnings.
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Dillard’s (DDS) Source: ESB Professional / Shutterstock.com For all its success, you’d think that the upscale American department store chain Dillard’s (NYSE:DDS) would get more attention. While DDS stock is flat this year, it has gained 325% over the last five years, outpacing many technology stocks over the same period of time. DDS stock looks affordable right now trading at only six times future earnings.
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While DDS stock is flat this year, it has gained 325% over the last five years, outpacing many technology stocks over the same period of time. Dillard’s (DDS) Source: ESB Professional / Shutterstock.com For all its success, you’d think that the upscale American department store chain Dillard’s (NYSE:DDS) would get more attention. DDS stock looks affordable right now trading at only six times future earnings.
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Dillard’s (DDS) Source: ESB Professional / Shutterstock.com For all its success, you’d think that the upscale American department store chain Dillard’s (NYSE:DDS) would get more attention. While DDS stock is flat this year, it has gained 325% over the last five years, outpacing many technology stocks over the same period of time. DDS stock looks affordable right now trading at only six times future earnings.
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dfe02f15-7182-4560-9546-96ae986cee1a
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719130.0
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2023-09-26 00:00:00 UTC
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Ex-Dividend Reminder: Keurig Dr Pepper, Dillard's and Willis Towers Watson Public
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-keurig-dr-pepper-dillards-and-willis-towers-watson-public-0
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Looking at the universe of stocks we cover at Dividend Channel, on 9/28/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Keurig Dr Pepper Inc will pay its quarterly dividend of $0.215 on 10/13/23, Dillard's Inc. will pay its quarterly dividend of $0.25 on 10/30/23, and Willis Towers Watson Public Ltd Co will pay its quarterly dividend of $0.84 on 10/16/23. As a percentage of KDP's recent stock price of $32.42, this dividend works out to approximately 0.66%, so look for shares of Keurig Dr Pepper Inc to trade 0.66% lower — all else being equal — when KDP shares open for trading on 9/28/23. Similarly, investors should look for DDS to open 0.08% lower in price and for WTW to open 0.39% lower, all else being equal.
Below are dividend history charts for KDP, DDS, and WTW, showing historical dividends prior to the most recent ones declared.
Keurig Dr Pepper Inc (Symbol: KDP):
Dillard's Inc. (Symbol: DDS):
Willis Towers Watson Public Ltd Co (Symbol: WTW):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.65% for Keurig Dr Pepper Inc, 0.32% for Dillard's Inc., and 1.58% for Willis Towers Watson Public Ltd Co.
In Tuesday trading, Keurig Dr Pepper Inc shares are currently down about 0.2%, Dillard's Inc. shares are down about 0.5%, and Willis Towers Watson Public Ltd Co shares are down about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Dividend History
NBIX Average Annual Return
Top Ten Hedge Funds Holding KNSW
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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Looking at the universe of stocks we cover at Dividend Channel, on 9/28/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.08% lower in price and for WTW to open 0.39% lower, all else being equal. Below are dividend history charts for KDP, DDS, and WTW, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 9/28/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Keurig Dr Pepper Inc (Symbol: KDP): Dillard's Inc. (Symbol: DDS): Willis Towers Watson Public Ltd Co (Symbol: WTW): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DDS to open 0.08% lower in price and for WTW to open 0.39% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 9/28/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Keurig Dr Pepper Inc (Symbol: KDP): Dillard's Inc. (Symbol: DDS): Willis Towers Watson Public Ltd Co (Symbol: WTW): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DDS to open 0.08% lower in price and for WTW to open 0.39% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 9/28/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.08% lower in price and for WTW to open 0.39% lower, all else being equal. Below are dividend history charts for KDP, DDS, and WTW, showing historical dividends prior to the most recent ones declared.
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26b7ebdb-8054-4507-8bfc-6b884d4112da
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719131.0
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2023-09-26 00:00:00 UTC
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Ulta Beauty's (ULTA) Omnichannel Strength Aids, SG&A Costs Hurt
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https://www.nasdaq.com/articles/ulta-beautys-ulta-omnichannel-strength-aids-sga-costs-hurt
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Ulta Beauty, Inc. ULTA has been benefiting from its robust omnichannel efforts and strength in all major categories, especially skincare. The company has created a robust niche in the beauty space due to its focus on key priorities.
These upsides have been working well for this Zacks Rank #3 (Hold) company amid high SG&A costs. Encouragingly, management raised its guidance for fiscal 2023 on its second-quarter earnings call. The Zacks Consensus Estimate for fiscal 2023 earnings per share (EPS) has risen 0.9% to $25.38 in the past 30 days.
Core Priorities Aid
The company’s foremost priority is to strengthen its omnichannel business and explore the potential of both physical and digital facets. ULTA has been undertaking various tools to enhance the experience of guests, like offering a virtual try-on tool and in-store education and reimagining fixtures, among others.
Thirdly, the company concentrates on offering customers a curated and exclusive range of beauty products through innovation. Moving on, Ulta Beauty is focused on deepening customer engagement by boosting rewards and loyalty programs. Fifthly, management is committed to optimizing its cost structure. Apart from these, the company strives to boost organizational talent and strengthen culture.
Image Source: Zacks Investment Research
Omnichannel, a Key Driver
Ulta Beauty is known for its strategy of striking the right balance between online and physical stores. The company’s buy online, pickup in store has been gaining traction for a while. Ulta Beauty has expanded the same-day delivery feature to all its stores, alongside enhancing its store fulfillment process to boost efficiency.
In fiscal 2022, the company launched its new alliance with Target and has 421 Ulta Beauty at Target shop-in-shop locations (as of the end of the second quarter of fiscal 2023). Also, ULTA is benefiting from its Wellness Shop launch (in the fourth quarter of fiscal 2021), which is a cross-category platform providing guests with self-care for the mind, body and spirit across several stores and online.
The company’s initiatives to boost online promotions and customer engagement have also been supporting online sales growth. With consumers growing enthusiasm toward online sales, management remains on track with expanding capacity at fulfillment centers, the expansion of ship-from-store capabilities and curbside pickups.
Ulta Beauty is also benefiting from its mobile app and virtual try-on capabilities. That said, the majority of customers continue to transact only from the company’s stores. In the second quarter, Ulta Beauty introduced three new stores, remodeled three and relocated two. For fiscal 2023, management expects 25-30 net new stores, along with 20-30 store remodeling and relocation projects.
Skincare Stands Out
Ulta Beauty has been seeing market share gains in major beauty categories for a while now, with skincare standing out. The trend continued in the second quarter of fiscal 2023, wherein skincare was the company’s best-performing category.
The company saw double-digit growth in both mass and prestige. Results gained from newness in brands like Drunk Elephant, The Ordinary and Supergoop!, along with new brands like Bubble, Beautycounter and BYOMA. Guests’ increased focus on self-care and maintaining healthy skincare routines, along with the company’s focus on innovation, works well for the skincare category.
SG&A Costs to Remain High?
Ulta Beauty’s SG&A expenses have been rising year over year for a while now. In the second quarter of fiscal 2023, SG&A expenses rose 12.4% to $600.7 million. As a percentage of net sales, SG&A expenses came in at 23.7%, up from 23.3% reported in the year-ago quarter. The year-over-year increase in SG&A expenses was due to the deleverage of store payroll and benefits, increased store expenses and corporate overheads related to strategic investments. The operating margin decreased from 17% to 15.5% in the second quarter.
Management expects an operating margin between 14.6% and 14.8%, which includes expectations of nearly even deleverage from the gross margin and SG&A. Management expects the operating margin to be under more pressure in the third quarter than the second quarter as it laps pricing gains (compared with the year-ago period) and due to an investment spending shift from the second quarter to the third quarter. Consequently, the third-quarter EPS is likely to decline year over year.
What’s Ahead?
Ulta Beauty’s strong business model, diverse assortment and solid loyalty program helped drive splendid results and encouraged management to raise its fiscal 2023 view. Management now expects fiscal 2023 net sales in the range of $11.05-$11.15 billion compared with the $11-$11.1 billion band expected earlier. Comparable sales are expected to rise 4.5%-5.5%, up from 4-5% growth expected earlier. The company expects comps growth to moderate-to-low-single-digit growth in the second half of the year.
For fiscal 2023, earnings are envisioned in the band of $25.10-$25.60 per share, suggesting a rise from the $24.01 per share reported in fiscal 2022. Management earlier projected the bottom line in the range of $24.70-$25.40 per share.
Shares of Ulta Beauty have risen 1.1% in the past year against an equal decline of the industry.
Robust Retail Bets
Here, we have highlighted three better-ranked retail stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $6.66 to $7.04 in the past 30 days.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, which is a multi-channel retailer of plush animals and related products, sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year EPS suggests growth of 14.3% from the year-ago reported figure.
Ross Stores ROST, an off-price retailer, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Ross Stores’ current financial-year EPS suggests growth of 19.4% from the year-ago reported figure. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4751aa9f-4cad-467c-96cf-d82d877dfd22
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719132.0
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2023-09-25 00:00:00 UTC
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Bet on 5 Stocks With High ROE as Markets Skid on Uncertainty
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https://www.nasdaq.com/articles/bet-on-5-stocks-with-high-roe-as-markets-skid-on-uncertainty
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The U.S. equity markets have witnessed a steady downtrend over the past few trading days while bond yields surged to historic highs as the pendulum gradually shifted to the less risky asset portfolio. The latest catalyst to the turn of events was the Federal Reserve’s stance to keep interest rates steady while keeping the road ajar for another hike before the end of the year. Moreover, indications of fewer cuts next year and ‘a higher-for-longer approach to interest rates’ have probably hastened the slide.
With relatively high inflation, consumers are hard hit by lower real wage levels and higher rates that have been raised 11 times in the past year and a half to a target range of 5.25% to 5.5% – the highest in more than 22 years. This apparently compounded investors’ fears related to market uncertainty and triggered a decline. Concerns regarding a probable government shutdown seemed to add to the woes as the federal lawmakers failed to reach a likely consensus to pass the government funding plans.
As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Ryder System, Inc. R, Upbound Group, Inc. UPBD and Atkore Inc. ATKR are some of the stocks with high ROE to profit from.
Why ROE?
ROE = Net Income/Shareholders’ Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.
Parameters Used for Screening
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow lesser than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of asset, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 19 stocks that qualified the screening:
ON Semiconductor: Phoenix, AZ-based onsemi is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company has a very well-diversified business. onsemi generates a significant percentage of revenues from the computing, consumer, industrial, communications and automotive markets.
The stock has a long-term earnings growth expectation of 7.5% and delivered a trailing four-quarter earnings surprise of 8.7%, on average. onsemi carries a Zacks Rank #2.
Dillard's: Founded in 1938, Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. Its merchandise mix consists of both branded and private-label items. The company’s strategy is to offer more fashion-forward and trendy products to attract customers.
Dillard’s is benefiting from continued momentum in consumer demand and better inventory management. The company delivered a trailing four-quarter earnings surprise of 77.1%, on average. DDS sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ryder: Florida-based Ryder is recognized as one of the world's largest providers of integrated logistics and transportation solutions. Ryder’s customers range from small businesses to large international enterprises. They are drawn from a wide variety of industries, the most significant of which are automotive, electronics, transportation, grocery, lumber and wood products, food service and home furnishing.
Ryder sports a Zacks Rank #1. It delivered a trailing four-quarter earnings surprise of 11.2%, on average. It has a VGM Score of B.
Upbound Group: Headquartered in Plano, TX, Upbound Group (formerly Rent-A-Center, Inc.) is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. The company provides services to a large portion of consumers by providing them access and the opportunity to obtain ownership of high-quality, durable products under a flexible lease purchase agreement with no long-term debt obligation.
The company delivered a trailing four-quarter earnings surprise of 25.8%, on average. Upbound Group sports a Zacks Rank #1.
Atkore: Headquartered in Harvey, IL, Atkore offers conduits, cables and installation accessories in the United States and internationally. With a network of manufacturing and distribution facilities worldwide, Atkore is a leading provider of electrical, safety and infrastructure solutions.
Atkore carries a Zacks Rank #2. It delivered a trailing four-quarter earnings surprise of 22.3%, on average. It has a VGM Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ryder System, Inc. (R) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
Atkore Inc. (ATKR) : Free Stock Analysis Report
Upbound Group, Inc. (UPBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Ryder System, Inc. R, Upbound Group, Inc. UPBD and Atkore Inc. ATKR are some of the stocks with high ROE to profit from. DDS sports a Zacks Rank #1. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ryder System, Inc. (R) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Ryder System, Inc. R, Upbound Group, Inc. UPBD and Atkore Inc. ATKR are some of the stocks with high ROE to profit from. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ryder System, Inc. (R) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS sports a Zacks Rank #1.
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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Ryder System, Inc. R, Upbound Group, Inc. UPBD and Atkore Inc. ATKR are some of the stocks with high ROE to profit from. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ryder System, Inc. (R) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here. DDS sports a Zacks Rank #1.
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ON Semiconductor Corporation ON, Dillard's, Inc. DDS, Ryder System, Inc. R, Upbound Group, Inc. UPBD and Atkore Inc. ATKR are some of the stocks with high ROE to profit from. DDS sports a Zacks Rank #1. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ryder System, Inc. (R) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Upbound Group, Inc. (UPBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4c09f667-a29a-4687-bbf9-7ca0af6ab5cb
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719133.0
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2023-09-19 00:00:00 UTC
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Kohl's (KSS) Strategic Partnership Aids Growth, High Costs Stay
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https://www.nasdaq.com/articles/kohls-kss-strategic-partnership-aids-growth-high-costs-stay
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Kohl’s Corporation KSS is on track with prudent partnerships to fuel growth. The specialty department stores retailer is benefiting from strength in omni-channel capabilities. Focus on strategic efforts like enhancing customer experience is yielding. However, Kohl’s is not immune to an inflationary landscape.
Let’s delve deeper.
Strength in Partnership
The Zacks Rank #3 (Hold) company’s solid partnership with Sephora to create a new era of elevated Beauty at Kohl's is noteworthy and generating impressive results. In its lastearnings call management highlighted that Sephora Kohl's continues to exceed its expectations, fueling a total beauty sales rise of approximately 90%. The company opened nearly 200 Sephora shops during the second quarter of fiscal 2023. Sephora will be featured in over 900 stores by the end of 2023. The company will expand the small format Sephora shops over the next couple of years.
Image Source: Zacks Investment Research
Omni-Channel Capabilities Drive Growth
Kohl’s is focused on growing its store portfolio besides accelerating digital business growth. Management is on track to open seven new stores, including one relocation, during 2023. Given the need of the hour, the company has also been speeding up its digital marketing and enhancing its website to cater to customers’ needs.
The company’s solid endeavors to boost mobile traffic have augmented the adoption of the Kohl app, making it a vital constituent of online sales. Kohl’s has been expanding its e-commerce fulfillment centers and strengthening in-store pickups to improve online offerings.
Growth Efforts on Track
Kohl’s is progressing toward its 2023 key priorities, including improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet. Management is focused on driving growth in gifting, Sephora, impulse, home decor and longer-term new stores to enhance customer experience. The company has various opportunities to drive its core apparel and footwear offerings.
KSS is committed to driving growth with its loyalty programs, including Kohl's Cash, Kohl's Rewards and private-label credit cards. In the second quarter of fiscal 2023, management launched a co-brand credit card with Capital One to a few customers. Kohl's is on track with managing costs, focusing on lowering the marketing spend ratio and bringing more extraordinary technology into its operations to enhance productivity.
Cost Woes
In the fiscal second quarter, Kohl's gross margin contracted 61 basis points (bps) year over year to 39%. The downside can be attributed to product cost inflation and increased shrinkage. The company’s SG&A expenses escalated by 1.6% to $1,304 million. The rise in such costs was mainly due to wage pressure, increased store expenses on Sephora openings and store experience investments. Management expects fiscal third-quarter SG&A expenses to increase nearly 3% year over year due to additional store-related investments and 45 Sephora small shop openings. Nevertheless, focus on growth initiatives is likely to offer respite.
KSS’s stock has decreased 6% in the past six months compared with the industry’s decline of 17.4%.
Some Solid Picks
Here, we have highlighted three top-ranked stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $7.00 to $7.04 in the past 30 days.
Ross Stores ROST, an off-price retailer, currently carries a Zacks Rank #2 (Buy). ROST has a trailing four-quarter earnings surprise of 11.4% on average.
The Zacks Consensus Estimate for Ross Stores’ current financial-year EPS suggests growth of 19.4% from the year-ago reported figure.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, a multi-channel retailer of plush animals and related products, currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year EPS suggests growth of 15.9% from the year-ago reported figure.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4cba88b1-dd9c-4816-bb46-a5a9f782dcc8
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719134.0
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2023-09-14 00:00:00 UTC
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Walmart's (WMT) Walmart GoLocal Teams Up With SmartKargo
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https://www.nasdaq.com/articles/walmarts-wmt-walmart-golocal-teams-up-with-smartkargo
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Walmart Inc. WMT is known for its robust omnichannel operations, which include its impressive delivery services. In the latest development, SmartKargo revealed its collaboration with Walmart GoLocal to enhance the range of next-and-two-day delivery services available to retailers and e-commerce businesses.
While SmartKargo is a prominent player in delivering technology and logistics solutions to airlines on a global scale, Walmart GoLocal is a white-label, delivery-as-a-service platform by Walmart. The integration of SmartKargo's software-as-a-service solution with Walmart GoLocal is likely to help retailers offer improved delivery of small packages.
With this partnership, SmartKargo will benefit from Walmart GoLocal’s local delivery solutions and retail and logistics proficiency. Also, the move will help Walmart GoLocal as it will speed up the process of retailers and e-commerce companies transferring the inventory from their fulfillment centers to customers’ doors, alongside facilitating steadfast next and two-day delivery.
Image Source: Zacks Investment Research
What Else to Know?
Walmart has made significant strides in strengthening its delivery capabilities, as evidenced by various strategic moves. These include partnering with Salesforce, expanding its InHome delivery service, investing in DroneUp, launching the Walmart+ membership program and conducting a pilot program with Cruise to explore grocery delivery using self-driving electric vehicles.
Prior to these initiatives, Walmart introduced Express Delivery in April 2021 and formed partnerships with Point Pickup, Skipcart, AxleHire and Roadie in January 2019. Additionally, the acquisition of Parcel in September 2017 was a key strategic move to enhance its delivery services. Additionally, WMT offers store and curbside pickup options.
As of the second quarter of fiscal 2024, Walmart U.S. had nearly 4,600 pickup locations and more than 4,000 same-day delivery stores. As of Jan 31, 2023, the company had more than 8,100 pickups and nearly 7,000 delivery locations globally.
A strong delivery arm has been boosting the supermarket giant’s e-commerce business. In the second quarter, e-commerce net sales accounted for 15% of the company's total net sales. WMT has been actively pursuing numerous e-commerce initiatives, which encompass acquisitions, partnerships and enhancements to delivery and payment systems.
Walmart is also making innovations in its supply chain and increasing capacity. Other than Walmart GoLocal, the company is establishing new ventures such as Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace and Walmart Fulfillment Services. In the second quarter of fiscal 2024, global e-commerce sales saw an impressive 24% increase, driven by the strength of its omnichannel capabilities, including pickup and delivery services.
Shares of this Zacks Rank #2 (Buy) company have risen 4.7% in the past three months compared with the industry’s growth of 4.2%.
Other Solid Picks
Here, we have highlighted three other top-ranked stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $6.66 to $7.04 in the past 30 days.
Ross Stores ROST currently carries a Zacks Rank #2. This off-price retailer has an expected EPS growth rate of 11.6% for three to five years.
The Zacks Consensus Estimate for Ross Stores’ current financial-year EPS suggests growth of 19.4% from the year-ago reported figure. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, which is a multi-channel retailer of plush animals and related products, holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year EPS suggests growth of 14.3% from the year-ago reported figure.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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719135.0
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2023-09-13 00:00:00 UTC
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Dillard's (DDS) Stock Rallies 11% in a Year: What's Ahead?
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https://www.nasdaq.com/articles/dillards-dds-stock-rallies-11-in-a-year%3A-whats-ahead
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Dillard’s, Inc. DDS has been in investor good books, driven by its sound fundamentals and impressive growth efforts. Continued consumer demand and focus on inventory and expense management bode well. The company’s strategy to offer more fashion-forward and trendy products in order to attract customers has been a key driver.
DDS boasts a robust surprise trend, which continued in second-quarter fiscal 2023. The company’s sales and earnings beat the Zacks Consensus Estimate for the 10th straight quarter in the fiscal second quarter. Results gained from better inventory management and consumer demand. The company witnessed robust sales in cosmetics, and home and furniture categories. However, sales were affected by the continued cautiousness of consumers in the first few weeks of the fiscal second quarter.
Backed by the robust surprise trend, the Zacks Rank #1 (Strong Buy) stock has outperformed the industry and the Retail - Wholesale sector in the past year. DDS has rallied 11.5% against the industry’s decline of 12.8%. The stock also compares favorably with the sector’s growth of 8% in the same period.
Image Source: Zacks Investment Research
Dillard's is likely to retain its sales momentum on efforts to capture growth opportunities in brick-and-mortar stores and e-commerce business. On the store front, the company is gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Its activewear brands have been gaining market share.
Moreover, DDS’ e-commerce business is catching pace with strategies like the enhancement of merchandise assortments and effective inventory management. We expect the company to gain from its focus on increasing productivity at existing stores, developing a leading omni-channel platform and enhancing domestic operations in the years ahead.
Additionally, Dillard’s has been delivering improved inventory levels in recent quarters, driven by its ongoing inventory management initiatives. The company exited second-quarter fiscal 2023 with flat year-over-year inventory levels. This resulted in a strong retail gross margin of 40.4%, even though it declined year over year. Merchandise inventory as of Jul 29, 2023, was $1,192.7 million compared with $1,193.4 million in the year-ago quarter.
Dillard's is focused on maintaining a strong balance sheet and liquidity. Some highlights of its financial status include smaller rent obligations compared with the industry. This is because the company owns 90% of its retail stores, and 100% of its corporate headquarters, distribution and fulfillment facilities.
As of Jul 29, 2023, the company's long-term debt and finance lease liabilities (including subordinate debentures) remained flat at $521.4 million sequentially. The company’s debt-to-capitalization ratio is stable at 0.24 on a sequential basis. Also, the times interest earned ratio stands at 96.3, reflecting an improvement from 53.3 in the prior quarter.
3 Stocks Looking Red Hot
Here we have highlighted three better-ranked stocks, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and Urban Outfitters URBN.
Abercrombie, a specialty retailer of premium, high-quality casual apparel for men, women, and kids, currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 724.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales suggests growth of 10.4%, from the year-ago reported number. The consensus mark for EPS is pegged at $4.36, suggesting significant growth of 1,644% from the year-ago quarter’s EPS of 25 cents.
American Eagle, which operates as a specialty retailer of casual apparel, accessories and footwear for men and women, currently flaunts a Zacks Rank #1. The expected EPS growth rate for three to five years is 15.3%.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings indicates growth of 1.3% and 24.7%, respectively, from the year-ago reported numbers. AEO has a trailing four-quarter earnings surprise of 4.7%, on average.
Urban Outfitters, a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts products, currently sports a Zacks Rank #1. The expected EPS growth rate for three to five years is 23.8%.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings implies growth of 9% and 84.6%, respectively, from the year-ago reported numbers. URBN has a trailing four-quarter earnings surprise of 19.2%, on average.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard’s, Inc. DDS has been in investor good books, driven by its sound fundamentals and impressive growth efforts. DDS boasts a robust surprise trend, which continued in second-quarter fiscal 2023. DDS has rallied 11.5% against the industry’s decline of 12.8%.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS has been in investor good books, driven by its sound fundamentals and impressive growth efforts. DDS boasts a robust surprise trend, which continued in second-quarter fiscal 2023.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS has been in investor good books, driven by its sound fundamentals and impressive growth efforts. DDS boasts a robust surprise trend, which continued in second-quarter fiscal 2023.
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DDS boasts a robust surprise trend, which continued in second-quarter fiscal 2023. Dillard’s, Inc. DDS has been in investor good books, driven by its sound fundamentals and impressive growth efforts. DDS has rallied 11.5% against the industry’s decline of 12.8%.
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2023-09-10 00:00:00 UTC
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The 7 Best Retail Stocks to Buy Now: September 2023
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https://www.nasdaq.com/articles/the-7-best-retail-stocks-to-buy-now%3A-september-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As concerns about a slowdown in consumer spending rise, you may think now is not the right time to invest in the best retail stocks. However, with shares in retailers already hit hard by this uncertainty, many stocks in this sector have fallen to heavily-discounted valuations. For instance, there are many retailer stocks trading at single-digit price-to-earnings (or P/E) ratios right now. While some of them are set to experience a big dropoff in earnings, most of them can be better described as deep value rather than potential “value traps.”
Better yet, despite the fear, uncertainty, and doubt (or FUD) surrounding the macro picture, recent inflation and jobless claims data may suggest an increasing chance of a much-hoped “soft landing” for the U.S. economy playing out. This could pave the way for retailers to report much stronger earnings than currently anticipated. The resultant pleasant surprise in turn would likely mean outsized moves higher for names in the retailing space. With this in mind, some of all of these seven best retail stocks may make for great contrarian buys right now. A mix of large, small, and under-the-radar names, each one currently trades at a low valuation.
Best Retail Stocks: Build-A-Bear Workshop (BBW)
Source: QualityHD/Shutterstock.com
In recent years, Build-a-Bear Workshop (NYSE:BBW) has been on a tear. With the specialty retailer’s revenue and earnings making an epic comeback post-pandemic, rising above pre-Covid levels, its shares as a result have experienced a more than ten-fold increase in price since mid-2020. But even as some have remained skeptical that this strong performance will continue, so far the company has continued to crush it. Last quarter, the company reported record revenue and earnings, and provided promising full-year guidance.
The sell-side is also confident that the company will stay in growth mode. Forecasts call for earnings per share (or EPS) to rise 7.9% next fiscal year (ending January 2025). If a “soft landing happens,” and/or Build-a-Bear’s business stays resilient enough to enable it to keep meeting expectations, a re-rating may be in store for BBW stock (cheap at 7.6 times forward earnings).
Dillard’s (DDS)
Source: JHVEPhoto/ShutterStock.com
As with BBW, a strong track record and low valuation make Dillard’s (NYSE:DDS) one of the best retail stocks. As I discussed late last month, while the department store stock’s multi-year hot run kicked off due to a short-squeeze, subsequent waves have been fueled by improving fundamentals.
Yes, the company has been somewhat hit by the latest macro challenges. As seen in recent results, revenue and earnings have declined year-over-year. However, one can argue that this slowdown is already baked into the valuation of DDS stock. Shares trade for just 7.7 times forward earnings. Don’t get me wrong. I don’t expect DDS to repeat some of the parabolic moves the stock made during 2021 and 2022. However, if earnings declines are moderate at worst, and this family-run business continues to aggressively repurchase shares, the stock likely has additional room to run in the years ahead.
Dollar General (DG)
Source: Jonathan Weiss / Shutterstock.com
As a discount retailer, one would assume that Dollar General (NYSE:DG) shares should in theory perform well during a time of economic challenges, but those who have held the stock know this not to be true in actuality. That is, DG stock has dropped by nearly 50% over the past twelve months. As I recently discussed, there is good reason for this. In the past year, inflation has put the squeeze on margins. The company a few month back also provided horrendous guidance for the coming quarters.
So, with these issues, why buy DG? With inflation cooling, the chances that the company does begin to experience a rebound in earnings next fiscal year are getting stronger. If earnings begin bouncing back, this retail stock (trading for 15.5 times earnings, at the low end of its historic valuation range) may be able to jumpstart a rebound as well.
Hibbett (HIBB)
Source: LisaCarter / Shutterstock.com
Hibbett (NASDAQ:HIBB) is a retailer of athletic wear and sporting goods, primary in the Southern U.S. Prior to 2021, HIBB was somewhat of a hidden gem, but that year (much like with other sportings goods stocks), a post-pandemic surge in sales fueled a big run for this former under-the-radar name.
However, HIBB stock has since given back most of these gains, and has returned to under-the-radar status. At least, with the long side of the trade. The short side remains very crowded. According to Fintel, 14.8% of HIBB’s outstanding float has been sold short. Even so, these shorts may come to regret betting against Hibbett. The prospect of softening demand already appeared priced-in, given that HIBB trades for only 6.2 times earnings. If results improve in the coming quarters, who knows, HIBB could come off the market back burner, as a short-squeeze play.
Haverty Furniture Companies (HVT)
Source: Shutterstock
Haverty Furniture Companies (NYSE:HVT), as its name may suggest, is a retailer of residential furniture. Shares took a dive during most of 2022, but since last fall, have made a moderate move higher, as the market keeps waiting for the other shoe to drop with a recession, or worse, a housing crash.
Yet if your take on where the U.S. economy from here is contrary to that of the doom-and-gloom crowd, HVT stock is another strong choice among retailers. Haverty’s is cash-rich, with a $109.1 million war chest against a $493 million market cap.
If the economy worsens, the company may be able to absorb possible operating losses, and ride things out. At the same time, if there is a soft landing for the economy and for housing, this cheap stock (forward multiple of 8.2) may have room to rally significantly above current prices.
MarineMax (HZO)
Source: shutterstock.com/Harry Powell
MarineMax (NYSE:HZO) is America’s largest recreational boat and yacht dealer. Not exactly the type of business you want to own in a downturn/possible recession, right? Well, not necessarily. Admittedly, it’s not the best of times for Marinemax right now.
Although the company in July reported strong results for the June quarter, given that, lately, boat manufacturers like Mastercraft (NASDAQ:MCFT) have slashed guidance, the coming quarters may not be so stellar. This may explain why HZO stock has sunk back lower, after experiencing a post-earnings surge.
Still, shares may be back in the buy zone. Why? Trading for 6 times earnings, this is yet another retailer stock where uncertainty has been factored in heavily. Even the mere reporting of “less bad” results (forecasts call for earnings to drop 12.5% next fiscal year) may be enough to spark a relief rally for this “bottom-fisher’s buy.”
Macy’s (M)
Source: digitalreflections / Shutterstock.com
As my InvestorPlace colleague Joel Baglole recently argued, Macy’s (NYSE:M) is one of the best retail stocks, if you’re looking to wager on a soft landing. Given the department store retailer’s resilience thus far (in terms of operating performance), it may be well-positioned to report the sorts of “less bad” results that could catapult the stock back to higher prices.
However, that’s not the only reason to like M stock right now. Not only do shares trade at a forward earnings multiple (4.1) well-within deep value territory. The stock trades at a 23% discount to its book value as well, thanks to the underlying value of its owned real estate. Analysts and commentators have thrown up a wide range of estimated valuations for the Macy’s real estate portfolio, but even more conservative estimates ($6 billion-$8 billion) exceed the company’s market cap ($3.2 billion).
On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
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The post The 7 Best Retail Stocks to Buy Now: September 2023 appeared first on InvestorPlace.
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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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com As with BBW, a strong track record and low valuation make Dillard’s (NYSE:DDS) one of the best retail stocks. However, one can argue that this slowdown is already baked into the valuation of DDS stock. I don’t expect DDS to repeat some of the parabolic moves the stock made during 2021 and 2022.
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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com As with BBW, a strong track record and low valuation make Dillard’s (NYSE:DDS) one of the best retail stocks. However, one can argue that this slowdown is already baked into the valuation of DDS stock. I don’t expect DDS to repeat some of the parabolic moves the stock made during 2021 and 2022.
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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com As with BBW, a strong track record and low valuation make Dillard’s (NYSE:DDS) one of the best retail stocks. However, one can argue that this slowdown is already baked into the valuation of DDS stock. I don’t expect DDS to repeat some of the parabolic moves the stock made during 2021 and 2022.
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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com As with BBW, a strong track record and low valuation make Dillard’s (NYSE:DDS) one of the best retail stocks. However, one can argue that this slowdown is already baked into the valuation of DDS stock. I don’t expect DDS to repeat some of the parabolic moves the stock made during 2021 and 2022.
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eafff93c-4b52-4a76-be32-6de77b7ef5b4
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719137.0
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2023-09-08 00:00:00 UTC
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Kohl's (KSS) Gains on Strategic Growth Efforts & Partnership
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https://www.nasdaq.com/articles/kohls-kss-gains-on-strategic-growth-efforts-partnership
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Focus on strategic efforts, which include enhancing customer experience, are working favorably for Kohl’s Corporation KSS. The leading omni-channel retailer undertakes prudent partnerships, which fuel growth. Strength in omni-channel capabilities is worth noting.
Let’s discuss this in detail.
Strategic Efforts on Track
Kohl’s is progressing toward its 2023 key priorities, including improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet. Management is focused on driving growth in gifting, Sephora, impulse, home decor and longer-term new stores to enhance customer experience. The company has various opportunities to drive its core apparel and footwear offerings.
Kohl's is committed to driving growth with its loyalty programs, including Kohl's Cash, Kohl's Rewards and private-label credit cards. In the second quarter of fiscal 2023, management launched a co-brand credit card with Capital One to a few customers. Furthermore, KSS reduced inventory by 14% in the fiscal second quarter. Kohl's is on track with managing costs, focusing on lowering the marketing spend ratio and bringing more extraordinary technology into its operations to enhance productivity.
Image Source: Zacks Investment Research
Partnership Boosts Performance
Kohl’s solid partnership with Sephora to create a new era of elevated Beauty at Kohl's is noteworthy and generating impressive results. In its lastearnings call management highlighted that Sephora Kohl's continues to exceed its expectations, fueling a total beauty sales rise of approximately 90%. The company opened nearly 200 Sephora shops during the second quarter of fiscal 2023. Sephora will be featured in over 900 stores by the end of 2023. The company will expand the small format Sephora shops over the next couple of years.
Omni-channel Strength
Kohl’s is focused on growing its store portfolio and accelerating digital business growth. Management is on track to open seven new stores, including one relocation, during 2023. Given the need of the hour, management has also been speeding up its digital marketing and enhancing its website to cater to customers’ needs.
The company’s solid endeavors to boost mobile traffic have augmented the adoption of the Kohl app, making it a vital constituent of online sales. To improve online offerings, Kohl’s has been expanding its e-commerce fulfillment centers and strengthening in-store pickups.
Is All Rosy for Kohl’s?
During the fiscal second quarter, Kohl's gross margin contracted 61 basis points (bps) year over year to 39%. The downside can be attributed to product cost inflation and increased shrinkage.
The company’s SG&A expenses escalated by 1.6% to $1,304 million. The rise in such costs was mainly due to wage pressure, increased store expenses on Sephora openings and store experience investments. SG&A expenses rose 208 basis points (bps) to 33.5% as a percentage of total revenues. Management expects fiscal third-quarter SG&A expenses to increase nearly 3% year over year due to additional store-related investments and 45 Sephora small shop openings.
Nevertheless, focus on growth endeavors will likely help Kohl’s stay afloat amid such hurdles.
Shares of the Zacks Rank #3 (Hold) company have increased 8.1% in the past three months against the industry’s decline of 7.7%.
Solid Retail Picks
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $34.69 to $39.62 in the past 30 days.
Ross Stores ROST currently carries a Zacks Rank #2 (Buy). This off-price retailer has an expected EPS growth rate of 11.6% for three to five years.
The Zacks Consensus Estimate for Ross Stores’ current financial-year EPS suggests growth of 19.4% from the year-ago reported figure. ROST has a trailing four-quarter earnings surprise of 11.4% on average.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, a multi-channel retailer of plush animals and related products, currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year EPS suggests growth of 14.3% from the year-ago reported figure.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Solid Retail Picks Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Solid Retail Picks Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Solid Retail Picks Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average.
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Solid Retail Picks Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-09-08 00:00:00 UTC
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Will Walmart's (WMT) New Starting Pay Structure Help Cut Costs?
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https://www.nasdaq.com/articles/will-walmarts-wmt-new-starting-pay-structure-help-cut-costs
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Walmart Inc. WMT has been undertaking consistent efforts to improve operations, including driving revenues as well as curtailing costs. To lower its cost burden, the supermarket giant is making alterations to its beginning hourly wage structure for entry-level store employees, as reported by various media sources. This move appears appropriate in a slowing labor market.
Inside the Headlines
Sources revealed that store employees like personal shoppers, cashiers, stockers, self-checkout helpers and workers handling departments like sporting goods or electronics would be entitled to the same hourly starting wages paid at the store, unlike being paid differently like before. That said, deli, bakery and auto center employees will continue earning greater entry-level wages.
This move will neither alter WMT’s minimum hourly wage of $14 nor lead to any pay reductions for the current workers. Industry experts believe that the new wage structure will not only help the omnichannel retailer lower costs but also help fuel consistency across store staffing and facilitate improved customer service.
Image Source: Zacks Investment Research
What’s More?
Walmart has been gaining from its sturdy comp sales record, which is driven by its store expansion efforts and splendid e-commerce performance. Walmart has been undertaking several efforts to enhance merchandise assortments.
Also, the company has been focused on store remodeling to upgrade them with advanced in-store and digital innovations. Walmart is also gaining from its compelling pricing strategy, which helps it draw customers.
In the second quarter of fiscal 2024, U.S. comp sales, excluding fuel, improved by 6.4% due to a 3.4% increase in the average ticket and transaction growth of 2.9%. The segment experienced gains from grocery and health & wellness. E-commerce boosted comps by 230 bps.
Sam’s Club’s comp sales, excluding fuel, grew 5.5%. While transactions grew 2.9%, the average ticket rose 2.5%. Comp sales saw strength across most categories, mainly led by food and consumables and healthcare.
Solid results, confidence in the ongoing business momentum and a favorable customer response to its value plan encouraged the company to pull up its guidance for fiscal 2024 in its second-quarter earnings release.
For fiscal 2024, Walmart now expects consolidated net sales growth of 4-4.5% at cc compared with the previous view of nearly 3.5% growth. Management expects the consolidated operating income to increase roughly 7-7.5% at cc now, including a 30-bps positive impact of LIFO. The consolidated operating income was earlier expected to increase 4-4.5% at cc, including the LIFO impact. Management now envisions an adjusted EPS in the band of $6.36-$6.46, up from the earlier range of $6.10-$6.20.
Shares of this Zacks Rank #2 (Buy) company have rallied 20.5% in the past six months compared with the industry’s growth of 16.7%.
Other Solid Picks
Here, we have highlighted three other top-ranked stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $6.66 to $7.04 in the past 30 days.
Ross Stores ROST currently carries a Zacks Rank #2. This off-price retailer has an expected EPS growth rate of 11.6% for three to five years.
The Zacks Consensus Estimate for Ross Stores’ current financial-year EPS suggests growth of 19.4% from the year-ago reported figure. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, which is a multi-channel retailer of plush animals and related products, holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year EPS suggests growth of 14.3% from the year-ago reported figure.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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719139.0
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2023-09-07 00:00:00 UTC
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Zacks.com featured highlights include Dillard's, The Andersons, Shift4 Payments and Ingersoll Rand
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DDS
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-dillards-the-andersons-shift4-payments-and-ingersoll
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For Immediate Release
Chicago, IL – September 7, 2023 – Stocks in this week’s article are Dillard's DDS, The Andersons ANDE, Shift4 Payments FOUR and Ingersoll Rand IR.
4 Stocks Backed by High Efficiency to Strengthen Your Portfolio
A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance. In fact, efficiency level, which measures a company's capability to transform available input into output, is often considered an important parameter for gauging its potential to make profits.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks.
These efficiency ratios are:
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company's potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the "accounts receivable turnover ratio" or "debtor's turnover ratio" is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company's capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company's ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company's ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Here are the top four stocks that made it through the screen:
Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. Dillard's has an average four-quarter positive earnings surprise of 77.1%.
The Andersons is a regional grain merchandiser with diversified businesses. The Andersons has an average four-quarter positive earnings surprise of 64.4%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. Shift4 Payments has an average four-quarter positive earnings surprise of 21.9%.
Ingersoll Rand is a global industrial company, with expertise in industrial and mission-critical flow creation technologies. Ingersoll Rand has an average four-quarter positive earnings surprise of nearly 14.9%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2145272/4-stocks-backed-by-high-efficiency-to-strengthen-your-portfolio
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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For Immediate Release Chicago, IL – September 7, 2023 – Stocks in this week’s article are Dillard's DDS, The Andersons ANDE, Shift4 Payments FOUR and Ingersoll Rand IR. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, efficiency level, which measures a company's capability to transform available input into output, is often considered an important parameter for gauging its potential to make profits.
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For Immediate Release Chicago, IL – September 7, 2023 – Stocks in this week’s article are Dillard's DDS, The Andersons ANDE, Shift4 Payments FOUR and Ingersoll Rand IR. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. A high receivables turnover ratio or the "accounts receivable turnover ratio" or "debtor's turnover ratio" is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
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Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – September 7, 2023 – Stocks in this week’s article are Dillard's DDS, The Andersons ANDE, Shift4 Payments FOUR and Ingersoll Rand IR. 4 Stocks Backed by High Efficiency to Strengthen Your Portfolio A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.
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For Immediate Release Chicago, IL – September 7, 2023 – Stocks in this week’s article are Dillard's DDS, The Andersons ANDE, Shift4 Payments FOUR and Ingersoll Rand IR. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. The Andersons has an average four-quarter positive earnings surprise of 64.4%.
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ab1eaf5c-c10b-427c-b7fd-1df60a53ac82
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719140.0
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2023-09-06 00:00:00 UTC
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Walmart (WMT) Is Marching Ahead of the Industry: Here's Why
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https://www.nasdaq.com/articles/walmart-wmt-is-marching-ahead-of-the-industry%3A-heres-why
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Walmart Inc. WMT enjoys a favorable position as its shares rose close to 20% in the past year compared with the industry’s growth of 17.6%. The supermarket giant has also outperformed the Zacks Retail – Wholesale sector’s growth of 7.5% in the same time frame. Walmart’s unparalleled efforts to boost omnichannel efforts and upgrade customer experience are a major reason behind its growth story.
Over a sustained period, this Zacks Rank #2 (Buy) company has achieved consecutive growth in comp sales, thanks to its remarkable performance in both brick-and-mortar stores and digital platforms. We believe that these upsides keep Walmart well-placed for continued gains. The Zacks Consensus Estimate for the current fiscal year EPS has jumped from $6.22 to $6.42 in the past 30 days.
E-commerce - A Significant Driving Force
Walmart's e-commerce operations have been expanding. During the second quarter, e-commerce net sales accounted for 15% of the company's total net sales. The company has been actively pursuing numerous e-commerce initiatives, which encompass acquisitions, partnerships, and enhancements to delivery and payment systems.
The company is also making innovations in its supply chain, increasing capacity, and establishing new ventures such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace, and Walmart Fulfillment Services. In the second quarter of fiscal 2024, global e-commerce sales saw an impressive 24% increase, driven by the strength of its omnichannel capabilities, including pickup and delivery services.
Within the United States, e-commerce sales jumped 24%, largely propelled by the robust performance of pickup and delivery services as well as advertising efforts. The International segment experienced a 26% increase in e-commerce sales, primarily due to the strength of store-fulfilled orders. At Sam's Club, e-commerce sales witnessed 18% growth, largely attributed to the solid performance of curbside pickup services.
Image Source: Zacks Investment Research
Enhancing Delivery Services
Walmart has made significant strides in strengthening its delivery capabilities, evident through various strategic moves. These include partnering with Salesforce, expanding its InHome delivery service, investing in DroneUp, launching the Walmart+ membership program, and conducting a pilot program with Cruise to explore grocery delivery using self-driving electric vehicles.
Prior to these initiatives, Walmart introduced Express Delivery in April 2021 and formed partnerships with Point Pickup, Skipcart, AxleHire, and Roadie in January 2019. Additionally, the acquisition of Parcel in September 2017 was a key strategic move to enhance its delivery services. Additionally, Walmart offers store and curbside pickup options. As of the second quarter of fiscal 2024, Walmart U.S. had nearly 4,600 pickup locations and more than 4,000 same-day delivery stores. As of Jan 31, 2023, the company had more than 8,100 pickups and nearly 7,000 delivery locations globally.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote
Splendid Comp Sales
Strong e-commerce business, combined with unmatched store operations, has been contributing to Walmart’s comp sales. The company has been paying attention to renovating stores, enhancing product offerings and undertaking in-store and digital advancements. WMT remodeled 165 U.S. stores in the second quarter of fiscal 2024.
Walmart's effective pricing strategy has also proven advantageous, playing a pivotal role in attracting and retaining customers. U.S. comp sales, excluding fuel, improved 6.4% in the second quarter. The segment experienced gains from grocery and health & wellness. Moreover, e-commerce boosted comps by 230 basis points (bps). Sam’s Club’s comp sales, excluding fuel, grew 5.5%. Comp sales saw strength across most categories, mainly led by food and consumables and healthcare.
A Look Ahead
For fiscal 2024, Walmart expects consolidated net sales growth of 4-4.5% at constant currency (cc). Management expects the consolidated operating income to increase roughly 7-7.5% at cc, including a 30 bps positive impact of LIFO. Management envisions adjusted EPS in the band of $6.36-$6.46, suggesting growth from $6.29 recorded in fiscal 2023.
Other Solid Picks
Here, we have highlighted three other top-ranked stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's third-quarter EPS has increased from $6.66 to $7.04 in the past 30 days.
Ross Stores ROST currently carries a Zacks Rank #2. This off-price retailer has an expected EPS growth rate of 11.6% for three to five years.
The Zacks Consensus Estimate for Ross Stores’ current financial-year EPS suggests growth of 19.4% from the year-ago reported figure. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, which is a multi-channel retailer of plush animals and related products, holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year EPS suggests growth of 14.3% from the year-ago reported figure.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average.
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Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1%, on average. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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c912d4a1-8dbc-4768-9259-612e58cf6efb
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719141.0
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2023-09-06 00:00:00 UTC
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4 Stocks Backed by High Efficiency to Strengthen Your Portfolio
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https://www.nasdaq.com/articles/4-stocks-backed-by-high-efficiency-to-strengthen-your-portfolio
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A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance. In fact, efficiency level, which measures a company’s capability to transform available input into output, is often considered an important parameter for gauging its potential to make profits.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks.
These efficiency ratios are:
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Screening Criteria
In addition to the above-mentioned ratios, we have added a favorable Zacks Rank — Zacks Rank #1 (Strong Buy) — to the screen to make this strategy more profitable. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average
(Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.)
The use of these few criteria narrowed down the universe of over 7,906 stocks to 21.
Here are the top four stocks that made it through the screen:
Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Dillard's has an average four-quarter positive earnings surprise of 77.1%.
The Andersons ANDE is a regional grain merchandiser with diversified businesses. The Andersons has an average four-quarter positive earnings surprise of 64.4%.
Shift4 Payments FOUR is a provider of integrated payment processing and technology solutions. Shift4 Payments has an average four-quarter positive earnings surprise of 21.9%.
Ingersoll Rand IR is a global industrial company, with expertise in industrial and mission-critical flow creation technologies. Ingersoll Rand has an average four-quarter positive earnings surprise of nearly 14.9%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Here are the top four stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, efficiency level, which measures a company’s capability to transform available input into output, is often considered an important parameter for gauging its potential to make profits.
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Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are the top four stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. A high receivables turnover ratio or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
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Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are the top four stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. A high receivables turnover ratio or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
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Here are the top four stocks that made it through the screen: Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Click to get this free report The Andersons, Inc. (ANDE) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios.
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3535c984-5790-40b8-a82d-2104197875d0
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719142.0
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2023-08-31 00:00:00 UTC
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Dillard`s Inc. - (DDS) Price Target Increased by 22.61% to 303.28
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https://www.nasdaq.com/articles/dillards-inc.-dds-price-target-increased-by-22.61-to-303.28
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The average one-year price target for Dillard`s Inc. - (NYSE:DDS) has been revised to 303.28 / share. This is an increase of 22.61% from the prior estimate of 247.35 dated August 1, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 166.65 to a high of 430.50 / share. The average price target represents a decrease of 13.22% from the latest reported closing price of 349.48 / share.
What is the Fund Sentiment?
There are 484 funds or institutions reporting positions in Dillard`s Inc. -. This is a decrease of 46 owner(s) or 8.68% in the last quarter. Average portfolio weight of all funds dedicated to DDS is 0.27%, an increase of 8.50%. Total shares owned by institutions decreased in the last three months by 4.71% to 9,603K shares.
The put/call ratio of DDS is 0.30, indicating a bullish outlook.
What are Other Shareholders Doing?
Newport Trust holds 5,007K shares representing 30.53% ownership of the company. In it's prior filing, the firm reported owning 5,092K shares, representing a decrease of 1.69%. The firm increased its portfolio allocation in DDS by 33.21% over the last quarter.
DFSVX - U.s. Small Cap Value Portfolio - Institutional Class holds 183K shares representing 1.12% ownership of the company. In it's prior filing, the firm reported owning 232K shares, representing a decrease of 26.78%. The firm decreased its portfolio allocation in DDS by 33.27% over the last quarter.
DFFVX - U.S. Targeted Value Portfolio - Institutional Class holds 162K shares representing 0.99% ownership of the company. In it's prior filing, the firm reported owning 164K shares, representing a decrease of 1.76%. The firm decreased its portfolio allocation in DDS by 17.24% over the last quarter.
Clientfirst Wealth Management holds 157K shares representing 0.96% ownership of the company. No change in the last quarter.
D. E. Shaw holds 155K shares representing 0.94% ownership of the company. In it's prior filing, the firm reported owning 120K shares, representing an increase of 22.36%. The firm increased its portfolio allocation in DDS by 65.51% over the last quarter.
Dillard`s Background Information
(This description is provided by the company.)
Dillard's, Inc., is an upscale American department store chain with approximately 282 stores in 29 states and headquartered in Little Rock, Arkansas. Currently, the largest number of stores are located in Texas with 57 and Florida with 42.
Additional reading:
Dillard’s, Inc. Reports Second Quarter and Year-to-Date Results
Dillard’s, Inc. Announces New $500 Million Share Repurchase Program and Declares $0.20 Cash Dividend
Dillard’s, Inc. Reports First Quarter Results
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
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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The average one-year price target for Dillard`s Inc. - (NYSE:DDS) has been revised to 303.28 / share. Average portfolio weight of all funds dedicated to DDS is 0.27%, an increase of 8.50%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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The average one-year price target for Dillard`s Inc. - (NYSE:DDS) has been revised to 303.28 / share. Average portfolio weight of all funds dedicated to DDS is 0.27%, an increase of 8.50%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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The average one-year price target for Dillard`s Inc. - (NYSE:DDS) has been revised to 303.28 / share. Average portfolio weight of all funds dedicated to DDS is 0.27%, an increase of 8.50%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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The firm decreased its portfolio allocation in DDS by 33.27% over the last quarter. The firm decreased its portfolio allocation in DDS by 17.24% over the last quarter. The average one-year price target for Dillard`s Inc. - (NYSE:DDS) has been revised to 303.28 / share.
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8230a613-5fd9-4c52-b6cc-4eab4afa35ac
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719143.0
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2023-08-29 00:00:00 UTC
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7 Retail Stocks Due for a Massive Short Squeeze
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DDS
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https://www.nasdaq.com/articles/7-retail-stocks-due-for-a-massive-short-squeeze
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As consumer spending has (and continues to) cool, many retail stocks have become heavily sold short.
In many cases, these large wagers by the short-seller community (considered to be part of the “smart money”) appear to be shrewd bets.
However, in situations where the short side of the trade has become very crowded (i.e. the percentage of outstanding float that has been sold short has climbed to 15%, 20%, or even higher), there may be an opportunity for speculators on the long side of the trade.
“Short squeeze mania” may not be as strong as it was in 2021 or 2022, but it may take only a modicum of positive surprises to cause heavily shorted stocks in this sector to spike in price.
The reporting of better-than-expected quarterly results, a financing move that lessens the risk of bankruptcy/default, or any other action that signals “less bad” fundamentals could spark rallies among several of these stocks.
In turn, these rallies could leave the short side scrambling, forced to cover positions, causing these stocks to rise even higher.
That’s the story here with these seven heavily-shorted retail stocks. “Squeeze potential” runs high with each of them.
Big 5 Sporting Goods (BGFV)
Source: Michael Vi/ShutterStock.com
The odd mix of high fear/uncertainty and high consumer spending produced a massive boom for Big 5 Sporting Goods (NASDAQ:BGFV) during the pandemic era.
As a result, shares in the firearms and sporting goods retailer went from $2 to over $40 per share between mid-2020 and late-2021.
However, with the emergence of economic challenges like high inflation affecting consumer spending, revenue and earnings have declined. This, in turn, resulted in a big decline in the BGFV stock price, which today changes hands for around $8 per share.
But while the stock is heavily-shorted (12.6% of float sold short, according to Fintel), on the view Big 5’s fundamentals keep worsening from here, there may be squeeze potential here with BGFV.
If results improve (as guidance suggests) next quarter, increasing the changes Big 5 maintains its 12.4% dividend, shares could squeeze back toward higher prices.
Big Lots (BIG)
Source: Jonathan Weiss / Shutterstock.com
At first glance, Big Lots (NYSE:BIG) seems like one of the heavily shorted retail stocks where you don’t want to go contrarian.
Several quarters of high operating losses, coupled with the suspension of its dividend, have already caused shares in this discount retailer to plummet by more than 90% since mid-2021.
Yet while BIG stock may look like the next retailer at risk of becoming the next Bed Bath & Beyond (OTCMKTS:BBBYQ), that sort of “game over” moment may not necessarily arrive.
Along with eliminating the dividend, Big Lots has made some other moves in recent months to bolster liquidity.
For instance, a $318 million sale/leaseback agreement inked in July. Bankruptcy risk is still heavily baked into BIG’s share price. Further developments indicating that it will avoid Chapter 11 could fuel a squeeze frenzy for this stock, which has had nearly 23% of its outstanding float sold short.
Dillard’s (DDS)
Source: JHVEPhoto/ShutterStock.com
Dillard’s (NYSE:DDS) was no GameStop (NYSE:GME), yet it was one of the retailer stock boosted by 2021’s “meme stock mania.”
However, unlike GME, fueled fully by speculative frenzy, with DDS, what started as a short-squeeze morphed into a continued rally powered by improving fundamentals.
DDS stock stayed resilient through 2022 and into 2023, but more recently, shares have again come under pressure. The economic slowdown suggests tougher times ahead for department store chains like this one.
With this, it makes sense that short interest in DDS has climbed again, to 16.62% of outstanding float.
However, much like the last time, short-sellers could end up taking big losses. Recently, profitability has declined only moderately.
These “less bad” results, combined with Dillards’ move to continue buying back stock, could be enough to squeeze DDS (at around $340 per share today) back to its 52-week high ($417.86 per share).
Joann (JOAN)
Source: James R Poston / Shutterstock.com
Back in February, I argued that Joann (NASDAQ:JOAN) was one of the top retail stocks to avoid. A worsening fiscal performance and a suspended dividend pointed to even lower prices ahead for the fabric store chain operator.
If you sold JOAN stock at this time, you avoided significant further losses. Shares during this time frame have dipped from $4.40 to just over $1 per share. Yet while the situation has deteriorated further and bankruptcy fears run high, a squeeze may be possible.
JOAN’s outstanding float is 23%. Any indication that the company can avoid bankruptcy, may be enough to spark a big rip higher for Joann shares.
Something like announcing that the retailer has found a new permanent CEO, could cause a spike as well for the stock. Tread carefully here, but consider adding JOAN to your short-squeeze watchlist.
Lovesac (LOVE)
Source: BCFC / Shutterstock.com
Lovesac (NASDAQ:LOVE) is not just one of the short-squeeze retail stocks. It is also one of the most heavily shorted stocks overall right now.
It makes sense in today’s climate that nearly 30% of this home furnishing stock’s outstanding float has been sold short.
However, the short-side’s big bet against LOVE stock could come up snake eyes. As InvestorPlace’s Rich Duprey recently put it, “Lovesac is not a broken business.”
Sell-side forecasts still call for the company to remain profitable this fiscal year. Next fiscal year (ending January 2025), earnings could come in at nearly $3 per share.
LOVE today trades for just 7.5 times this forecast. Solid results in the coming quarters could ease the uncertainty surrounding future performance.
This in turn may cause a short-squeeze, as the longs bid up LOVE to a higher forward valuation, leaving the shorts forced to close out positions at higher prices.
The Children’s Place (PLCE)
Source: rblfmr/Shutterstock.com
The Children’s Place (NASDAQ:PLCE) is another of the retail stocks with very high short interest. The percentage of float sold short with this childrens’ apparel retailer comes currently at 21.9%. So, what besides a crowded short-side make this a “squeeze contender?”
Admittedly, this company reported horrendous numbers for the preceding quarter. Losses per share came in at $2.82, versus a loss of $1.01 per share reported in the prior year’s quarter.
However, the company (which is transforming into mainly an e-commerce retailer) is guiding for a return to profitability during this quarter and the next.
According to analysts, earnings could more than quadruple next fiscal year. If the potential for materially-improved results becomes a near-certainty, this $27 per share stock could make a big leap back toward past loftier price levels (at few years ago, PLCE stock traded for over $100 per share).
Shoe Carnival (SCVL)
Source: JJava Designs / Shutterstock.com
Short interest for Shoe Carnival (NASDAQ:SCVL) stock right now is at 15.8%.
Short-sellers likely wager that the shoe retailer, which experienced a big jump in earnings during the pandemic, returns to pre-pandemic levels of profitability.
Yet with SCVL stock trading for 6.6 times forward earnings, it’s possible that the market has already more-than-priced-in the potential for weaker results moving forward.
Even if earnings do keep declining from here, if they remain above the level of earnings Shoe Carnival reported in the fiscal years preceding the virus, this may be enough to fuel a re-rating.
Given the high level of short interest, this re-rating could be fairly substantial. That’s not to say SCVL will re-hit its high water mark ($43.31 per share). However, re-hitting $30 per share may be within reach. Not too shabby, given the stock trades in the low-$20s per share today.
On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
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The post 7 Retail Stocks Due for a Massive Short Squeeze appeared first on InvestorPlace.
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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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com Dillard’s (NYSE:DDS) was no GameStop (NYSE:GME), yet it was one of the retailer stock boosted by 2021’s “meme stock mania.” However, unlike GME, fueled fully by speculative frenzy, with DDS, what started as a short-squeeze morphed into a continued rally powered by improving fundamentals. DDS stock stayed resilient through 2022 and into 2023, but more recently, shares have again come under pressure. With this, it makes sense that short interest in DDS has climbed again, to 16.62% of outstanding float.
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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com Dillard’s (NYSE:DDS) was no GameStop (NYSE:GME), yet it was one of the retailer stock boosted by 2021’s “meme stock mania.” However, unlike GME, fueled fully by speculative frenzy, with DDS, what started as a short-squeeze morphed into a continued rally powered by improving fundamentals. DDS stock stayed resilient through 2022 and into 2023, but more recently, shares have again come under pressure. With this, it makes sense that short interest in DDS has climbed again, to 16.62% of outstanding float.
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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com Dillard’s (NYSE:DDS) was no GameStop (NYSE:GME), yet it was one of the retailer stock boosted by 2021’s “meme stock mania.” However, unlike GME, fueled fully by speculative frenzy, with DDS, what started as a short-squeeze morphed into a continued rally powered by improving fundamentals. DDS stock stayed resilient through 2022 and into 2023, but more recently, shares have again come under pressure. With this, it makes sense that short interest in DDS has climbed again, to 16.62% of outstanding float.
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Dillard’s (DDS) Source: JHVEPhoto/ShutterStock.com Dillard’s (NYSE:DDS) was no GameStop (NYSE:GME), yet it was one of the retailer stock boosted by 2021’s “meme stock mania.” However, unlike GME, fueled fully by speculative frenzy, with DDS, what started as a short-squeeze morphed into a continued rally powered by improving fundamentals. DDS stock stayed resilient through 2022 and into 2023, but more recently, shares have again come under pressure. With this, it makes sense that short interest in DDS has climbed again, to 16.62% of outstanding float.
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673f402a-7fa1-441a-94e2-eaf3d0747143
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719144.0
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2023-08-28 00:00:00 UTC
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Best Momentum Stocks to Buy for August 28th
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DDS
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https://www.nasdaq.com/articles/best-momentum-stocks-to-buy-for-august-28th
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nan
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nan
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 28th:
Gladstone Capital Corporation GLAD: This specialty finance company that invests in debt securities has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 6.7% over the last 60 days.
Gladstone Capital Corporation Price and Consensus
Gladstone Capital Corporation price-consensus-chart | Gladstone Capital Corporation Quote
Gladstone’s shares gained 6% over the last three months compared with the S&P 500’s advance of 4.4%. The company possesses a Momentum Score of B.
Gladstone Capital Corporation Price
Gladstone Capital Corporation price | Gladstone Capital Corporation Quote
Dillard's, Inc. DDS: This large fashion retailing company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days.
Dillard's, Inc. Price and Consensus
Dillard's, Inc. price-consensus-chart | Dillard's, Inc. Quote
Dillard’s shares gained 18.4% over the last three months compared with the S&P 500’s advance of 4.4%. The company possesses a Momentum Score of A.
Dillard's, Inc. Price
Dillard's, Inc. price | Dillard's, Inc. Quote
Alpha Metallurgical Resources, Inc. AMR: This met and thermal coal mining company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
Alpha Metallurgical Resources, Inc. Price and Consensus
Alpha Metallurgical Resources, Inc. price-consensus-chart | Alpha Metallurgical Resources, Inc. Quote
Alpha’s shares gained 42% over the last three months compared with the S&P 500’s advance of 4.4%. The company possesses a Momentum Score of B.
Alpha Metallurgical Resources, Inc. Price
Alpha Metallurgical Resources, Inc. price | Alpha Metallurgical Resources, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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The company possesses a Momentum Score of B. Gladstone Capital Corporation Price Gladstone Capital Corporation price | Gladstone Capital Corporation Quote Dillard's, Inc. DDS: This large fashion retailing company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 28th: Gladstone Capital Corporation GLAD: This specialty finance company that invests in debt securities has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 6.7% over the last 60 days.
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The company possesses a Momentum Score of B. Gladstone Capital Corporation Price Gladstone Capital Corporation price | Gladstone Capital Corporation Quote Dillard's, Inc. DDS: This large fashion retailing company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Gladstone Capital Corporation Price and Consensus Gladstone Capital Corporation price-consensus-chart | Gladstone Capital Corporation Quote Gladstone’s shares gained 6% over the last three months compared with the S&P 500’s advance of 4.4%.
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The company possesses a Momentum Score of B. Gladstone Capital Corporation Price Gladstone Capital Corporation price | Gladstone Capital Corporation Quote Dillard's, Inc. DDS: This large fashion retailing company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. Dillard's, Inc. Price Dillard's, Inc. price | Dillard's, Inc. Quote Alpha Metallurgical Resources, Inc. AMR: This met and thermal coal mining company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
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The company possesses a Momentum Score of B. Gladstone Capital Corporation Price Gladstone Capital Corporation price | Gladstone Capital Corporation Quote Dillard's, Inc. DDS: This large fashion retailing company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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c0092101-7d09-4839-9fc3-ffced136cc64
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719145.0
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2023-08-28 00:00:00 UTC
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New Strong Buy Stocks for August 28th
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DDS
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https://www.nasdaq.com/articles/new-strong-buy-stocks-for-august-28th
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nan
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nan
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
CRH plc CRH: This manufacturer of building materials has seen the Zacks Consensus Estimate for its current year earnings increasing 11.5% over the last 60 days.
CRH PLC Price and Consensus
CRH PLC price-consensus-chart | CRH PLC Quote
Guess?, Inc. GES: This apparel and accessories company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days.
Guess?, Inc. Price and Consensus
Guess?, Inc. price-consensus-chart | Guess?, Inc. Quote
Dillard's, Inc. DDS: This large fashion retailing company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days.
Dillard's, Inc. Price and Consensus
Dillard's, Inc. price-consensus-chart | Dillard's, Inc. Quote
Toll Brothers, Inc. TOL: This residential finance company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.2% over the last 60 days.
Toll Brothers Inc. Price and Consensus
Toll Brothers Inc. price-consensus-chart | Toll Brothers Inc. Quote
Swire Pacific Limited SWRAY: This Hong Kong based company that engages in aviation, property, beverages, marine, and trading and industrial businesses has seen the Zacks Consensus Estimate for its current year earnings increasing 13.6% over the last 60 days.
Swire Pacific Ltd. Price and Consensus
Swire Pacific Ltd. price-consensus-chart | Swire Pacific Ltd. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Guess?, Inc. (GES) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Swire Pacific Ltd. (SWRAY) : Free Stock Analysis Report
CRH PLC (CRH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Guess?, Inc. Price and Consensus Guess?, Inc. price-consensus-chart | Guess?, Inc. Quote Dillard's, Inc. DDS: This large fashion retailing company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Swire Pacific Ltd. (SWRAY) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report To read this article on Zacks.com click here. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Swire Pacific Ltd. (SWRAY) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report To read this article on Zacks.com click here. Guess?, Inc. Price and Consensus Guess?, Inc. price-consensus-chart | Guess?, Inc. Quote Dillard's, Inc. DDS: This large fashion retailing company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Dillard's, Inc. Price and Consensus Dillard's, Inc. price-consensus-chart | Dillard's, Inc. Quote Toll Brothers, Inc. TOL: This residential finance company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.2% over the last 60 days.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Swire Pacific Ltd. (SWRAY) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report To read this article on Zacks.com click here. Guess?, Inc. Price and Consensus Guess?, Inc. price-consensus-chart | Guess?, Inc. Quote Dillard's, Inc. DDS: This large fashion retailing company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. CRH PLC Price and Consensus CRH PLC price-consensus-chart | CRH PLC Quote Guess?, Inc. GES: This apparel and accessories company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Swire Pacific Ltd. (SWRAY) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report To read this article on Zacks.com click here. Guess?, Inc. Price and Consensus Guess?, Inc. price-consensus-chart | Guess?, Inc. Quote Dillard's, Inc. DDS: This large fashion retailing company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: CRH plc CRH: This manufacturer of building materials has seen the Zacks Consensus Estimate for its current year earnings increasing 11.5% over the last 60 days.
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2bdbd054-0296-4def-ad86-5d7ee6e6444e
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719146.0
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2023-08-28 00:00:00 UTC
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Time to Buy Stock in These Highly-Ranked Retail Stores
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DDS
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https://www.nasdaq.com/articles/time-to-buy-stock-in-these-highly-ranked-retail-stores
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nan
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nan
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Several retail apparel stores are starting to stand out landing spots on the Zacks Rank #1 (Strong Buy) list.
Checking boxes that investors look for in regard to growth, valuation, or momentum, let's take a look at three of these highly ranked retail stocks.
Dillard’s DDS: After blasting Q2 earnings expectations earlier in the month Dillard’s stock has become more attractive.
Second-quarter EPS of $7.98 was astonishing with the popular department store chain beating estimates of $4.21 a share by 89%. Dillard’s stock currently has an “A” Zacks Style Scores grade for Momentum with the Q2 earnings beat mostly attributed to robust sales, improved margins, and lower expenses.
Image Source: Zacks Investment Research
What makes Dillard’s stock most compelling at the moment is its “A” Zacks Style Score for Value. To that point, Dillard’s stock trades at just 8.6X forward earnings which is roughly on par with its industry average and a very attractive discount to the S&P 500’s 20.6X.
Now looks like a good time to buy with many analysts starting to raise their price targets and Dillard’s recently bumped its quarterly dividend by 25% to $0.25 a share.
Image Source: Zacks Investment Research
Ross Stores ROST: Also surpassing Q2 earnings expectations a few weeks ago, Ross Stores displayed its effective niche as an off-price apparel retailer in heavily populated urban and suburban areas.
Earnings of $1.32 per share beat Q2 estimates of $1.17 a share by 13%. Ross Stores stock also has an “A” Zacks Style Scores grade for Momentum with a long list of analysts raising their price targets. It's noteworthy that the current Average Zacks Price Target offers 8% upside from current levels.
Image Source: Zacks Investment Research
Furthermore, Ross Stores' bottom line is still expanding landing the company a “B” Style Scores grade for Growth.
Annual earnings are now projected to climb 18% in Ross Stores’ current fiscal 2024 and jump another 10% in FY25 to $5.71 per share. Along with steady growth, Ross Stores offers investors a respectable 1.13% annual dividend yield.
Image Source: Zacks Investment Research
Urban Outfitters URBN: At the moment Urban Outfitters stock checks all the trading boxes with an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Urban Outfitters has become a fashionista for Generation Z, with the younger demographic being a catalyst for the company’s growth. Offering trendy fashion apparel and accessories, Urban Outfitters crushed Q2 EPS estimates by 23% last Tuesday with earnings coming in at $1.10 per share compared to expectations of $0.89 a share.
Image Source: Zacks Investment Research
More impressive, annual earnings are now projected at $3.18 per share in Urban Outfitters' current FY24 which would be an 82% increase from FY23 EPS of $1.75. Plus, FY25 earnings are expected to rise another 6%.
Intriguingly, investors aren’t paying a premium for Urban Outfitters' expansive growth with URBN shares trading at a 10.4X forward earnings multiple. In fact, this is a nice discount to the benchmark and its own industry average of 16.1X.
Analysts have also started to raise their price targets for Urban Outfitters stock and the current Average Zacks Price Target offers 17% upside from current levels.
Image Source: Zacks Investment Research
Bottom Line
After impressive earnings beats this month, EPS estimates have trended higher for these retail stocks which correlates with their Zack Rank #1 (Strong Buy). This has also led to analysts raising their price targets for Dillard’s, Ross Stores, and Urban Outfitters stock reconfirming that now may be an ideal time to buy.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard’s DDS: After blasting Q2 earnings expectations earlier in the month Dillard’s stock has become more attractive. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s stock currently has an “A” Zacks Style Scores grade for Momentum with the Q2 earnings beat mostly attributed to robust sales, improved margins, and lower expenses.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s DDS: After blasting Q2 earnings expectations earlier in the month Dillard’s stock has become more attractive. Image Source: Zacks Investment Research Urban Outfitters URBN: At the moment Urban Outfitters stock checks all the trading boxes with an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s DDS: After blasting Q2 earnings expectations earlier in the month Dillard’s stock has become more attractive. Image Source: Zacks Investment Research Urban Outfitters URBN: At the moment Urban Outfitters stock checks all the trading boxes with an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
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Dillard’s DDS: After blasting Q2 earnings expectations earlier in the month Dillard’s stock has become more attractive. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Furthermore, Ross Stores' bottom line is still expanding landing the company a “B” Style Scores grade for Growth.
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1ee09215-d0bc-49f5-92f1-789737fbf0e5
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719147.0
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2023-08-25 00:00:00 UTC
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5 Stocks to Watch on Their Recent Dividend Hikes
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DDS
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https://www.nasdaq.com/articles/5-stocks-to-watch-on-their-recent-dividend-hikes
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nan
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nan
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Investors are cautious as they eagerly wait for Federal Reserve Chairman Jerome Powell’s annual address in Jackson Hole on Friday morning. A strong sell-off in the stock market and climbing treasury yield on Thursday suggest that investors are cautious about any unpleasant surprise. On Thursday, the Dow, the S&P 500 and the Nasdaq lost 1.08%, 1.35% and 1.87%, respectively, whereas the 10-year Treasury bond climbed 4 basis points to 4.24%.
Inflation is gradually moving in a favorable direction as CPI for the month of July rose slightly to 3.2% year on year, responding to a series of 11 aggressive rate hikes since March 2022. Minutes published from the Fed’s July meeting indicated that Fed officials expect a significant risk of inflation. Strong retail sales data and a tight labor market advocate the need for additional monetary tightening measures. Powell has hinted at further rate hikes this year to tackle higher-than-targeted inflation of 2% over the long-term period.
The retail sales for the month of July came in better than expected as inflation slowed. On Aug 15, the Commerce Department reported that retail sales jumped 0.7% in July due to increased online purchases, as well as food and beverage services.
Also, the U.S. non-farm payroll increased by 187,000, unemployment rates declined to 3.5%, and average hourly wage rates gained 0.4% in the same period. This suggests that the economy is still expanding in the third quarter, leaving room for additional rate hikes in anticipation that the slowdown in inflation could be reversed.
The Fed, by raising interest rates, wants to cool off demand by making borrowing money more expensive. The borrowing cost is currently at a 16-year high, which eventually impacts corporate profitability. Such a move by the Fed will slow down the economy, according to its expectations, to counter inflation. This raised questions about whether the Fed will be able to strike the right balance between inflation and interest rate to create a soft landing for the economy. Also, Moody’s downgrading of small and medium-sized U.S. lenders and the review of six banks citing funding risks and weaker profitability hit the panic button.
Internationally, China, the second-biggest economy in the world, is also in trouble as the data suggest contracting economic activity due to sluggish demand and a troubled real estate sector. Export and import for the month of July declined by 14.5% and 12.4%, respectively, in U.S. dollar terms from a year ago. The GDP grew 3% in 2022, the second slowest growth rate since 1976. This was weaker than what markets had expected. Also, investors are deeply concerned about default risk after China’s second-largest property developer Evergrande sought Chapter 15 protection in a U.S. bankruptcy court lately.
Keeping in mind such a critical situation, prudent investors who wish to park their money for regular income and capital preservation can invest in dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
On that note, let us look at companies like Cable One CABO, Murphy USA MUSA, Dillard's DDS, Virtus Investment Partners VRTS and Winnebago Industries WGO that have lately hiked their dividend payouts.
Cable One is a cable company based in Phoenix, AZ. This Zacks Rank #3 (Hold) company provides Internet, cable television and telephone service primarily in the United States. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Aug 18, CABO declared that its shareholders would receive a dividend of $2.95 a share on Sep 15, 2023. CABO has a dividend yield of 1.8%.
Over the past five years, CABO has increased its dividend five times, and its payout ratio presently sits at 28% of earnings. Check Cable One’s dividend history here.
Cable One, Inc. Dividend Yield (TTM)
Cable One, Inc. dividend-yield-ttm | Cable One, Inc. Quote
Murphy USA is headquartered in El Dorado, AR. This Zacks Rank #3 is a leading independent retailer of motor fuel and convenience merchandise in the United States.
On Aug 17, MUSA announced that its shareholders would receive a dividend of 39 cents a share on Sep 7, 2023. MUSA has a dividend yield of 0.5%.
Over the past five years, MUSA has increased its dividend seven times. Its payout ratio now sits at 6% of earnings. Check Murphy USA's dividend history here.
Murphy USA Inc. Dividend Yield (TTM)
Murphy USA Inc. dividend-yield-ttm | Murphy USA Inc. Quote
Dillard's is headquartered in Little Rock, AR. This Zacks Rank #3 company is a large departmental store chain featuring fashion apparel and home furnishings.
On Aug 17, DDS declared that its shareholders would receive a dividend of 25 cents a share on Oct 30, 2023. DDS has a dividend yield of 0.2%.
In the past five years, DDS has increased its dividend five times. Its payout ratio at present sits at 2% of earnings. Check Dillard’s dividend history here.
Dillard's, Inc. Dividend Yield (TTM)
Dillard's, Inc. dividend-yield-ttm | Dillard's, Inc. Quote
Virtus Investment Partners is headquartered in Hartford, CT. This Zacks Rank #3 company provides investment management products and services to individuals and institutions in the United States.
On Aug 17, VRTS declared that its shareholders would receive a dividend of $1.90 a share on Nov 15, 2023. VRTS has a dividend yield of 3.3%.
In the past five years, VRTS has increased its dividend six times. Its payout ratio at present sits at 32% of earnings. Check Virtus Investment Partners’ dividend history here.
Virtus Investment Partners, Inc. Dividend Yield (TTM)
Virtus Investment Partners, Inc. dividend-yield-ttm | Virtus Investment Partners, Inc. Quote
Winnebago Industries is headquartered in Eden Prairie, MN. This Zacks Rank #3 company is a leading producer of recreational vehicles and marine products in the United States.
On Aug 16, WGO declared that its shareholders would receive a dividend of 31 cents a share on Sep 27, 2023. WGO has a dividend yield of 1.7%.
In the past five years, WGO has increased its dividend five times. Its payout ratio at present sits at 12% of earnings. Check Winnebago Industries’ dividend history here.
Winnebago Industries, Inc. Dividend Yield (TTM)
Winnebago Industries, Inc. dividend-yield-ttm | Winnebago Industries, Inc. Quote
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Virtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
Cable One, Inc. (CABO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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On that note, let us look at companies like Cable One CABO, Murphy USA MUSA, Dillard's DDS, Virtus Investment Partners VRTS and Winnebago Industries WGO that have lately hiked their dividend payouts. On Aug 17, DDS declared that its shareholders would receive a dividend of 25 cents a share on Oct 30, 2023. DDS has a dividend yield of 0.2%.
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On that note, let us look at companies like Cable One CABO, Murphy USA MUSA, Dillard's DDS, Virtus Investment Partners VRTS and Winnebago Industries WGO that have lately hiked their dividend payouts. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Virtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Cable One, Inc. (CABO) : Free Stock Analysis Report To read this article on Zacks.com click here. On Aug 17, DDS declared that its shareholders would receive a dividend of 25 cents a share on Oct 30, 2023.
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On that note, let us look at companies like Cable One CABO, Murphy USA MUSA, Dillard's DDS, Virtus Investment Partners VRTS and Winnebago Industries WGO that have lately hiked their dividend payouts. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Virtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Cable One, Inc. (CABO) : Free Stock Analysis Report To read this article on Zacks.com click here. On Aug 17, DDS declared that its shareholders would receive a dividend of 25 cents a share on Oct 30, 2023.
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On that note, let us look at companies like Cable One CABO, Murphy USA MUSA, Dillard's DDS, Virtus Investment Partners VRTS and Winnebago Industries WGO that have lately hiked their dividend payouts. On Aug 17, DDS declared that its shareholders would receive a dividend of 25 cents a share on Oct 30, 2023. DDS has a dividend yield of 0.2%.
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439cd61f-6936-458f-9c15-44a441977c0e
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719148.0
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2023-08-22 00:00:00 UTC
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DDS Makes Notable Cross Below Critical Moving Average
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DDS
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https://www.nasdaq.com/articles/dds-makes-notable-cross-below-critical-moving-average
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nan
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In trading on Tuesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $332.64, changing hands as low as $321.88 per share. Dillard's Inc. shares are currently trading down about 2.9% on the day. The chart below shows the one year performance of DDS shares, versus its 200 day moving average:
Looking at the chart above, DDS's low point in its 52 week range is $254.49 per share, with $417.86 as the 52 week high point — that compares with a last trade of $325.82.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
Also see:
Dividend Yield
Funds Holding LCTX
MRLN Insider Buying
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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In trading on Tuesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $332.64, changing hands as low as $321.88 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $254.49 per share, with $417.86 as the 52 week high point — that compares with a last trade of $325.82. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Dividend Yield Funds Holding LCTX MRLN Insider Buying 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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In trading on Tuesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $332.64, changing hands as low as $321.88 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $254.49 per share, with $417.86 as the 52 week high point — that compares with a last trade of $325.82. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Dividend Yield Funds Holding LCTX MRLN Insider Buying 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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In trading on Tuesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $332.64, changing hands as low as $321.88 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $254.49 per share, with $417.86 as the 52 week high point — that compares with a last trade of $325.82. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Dividend Yield Funds Holding LCTX MRLN Insider Buying 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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In trading on Tuesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $332.64, changing hands as low as $321.88 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $254.49 per share, with $417.86 as the 52 week high point — that compares with a last trade of $325.82. Dillard's Inc. shares are currently trading down about 2.9% on the day.
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0916bdb9-1f56-4884-8c9d-1577a47e7898
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719149.0
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2023-08-12 00:00:00 UTC
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DDS Quantitative Stock Analysis
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DDS
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https://www.nasdaq.com/articles/dds-quantitative-stock-analysis
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating using this strategy is 94% 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.
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.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE PASS
Detailed Analysis of DILLARD'S INC
DDS Guru Analysis
DDS Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
Financial Planning Podcast
About Validea: Validea is aninvestment researchservice 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.
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry.
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Of the 22 guru strategies we follow, DDS rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for DILLARD'S INC (DDS).
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Of the 22 guru strategies we follow, DDS rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for DILLARD'S INC (DDS).
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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161253b4-b08b-433e-b755-ffca2e8abf15
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719150.0
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2023-08-11 00:00:00 UTC
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Telsey Advisory Group Maintains Dillard`s Inc. - (DDS) Market Perform Recommendation
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DDS
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https://www.nasdaq.com/articles/telsey-advisory-group-maintains-dillards-inc.-dds-market-perform-recommendation
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Fintel reports that on August 11, 2023, Telsey Advisory Group maintained coverage of Dillard`s Inc. - (NYSE:DDS) with a Market Perform recommendation.
Analyst Price Forecast Suggests 33.11% Downside
As of August 2, 2023, the average one-year price target for Dillard`s Inc. - is 247.35. The forecasts range from a low of 161.60 to a high of $341.25. The average price target represents a decrease of 33.11% from its latest reported closing price of 369.78.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Dillard`s Inc. - is 6,688MM, a decrease of 3.73%. The projected annual non-GAAP EPS is 27.07.
Dillard`s Inc. - Declares $0.20 Dividend
On May 20, 2023 the company declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of June 30, 2023 received the payment on July 31, 2023. Previously, the company paid $0.20 per share.
At the current share price of $369.78 / share, the stock's dividend yield is 0.22%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.91%, the lowest has been 0.19%, and the highest has been 5.47%. The standard deviation of yields is 1.02 (n=236).
The current dividend yield is 0.68 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.32. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 25.33%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 516 funds or institutions reporting positions in Dillard`s Inc. -. This is a decrease of 29 owner(s) or 5.32% in the last quarter. Average portfolio weight of all funds dedicated to DDS is 0.24%, a decrease of 5.10%. Total shares owned by institutions decreased in the last three months by 5.68% to 9,576K shares.
The put/call ratio of DDS is 0.30, indicating a bullish outlook.
What are Other Shareholders Doing?
Newport Trust holds 5,007K shares representing 30.38% ownership of the company. In it's prior filing, the firm reported owning 5,092K shares, representing a decrease of 1.69%. The firm increased its portfolio allocation in DDS by 9.59% over the last quarter.
DFSVX - U.s. Small Cap Value Portfolio - Institutional Class holds 183K shares representing 1.11% ownership of the company. In it's prior filing, the firm reported owning 232K shares, representing a decrease of 26.78%. The firm decreased its portfolio allocation in DDS by 33.27% over the last quarter.
DFFVX - U.S. Targeted Value Portfolio - Institutional Class holds 162K shares representing 0.98% ownership of the company. In it's prior filing, the firm reported owning 164K shares, representing a decrease of 1.76%. The firm decreased its portfolio allocation in DDS by 17.24% over the last quarter.
Clientfirst Wealth Management holds 157K shares representing 0.95% ownership of the company. In it's prior filing, the firm reported owning 159K shares, representing a decrease of 1.40%. The firm decreased its portfolio allocation in DDS by 5.48% over the last quarter.
DFAT - Dimensional U.S. Targeted Value ETF holds 138K shares representing 0.84% ownership of the company. In it's prior filing, the firm reported owning 147K shares, representing a decrease of 6.47%. The firm decreased its portfolio allocation in DDS by 23.10% over the last quarter.
Dillard`s Background Information
(This description is provided by the company.)
Dillard's, Inc., is an upscale American department store chain with approximately 282 stores in 29 states and headquartered in Little Rock, Arkansas. Currently, the largest number of stores are located in Texas with 57 and Florida with 42.
Additional reading:
Dillard’s, Inc. Reports Second Quarter and Year-to-Date Results
Dillard’s, Inc. Announces New $500 Million Share Repurchase Program and Declares $0.20 Cash Dividend
Dillard’s, Inc. Reports First Quarter Results
Subsidiaries of Registrant.
Dillard’s, Inc. Reports Fourth Quarter and Fiscal Year Results
This story originally appeared on Fintel.
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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Fintel reports that on August 11, 2023, Telsey Advisory Group maintained coverage of Dillard`s Inc. - (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.24%, a decrease of 5.10%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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Fintel reports that on August 11, 2023, Telsey Advisory Group maintained coverage of Dillard`s Inc. - (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.24%, a decrease of 5.10%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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Fintel reports that on August 11, 2023, Telsey Advisory Group maintained coverage of Dillard`s Inc. - (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.24%, a decrease of 5.10%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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Fintel reports that on August 11, 2023, Telsey Advisory Group maintained coverage of Dillard`s Inc. - (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.24%, a decrease of 5.10%. The put/call ratio of DDS is 0.30, indicating a bullish outlook.
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55a162a6-b060-4c40-ab72-f682d07712de
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719151.0
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2023-08-11 00:00:00 UTC
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Dillard's (DDS) Q2 Earnings & Sales Top Estimates, Stock Gains
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DDS
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https://www.nasdaq.com/articles/dillards-dds-q2-earnings-sales-top-estimates-stock-gains
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Dillard's Inc. DDS posted second-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. This marked the company’s 10th straight quarter of a top and bottom-line beat. Results gained from better inventory management and strong consumer demand.
Adjusted earnings of $7.98 per share significantly surpassed the Zacks Consensus Estimate of $4.21. However, the bottom line declined 14.2% from the year-ago quarter's $9.30 per share.
Total revenues of $1,567.4 million decreased 1.3% from the prior-year quarter but beat the Zacks Consensus Estimate of $1,534 million.
Dillard’s shares rallied 10% yesterday, driven by the robust second-quarter fiscal 2023 performance. Shares of the Zacks Rank #3 (Hold) company have rallied 30.3% in the past three months compared with the industry's growth of 17.7%.
Image Source: Zacks Investment Research
Total retail sales (excluding CDI Contractors, LLC) fell 3% year over year to $1,499 million. Comparable store sales also declined 3% year over year. Retail sales were affected by the continued cautiousness of consumers in the first few weeks of the fiscal second quarter.
Our model has predicted comps decline of 5.7% for the fiscal second quarter. The improved performance compared to our estimate can be attributed to the fading of the cautious consumer shopping behavior in the latter part of the quarter.
In the quarter, the company witnessed robust sales in cosmetics, and home and furniture categories. On the flip side, ladies’ accessories and lingerie, and ladies’ apparel and shoes were among the underperforming categories.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote
The consolidated gross margin contracted 200 basis points (bps) year over year to 38.8% in the fiscal second quarter. The retail gross margin of 40.4% reflected a year-over-year decline of 110 bps, driven by a significant gross margin decline in the men’s apparel and accessories, and a moderate decline in the juniors’ and children’s apparel categories.
Meanwhile, the company witnessed robust gross margin growth in the home and furniture category. The ladies’ accessories and lingerie categories reflected a moderation in gross margin growth during the quarter.
Dillard's consolidated SG&A expenses (as a percentage of sales) expanded 100 bps to 26.3% from the prior-year quarter's 25.3%. In dollar terms, SG&A expenses (operating expenses) grew 2.8% to $412.6 million. The increase in operating expenses is mainly attributed to higher payroll and payroll-related expenses.
Our model had predicted SG&A expenses (as a percentage of sales) to expand 200 bps to 26.8% in the fiscal second quarter. In dollar terms, we expected SG&A expenses to increase 2.4% year over year to $410.9 million.
Financial Details
Dillard’s ended the quarter with cash and cash equivalents of $774.3 million, long-term debt of $321.4 million, and total shareholders' equity of $1,709.5 million. The company provided $397.9 million of net cash from operating activities.
Capital expenditure for fiscal 2023 is likely to be $140 million, suggesting growth from the year-ago figure of $120 million.
In the fiscal second quarter, the company repurchased 358,000 Class A common stock for $103.4 million, under its existing repurchase program. As of Jul 29, DDS had an authorization worth $458.1 million remaining under its share repurchase program announced in May 2023.
Store Update
As of Jul 29, 2023, DDS operated 274 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
Outlook
For fiscal 2023, Dillard’s expects depreciation and amortization of $180 million, whereas it reported $188 million in the prior year. The company expects a net interest income of $5 million, whereas it recorded expenses of $31 million in the prior year. DDS anticipates rentals of $22 million for fiscal 2023.
Stocks to Consider
Here are some better-ranked stocks that you may want to consider, namely, Boot Barn BOOT, The Gap Inc. GPS and American Eagle Outfitters AEO.
Boot Barn, a lifestyle retail chain, currently flaunts a Zacks Rank #1 (Strong Buy). The company’s expected EPS growth rate for three to five years is 6.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s current fiscal year’s revenues suggests growth of 7.6% from the year-ago reported figure.
Gap, a premier international specialty retailer, currently sports a Zacks Rank #1. GPS has a trailing four-quarter earnings surprise of 12%, on average.
The Zacks Consensus Estimate for Gap’s current financial year’s EPS suggests growth of 25% from the year-ago reported figure. GPS has an expected EPS growth rate of 12% for three to five years.
American Eagle, a specialty retailer of casual apparel, accessories and footwear for men and women, carries a Zacks Rank #2 (Buy) at present. The company’s expected EPS growth rate for three to five years is 9.6%.
The Zacks Consensus Estimate for American Eagle’s current fiscal year’s EPS suggests growth of 275% from the year-ago reported figures. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's Inc. DDS posted second-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. As of Jul 29, DDS had an authorization worth $458.1 million remaining under its share repurchase program announced in May 2023. Store Update As of Jul 29, 2023, DDS operated 274 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report The Gap, Inc. (GPS) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted second-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. As of Jul 29, DDS had an authorization worth $458.1 million remaining under its share repurchase program announced in May 2023.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report The Gap, Inc. (GPS) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted second-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. As of Jul 29, DDS had an authorization worth $458.1 million remaining under its share repurchase program announced in May 2023.
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Dillard's Inc. DDS posted second-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. As of Jul 29, DDS had an authorization worth $458.1 million remaining under its share repurchase program announced in May 2023. Store Update As of Jul 29, 2023, DDS operated 274 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
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feb7f1e0-b669-46ab-b0dd-8acc66c4b04f
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719152.0
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2023-08-11 00:00:00 UTC
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Company News for Aug 11, 2023
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DDS
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https://www.nasdaq.com/articles/company-news-for-aug-11-2023
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nan
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nan
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Shares of Dillard's, Inc. (DDS) jumped soared 10% after the company reported second-quarter 2023 earnings of $7.98 per share, beating the Zacks Consensus Estimate of $4.21 per share.
Manulife Financial Corporation’s (MFC) shares rose 1.4% after the company reported second-quarter 2023 core earnings of $0.62 per share, surpassing the Zacks Consensus Estimate of $0.60 per share.
Shares of Illumina, Inc. (ILMN) gained 0.3% after the company reported second-quarter adjusted earnings of $0.32 per share, outpacing the Zacks Consensus Estimate of $0.02 per share.
Genpact Limited’s (G) shares jumped 5.1% after the company reported second-quarter 2023 earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.69 per share.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Illumina, Inc. (ILMN) : Free Stock Analysis Report
Manulife Financial Corp (MFC) : Free Stock Analysis Report
Genpact Limited (G) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Shares of Dillard's, Inc. (DDS) jumped soared 10% after the company reported second-quarter 2023 earnings of $7.98 per share, beating the Zacks Consensus Estimate of $4.21 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Illumina, Inc. (ILMN) : Free Stock Analysis Report Manulife Financial Corp (MFC) : Free Stock Analysis Report Genpact Limited (G) : Free Stock Analysis Report To read this article on Zacks.com click here. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
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Shares of Dillard's, Inc. (DDS) jumped soared 10% after the company reported second-quarter 2023 earnings of $7.98 per share, beating the Zacks Consensus Estimate of $4.21 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Illumina, Inc. (ILMN) : Free Stock Analysis Report Manulife Financial Corp (MFC) : Free Stock Analysis Report Genpact Limited (G) : Free Stock Analysis Report To read this article on Zacks.com click here. Genpact Limited’s (G) shares jumped 5.1% after the company reported second-quarter 2023 earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.69 per share.
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Shares of Dillard's, Inc. (DDS) jumped soared 10% after the company reported second-quarter 2023 earnings of $7.98 per share, beating the Zacks Consensus Estimate of $4.21 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Illumina, Inc. (ILMN) : Free Stock Analysis Report Manulife Financial Corp (MFC) : Free Stock Analysis Report Genpact Limited (G) : Free Stock Analysis Report To read this article on Zacks.com click here. Genpact Limited’s (G) shares jumped 5.1% after the company reported second-quarter 2023 earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.69 per share.
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Shares of Dillard's, Inc. (DDS) jumped soared 10% after the company reported second-quarter 2023 earnings of $7.98 per share, beating the Zacks Consensus Estimate of $4.21 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Illumina, Inc. (ILMN) : Free Stock Analysis Report Manulife Financial Corp (MFC) : Free Stock Analysis Report Genpact Limited (G) : Free Stock Analysis Report To read this article on Zacks.com click here. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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9325be78-6492-445c-809e-82c1bc859466
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719153.0
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2023-08-10 00:00:00 UTC
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Dillard's Q2 Results Down; Stock Dips In Premarket
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DDS
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https://www.nasdaq.com/articles/dillards-q2-results-down-stock-dips-in-premarket
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that its second-quarter net income declined to $131.5 million from last year's $163.4 million.
Earnings per share were $7.98, down from $9.30 a year ago.
On average, three analysts polled by Thomson Reuters expected earnings of $4.66 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales were $1.567 billion, lower than last year's $1.589 billion. The Street was looking for sales of $1.55 billion.
Total retail sales, which excludes CDI, were $1.50 billion, down 3 percent from $1.55 billion a year ago.
Sales in comparable stores decreased 3 percent hurt by continuing consumer caution, particularly in the first few weeks of the second quarter.
In pre-market activity on the NYSE, Dillard's shares were trading at $321, down 4.51 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
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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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that its second-quarter net income declined to $131.5 million from last year's $163.4 million. On average, three analysts polled by Thomson Reuters expected earnings of $4.66 per share for the quarter. Sales in comparable stores decreased 3 percent hurt by continuing consumer caution, particularly in the first few weeks of the second quarter.
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that its second-quarter net income declined to $131.5 million from last year's $163.4 million. Earnings per share were $7.98, down from $9.30 a year ago. Net sales were $1.567 billion, lower than last year's $1.589 billion.
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that its second-quarter net income declined to $131.5 million from last year's $163.4 million. Net sales were $1.567 billion, lower than last year's $1.589 billion. Total retail sales, which excludes CDI, were $1.50 billion, down 3 percent from $1.55 billion a year ago.
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(RTTNews) - Luxury department store chain Dillard's, Inc. (DDS) reported Thursday that its second-quarter net income declined to $131.5 million from last year's $163.4 million. Earnings per share were $7.98, down from $9.30 a year ago. Net sales were $1.567 billion, lower than last year's $1.589 billion.
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169211c0-40a8-4361-91e8-70d152ea216a
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719154.0
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2023-08-03 00:00:00 UTC
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Factor Likely to Influence Dillard's (DDS) in Q2 Earnings
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DDS
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https://www.nasdaq.com/articles/factor-likely-to-influence-dillards-dds-in-q2-earnings
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nan
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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.53 billion indicates a 3.4% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $4.21 per share, indicating a 54.7% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
We expect the company’s fiscal second-quarter total revenues to decline 5.3% year over year to $1,504.2 million and earnings to plunge 57% to $3.99 per share.
In the last reported quarter, the company recorded an earnings surprise of 29.8%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 110.4%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Key Factors to Note
Dillard’s has been benefiting from better inventory management and consumer demand. The company has created a niche for itself through a stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service.
The company’s efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business has been a key driver. On the store front, it has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Strength in its activewear brands should have helped grab market share in the quarter under review.
Its e-commerce business is catching pace with strategies like the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal second-quarter performance to have gained from its focus on increasing productivity at existing stores, improved omni-channel platform and enhanced domestic operations.
However, stiff competition and inflation are likely to have been concerning. The company has been witnessing a decline in customer activity due to lower incomes. Also, weakness in the ladies’ accessories and lingerie, as well as children’s apparel are likely to have dented the fiscal second-quarter performance.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dillard’s currently has a Zacks Rank #3 and an Earnings ESP of -5.23%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that have the right combination of elements to post an earnings beat:
Arhaus ARHS has an Earnings ESP of +7.69% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ARHS is likely to register year-over-year top-line growth when it reports second-quarter fiscal 2023, while its bottom line is expected to decline. The Zacks Consensus Estimate for its quarterly revenues is pegged at $325.7 million, suggesting 6.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ARHS’ fiscal second-quarter earnings is pegged at 26 cents, suggesting a 7.1% decline from the year-ago quarter’s reported figure. The consensus estimate for earnings has been unchanged in the past 30 days. ARHS has delivered an earnings beat of 82.4%, on average, in the trailing four quarters.
Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. ABG is likely to register top and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.7 billion, suggesting a 6.4% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. The consensus estimate for earnings has declined 2% in the past 30 days. ABG has delivered an earnings beat of 7.4%, on average, in the trailing four quarters.
Costco COST has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company will likely register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly earnings per share of $4.73 suggests a rise of 12.6% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.92 billion, indicating an increase of 9.5% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Arhaus, Inc. (ARHS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4d88649f-97cb-48d8-8ad3-f7367fa5009b
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719155.0
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2023-07-23 00:00:00 UTC
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The 3 Best Short-Term Stocks To Buy Now
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DDS
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https://www.nasdaq.com/articles/the-3-best-short-term-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Looking at true investing legends like Warren Buffett, you’ll notice that they don’t speculate wildly, meaning that you probably won’t find them acquiring the best short-term stocks to buy. However, it’s not much fun to be loaded but not be young enough to enjoy the money. With these ideas for top short-term investments, it’s all about maximizing returns while minimizing the time expenditure.
If you think about it, time is our most valuable commodity because we can’t put a price on it. You can buy gold and real estate and Lambos but you can never buy time. So, if you can acquire the returns you’re seeking while dispensing less of your precious time on this planet, the better.
Of course, high-return short-term stocks command high risk – that’s the nature of the beast. Still, not risking anything at all can also lead to serious regrets. On that note, below are some fast-return stocks for speculators to consider.
Dillard’s (DDS)
Source: PX Media / Shutterstock
To be clear, I’m not at all a fan of investing in Dillard’s (NYSE:DDS) as a long-haul investment. However, if you’re seeking top short-term investments, DDS could be intriguing. Known for peaks and valleys throughout the trailing one-year period, since the Jan. opener, DDS finds itself down a bit more than 1%. However, this framework could be a discounted opportunity.
Fundamentally, recent economic data shows that inflation is trending down. However, the Federal Reserve must consider the bigger picture, as I kept repeating like a broken clock in an interview with CGTN America. Ultimately, this might mean that the Fed won’t be deterred from raising rates just because of one or two reports. Right now, though, Dillard’s may be one of the best short-term stocks to buy.
Here’s my reasoning. At the present juncture, consumers are still opening their wallets, as evidenced by record household debt. Simultaneously, consumers get to enjoy lower prices without their consequences, namely mass-scale job losses. However, those losses will likely come if the Fed goes hawkish. For now, DDS is one of the possible fast-return stocks.
Warby Parker (WRBY)
Source: Epic Cure / Shutterstock
A popular retailer of prescription glasses, contact lenses, and sunglasses, Warby Parker (NYSE:WRBY) in my view goes both ways. Previously, I’ve spoken about WRBY’s speculative upside appeal because of global myopia trends. As I consistently mentioned, scientific reports indicate that global myopia prevalence will hit more than 50% by 2050. Cynically, that’s a massive addressable market. But does it classify among high-return short-term stocks?
I like to think so and not just because I ran out of ideas for this list (hey, I’m keeping it real). Previously, WRBY attracted significant speculative short-squeeze interest. Now, much of the contrarian euphoria faded. Nevertheless, WRBY still features a short interest of 12.91% of its float. As well, its short-interest ratio stands at 8.65 days to cover.
Further, Fintel’s proprietary Short Squeeze Score indicates that WRBY hit 75.61 out of 100. This indicates a higher-than-average risk of a short squeeze materializing. Therefore, it could be one of the best short-term stocks to buy. And in my humble opinion, you can hold onto Warby because the broader fundamentals make plenty of sense.
Blade Air Mobility (BLDE)
Source: shutterstock.com/CC7
Another idea that can be one of the best short-term stocks or a speculative wager for the long haul, Blade Air Mobility (NASDAQ:BLDE) deserves consideration. Specializing in electric vertical takeoff and landing (eVTOL) aircraft, Blade offers a new path forward in air mobility. What makes eVTOL especially attractive from a societal perspective is the diminished intrusive profile.
For one thing, eVTOL runs on electricity so you’re eliminating the emissions associated with traditional aviation-related fuels. Also, eVTOLs feature a quieter profile than helicopters. Given the cacophony of the urban sprawl, replacing choppers with these electric-powered aircraft would be a welcome change. Plus, over time, economies of scale might make eVTOLs financially feasible for many customers. Therefore, BLDE makes for one of the short-term stocks to buy.
Financially, the company could use some work, let’s be clear. However, Blade enjoys a solid balance sheet backed by a cash-to-debt ratio of 7.13X. It also features a three-year revenue growth rate (per-share basis) of 18.5%. Lastly, Oppenheimer’s Jason Helfstein pegs BLDE a buy with a $6 price target, implying 49% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post The 3 Best Short-Term Stocks To Buy Now appeared first on InvestorPlace.
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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Dillard’s (DDS) Source: PX Media / Shutterstock To be clear, I’m not at all a fan of investing in Dillard’s (NYSE:DDS) as a long-haul investment. However, if you’re seeking top short-term investments, DDS could be intriguing. Known for peaks and valleys throughout the trailing one-year period, since the Jan. opener, DDS finds itself down a bit more than 1%.
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However, if you’re seeking top short-term investments, DDS could be intriguing. Dillard’s (DDS) Source: PX Media / Shutterstock To be clear, I’m not at all a fan of investing in Dillard’s (NYSE:DDS) as a long-haul investment. Known for peaks and valleys throughout the trailing one-year period, since the Jan. opener, DDS finds itself down a bit more than 1%.
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Dillard’s (DDS) Source: PX Media / Shutterstock To be clear, I’m not at all a fan of investing in Dillard’s (NYSE:DDS) as a long-haul investment. However, if you’re seeking top short-term investments, DDS could be intriguing. Known for peaks and valleys throughout the trailing one-year period, since the Jan. opener, DDS finds itself down a bit more than 1%.
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Dillard’s (DDS) Source: PX Media / Shutterstock To be clear, I’m not at all a fan of investing in Dillard’s (NYSE:DDS) as a long-haul investment. However, if you’re seeking top short-term investments, DDS could be intriguing. Known for peaks and valleys throughout the trailing one-year period, since the Jan. opener, DDS finds itself down a bit more than 1%.
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03191c19-c458-4824-a3b3-94bbd247d6dc
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719156.0
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2023-07-21 00:00:00 UTC
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Scoop Up These 4 Top-Ranked Liquid Stocks for Strong Returns
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DDS
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https://www.nasdaq.com/articles/scoop-up-these-4-top-ranked-liquid-stocks-for-strong-returns
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nan
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nan
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Investors looking for high returns will likely benefit from adding stocks with sound liquidity levels, as it encourages business growth.
Liquidity measures a company’s capability to meet its short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
Investors should be alert before considering such stocks. While a high liquidity level may imply that the company is clearing its dues faster than its peers, it may also suggest that it cannot utilize assets competently.
Hence, one may consider efficiency and liquidity to identify potential winners.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short- and long-term debt obligations. A current ratio — also known as the working capital ratio — below 1 indicates that the company has more liabilities than assets. However, a high current ratio does not always suggest that the company is in good financial shape. It may also suggest that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — also called the ‘acid-test ratio’ or ‘quick assets ratio’ — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding the current assets relative to current liabilities. Like the current ratio, a quick ratio of more than 1 is desirable.
Cash Ratio: This is the most conservative ratio among the three, considering cash and cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet current debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization. A ratio greater than 1 is always desirable but may not always represent a company’s financial condition.
Screening Parameters
To pick the best of the lot, we have added asset utilization — a widely-used measure of a company’s efficiency — as one of the screening criteria. Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than their respective industries can be considered efficient.
To ensure that these liquid and efficient stocks have solid growth potential, we have added our proprietary Growth Style Score to the screen.
Current Ratio, Quick Ratio and Cash Ratio between 1 and 3 (While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.)
Asset utilization greater than the industry average (Higher asset utilization than the industry average indicates a company’s efficiency.)
Zacks Rank equal to #1 (Only Strong Buy-rated stocks can get through). You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Score less than or equal to B (Back-tested results show that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, handily beat other stocks.)
These criteria have narrowed the universe of more than 7,700 stocks to only eight.
Here are four of the eight stocks that qualified for the screen:
American Public Education, Inc APEI is an online and campus-based post-secondary education provider. The company serves approximately 108,400 students through three subsidiary institutions — American Public University System (APUS), Rasmussen University (RU) and Hondros College of Nursing (HCN). American Public is benefiting from solid contributions from the APUS and HCN segments. For second-quarter 2023, the company expects APUS total net course registrations to grow 2-6% year over year and HCN’s total enrolment to increase 22% from the prior year’s figure. The Zacks Consensus Estimate for APEI’s 2023 bottom line is pegged at loss of $1.02 per share compared with a loss per share of $6.08 reported in the previous year. The company has a Growth Score of B.
Oceaneering International OII is a leading provider of integrated technology solutions and is active at all the phases of the offshore oilfield lifecycle. Oceaneering’s geographically diversified asset base spread across the United States and rest of the world and its revenues — evenly split between international and domestic operations — lowers its risk profile. The outlook for the company’s ‘Subsea Robotics’ unit is particularly impressive. The company’s strong relationships with high-quality customers provide revenue visibility and business certainty. The Zacks Consensus Estimate for 2023 earnings is pegged at $1.12 per share, up 6.7% in the past 60 days. OII has a Growth Score of B.
Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. As of Apr 29, Dillard's operated 247 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com. The company’s revenue performance is gaining from better inventory management and consumer demand. The company witnessed robust sales in cosmetics and ladies’ apparel in the last reported quarter. Also, share repurchases and dividend payments bode well. The Zacks Consensus Estimate for Dillard's fiscal 2023 earnings has been revised upward to $34.69 per share from $33.78 in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 110.4%, on average.
DoorDash DASH offers a logistics and technology platform to local businesses. The platform connects merchants, consumers and dashers. It completed its Initial Public Offering (IPO) in December 2020. DoorDash is expanding its global footprint, powered by Wolt and Bbot acquisitions. The Wolt acquisition is helping DoorDash spread its operations in 23 countries and address a larger customer base, which is expected to drive top-line growth. An expanding partner base, including Albertson and Grocery Outlet, will help DASH provide express grocery delivery to consumers. The Zacks Consensus Estimate for its 2023 bottom line is pegged at loss of $1.73 per share, suggesting an improvement from a loss of $2.59 reported in the previous year. DASH has a Growth Score of B.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
American Public Education, Inc. (APEI) : Free Stock Analysis Report
Oceaneering International, Inc. (OII) : Free Stock Analysis Report
DoorDash, Inc. (DASH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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OII has a Growth Score of B. Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. The company has a Growth Score of B. Oceaneering International OII is a leading provider of integrated technology solutions and is active at all the phases of the offshore oilfield lifecycle.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. OII has a Growth Score of B. Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Measures to Identify Liquid Stocks Current Ratio: It measures current assets relative to current liabilities.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. OII has a Growth Score of B. Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Quick Ratio: Unlike the current ratio, the quick ratio — also called the ‘acid-test ratio’ or ‘quick assets ratio’ — indicates a company’s ability to pay short-term obligations.
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OII has a Growth Score of B. Dillard's DDS is a large departmental store chain featuring fashion apparel and home furnishings. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. To ensure that these liquid and efficient stocks have solid growth potential, we have added our proprietary Growth Style Score to the screen.
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719157.0
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2023-07-19 00:00:00 UTC
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Top Research Reports for Microsoft, Salesforce & United Parcel Service
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DDS
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https://www.nasdaq.com/articles/top-research-reports-for-microsoft-salesforce-united-parcel-service
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Wednesday, July 19, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), Salesforce, Inc. (CRM) and United Parcel Service, Inc. (UPS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Microsoft shares have outperformed the Zacks Computer - Software industry over the past two years (+28.7% vs. +17.9%) on the back of strong momentum from the company’s Intelligent Cloud and Productivity and Business Processes.
The Zacks analyst sees continued momentum in the small and medium businesses and frontline worker offerings to drive sustainable the top-line growth.
However, decreasing revenues in More Personal Computing and gaming have been a headwind. Increasing spend on Azure enhancements amid stiff competition in the cloud space also remains a concern
(You can read the full research report on Microsoft here >>>)
Salesforce shares have outperformed the Zacks Computer - Software industry over the past six months (+50.5% vs. +43.9%, reflecting a robust demand environment as customers are undergoing a major digital transformation.
Rapid adoption of cloud-based solutions, continued deal wins in international markets, and acquisition of Slack have positioned the company as a market leader.
Yet, stiff competition, unfavorable currency fluctuations and a challenging macroeconomic environment remain major concerns.
(You can read the full research report on Salesforce here >>>)
Shares of United Parcel Service have underperformed the Zacks Transportation – Air Freight and Cargo industry over the six months (+3.6% vs. +8.9%). The Zacks analyst believes that the company’s weak performance in consumer sales for both the domestic and international package segments have been tantamount for it lagging the market.
However, newly introduced efficiency enhancement programs and a strong and free cash flow bode well for UPS in the future. An effort to reward shareholders by way of dividends and buybacks are also likely to raise its stock going forward.
(You can read the full research report on United Parcel Service here >>>)
Other noteworthy reports we are featuring today UnitedHealth Group Incorporated (UNH), Roper Technologies, Inc. (ROP) and Alnylam Pharmaceuticals, Inc. (ALNY).
Sheraz Mian
Director of Research
Today's Must Read
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Dividends & Buybacks Boost UPS' Prospects, High Costs Hurt
Featured Reports
Antero's (AR) Strategic Acreage in Appalachian Basin Aids
The Zacks analyst likes Antero because of its strong position in the prolific gas-rich Appalachian Basin. However, rising lease operating expense is a concern.
Application Software Unit to Aid Roper (ROP) Amid Cost Woes
The Zacks analyst is encouraged by growth in the Application Software unit due to strength in Deltek, Vertafore, Aderant and CliniSys businesses. However, escalating cost of sales raise concerns.
Viasat (VSAT) Set to Ride on the Strategic Buyout of Inmarsat
Per the Zacks analyst, the buyout of Inmarsat is likely to strengthen Viasat's portfolio, diversify service offerings and accelerate commercial expansion worldwide.
Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)
Per the Zacks analyst, strategic initiatives enhance the company's capabilities, which in turn, boost the top line. Also, robust cash flows enable investment in business.
Robust Storage, Data Center Demand Aids Iron Mountain (IRM)
Per the Zacks analyst, Iron Mountain is poised to benefit from the solid demand for its storage and records management business, its focus on data center business and a solid balance-sheet position.
QuidelOrtho (QDEL) Continues to Gain From Product Innovation
The Zacks analyst is upbeat about QuidelOrtho's strong product portfolio despite its operation in a highly stiff competitive space.
Dillard's (DDS) Merchandising Efforts to Bolster Growth
Per the Zacks analyst, Dillard's is benefiting from its efforts to enhance brand relations, focus on in-trend categories and store remodels. Its new activewear brand should help grab market share.
New Upgrades
Agios' (AGIO) Pyrukynd Label Expansion Studies Encouraging
Following FDA approval in PK deficiency, Pyrukynd is the first approved drug in Agios' portfolio. The Zacks Analyst is encouraged by the company's progress on Pyrukynd label extension studies.
Amvuttra & Givlaari Boost Alnylam (ALNY), Pipeline Holds Promise
Per the Zacks Analyst, Amvuttra and Givlaari sales are expected to continue to boost Alnylam's sales. Its existing collaboration agreements to develop pipeline candidates are also progressing well.
American Public's (APEI) APUS & HCN Enrollment Impressive
Per the Zacks analyst, American Public benefits from solid contributions from the APUS and HCN segments driven by higher enrollment.
New Downgrades
Third-Party Assets Use, Competition Ail CNX Resources (CNX)
Per the Zacks analyst, CNX Resources natural gas business can get impacted if facilities owned by third-parties fail to perform as expected. Intensely competitive natural gas business is a headwind.
Stiff Competition and Regulations Ail Devon Energy (DVN)
Per the Zacks analyst, Devon results likely to be impacted by competition it faces to secure drilling rights and acquire properties. New regulations can increase cost and lower profitability.
High SG&A Costs Likely to Weigh on Tapestry's (TPR) Margins
Per the Zacks analyst, rise in SG&A expenses may hurt Tapestry's margins in the quarters ahead. Adjusted SG&A expenses rose 5% year over year to $872 million during the third quarter of fiscal 2023.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Iron Mountain Incorporated (IRM) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
American Public Education, Inc. (APEI) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
Viasat Inc. (VSAT) : Free Stock Analysis Report
QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report
Agios Pharmaceuticals, Inc. (AGIO) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS) Merchandising Efforts to Bolster Growth Per the Zacks analyst, Dillard's is benefiting from its efforts to enhance brand relations, focus on in-trend categories and store remodels. Click to get this free report Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Devon Energy Corporation (DVN) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Iron Mountain Incorporated (IRM) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Roper Technologies, Inc. (ROP) : Free Stock Analysis Report CNX Resources Corporation. Microsoft shares have outperformed the Zacks Computer - Software industry over the past two years (+28.7% vs. +17.9%) on the back of strong momentum from the company’s Intelligent Cloud and Productivity and Business Processes.
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Click to get this free report Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Devon Energy Corporation (DVN) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Iron Mountain Incorporated (IRM) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Roper Technologies, Inc. (ROP) : Free Stock Analysis Report CNX Resources Corporation. Dillard's (DDS) Merchandising Efforts to Bolster Growth Per the Zacks analyst, Dillard's is benefiting from its efforts to enhance brand relations, focus on in-trend categories and store remodels. Sheraz Mian Director of Research Today's Must Read Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) Digital Transformation and Acquisitions Aid Salesforce (CRM) Dividends & Buybacks Boost UPS' Prospects, High Costs Hurt Featured Reports Antero's (AR) Strategic Acreage in Appalachian Basin Aids The Zacks analyst likes Antero because of its strong position in the prolific gas-rich Appalachian Basin.
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Click to get this free report Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Devon Energy Corporation (DVN) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Iron Mountain Incorporated (IRM) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Roper Technologies, Inc. (ROP) : Free Stock Analysis Report CNX Resources Corporation. Dillard's (DDS) Merchandising Efforts to Bolster Growth Per the Zacks analyst, Dillard's is benefiting from its efforts to enhance brand relations, focus on in-trend categories and store remodels. Sheraz Mian Director of Research Today's Must Read Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) Digital Transformation and Acquisitions Aid Salesforce (CRM) Dividends & Buybacks Boost UPS' Prospects, High Costs Hurt Featured Reports Antero's (AR) Strategic Acreage in Appalachian Basin Aids The Zacks analyst likes Antero because of its strong position in the prolific gas-rich Appalachian Basin.
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Dillard's (DDS) Merchandising Efforts to Bolster Growth Per the Zacks analyst, Dillard's is benefiting from its efforts to enhance brand relations, focus on in-trend categories and store remodels. Click to get this free report Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Devon Energy Corporation (DVN) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Iron Mountain Incorporated (IRM) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Roper Technologies, Inc. (ROP) : Free Stock Analysis Report CNX Resources Corporation. Microsoft shares have outperformed the Zacks Computer - Software industry over the past two years (+28.7% vs. +17.9%) on the back of strong momentum from the company’s Intelligent Cloud and Productivity and Business Processes.
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2023-07-16 00:00:00 UTC
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This Stock Is a 132-Bagger Since 2009, With No Revenue Growth. Here's How.
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DDS
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https://www.nasdaq.com/articles/this-stock-is-a-132-bagger-since-2009-with-no-revenue-growth.-heres-how.
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Most investors avoid department store stocks like the plague. Department stores have been losing market share to discounters, specialty retailers, and e-commerce companies for decades. Just in the past five years, many prominent department store chains have filed for bankruptcy or gone out of business entirely, including Sears, J.C. Penney, Neiman Marcus, Lord & Taylor, and Barneys New York.
Yet one department store company has delivered market-crushing returns in recent years: Dillard's (NYSE: DDS). Since bottoming out during the Great Recession, the stock has been a 132-bagger on a total return basis. Remarkably, Dillard's has delivered these incredible returns without growing its top line at all.
Doing the same with less
On March 5, 2009 -- the same day that Dillard's stock bottomed out -- the company reported an adjusted net loss of over $100 million for fiscal 2008. Merchandise sales totaled $6.74 billion for the year: down by 6% from fiscal 2007.
A few months ago, Dillard's reported that merchandise sales reached $6.7 billion in fiscal 2022, roughly in line with 2008 levels. But whereas Dillard's reported a big loss in 2008 -- and was barely profitable in 2007, despite posting higher sales -- the company generated an incredible $845 million adjusted net profit last year.
Obviously, favorable macroeconomic conditions last year compared to the weak economy of 2008 supported the sharp improvement in profitability. But two "self-help" initiatives arguably played an even bigger role.
Image source: Author.
First, Dillard's has become much more careful about inventory management. The retailer entered fiscal 2008 with $1.78 billion of inventory, but began fiscal 2022 with just $1.08 billion of inventory: a 39% reduction. In 2008, massive clearance markdowns to move slow-selling merchandise pushed gross margin below 30%. By contrast, gross margin has exceeded 40% for each of the past two years, helped by Dillard's lean inventory management.
Second, Dillard's has aggressively cut costs. Indeed, it has been willing to leave some revenue on the table to keep costs down. For example, several years ago, it reduced its store operating hours. Rather than being open from 10 a.m. until 9 p.m., the stores are now open from 11 a.m. to 8 p.m. That has reduced labor costs and complexity, as most employees now have a full-day shift. As a result, selling, general, and administrative expenses totaled $1.67 billion last year: down from $1.93 billion in fiscal 2008.
Returning cash to shareholders
Dillard's profitability improvement didn't occur steadily over time. The company significantly improved its margins in the first few years after the Great Recession, but then it experienced a period of margin compression and falling earnings beginning around 2015. Profitability then surged to new highs beginning in 2021.
Due to this earnings volatility, Dillard's stock has frequently traded at a depressed valuation relative to its earnings and cash flow. Management has capitalized on the volatile share price through an aggressive share repurchase program. Dillard's has reduced its share count by 78% since early 2009, giving EPS (and the share price) a big boost.
Dillard's Total Return, Shares Outstanding, and Operating Income, 2009 to present: data by YCharts.
And while Dillard's regular dividend is very modest, the company has recently begun to return some excess cash to shareholders through special dividends. The company paid special dividends of $15 per share in late 2021 and again in late 2022, adding to shareholders' total returns.
Multiple paths to stock market success
Companies with consistently strong revenue growth often deliver big gains for shareholders. But those stocks typically trade at a premium, and any slowdown in growth can lead to steep share-price declines.
Dillard's performance since 2009 shows that companies with margin expansion potential can also offer phenomenal upside, even without revenue growth. That's particularly true when the market remains skeptical of the turnaround for a long time, as it allows the company to rapidly reduce its share count to boost future EPS growth.
Going forward, Dillard's may struggle to continue beating the market. However, investors who can find the next company with significant margin expansion potential and a beaten-down share price could earn spectacular returns.
10 stocks we like better than Dillard's
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Dillard's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 10, 2023
Adam Levine-Weinberg has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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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Yet one department store company has delivered market-crushing returns in recent years: Dillard's (NYSE: DDS). Just in the past five years, many prominent department store chains have filed for bankruptcy or gone out of business entirely, including Sears, J.C. Penney, Neiman Marcus, Lord & Taylor, and Barneys New York. Multiple paths to stock market success Companies with consistently strong revenue growth often deliver big gains for shareholders.
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Yet one department store company has delivered market-crushing returns in recent years: Dillard's (NYSE: DDS). Doing the same with less On March 5, 2009 -- the same day that Dillard's stock bottomed out -- the company reported an adjusted net loss of over $100 million for fiscal 2008. However, investors who can find the next company with significant margin expansion potential and a beaten-down share price could earn spectacular returns.
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Yet one department store company has delivered market-crushing returns in recent years: Dillard's (NYSE: DDS). But whereas Dillard's reported a big loss in 2008 -- and was barely profitable in 2007, despite posting higher sales -- the company generated an incredible $845 million adjusted net profit last year. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Adam Levine-Weinberg has no position in any of the stocks mentioned.
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Yet one department store company has delivered market-crushing returns in recent years: Dillard's (NYSE: DDS). But whereas Dillard's reported a big loss in 2008 -- and was barely profitable in 2007, despite posting higher sales -- the company generated an incredible $845 million adjusted net profit last year. However, investors who can find the next company with significant margin expansion potential and a beaten-down share price could earn spectacular returns.
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2023-07-15 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 7/15/2023
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-7-15-2023
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Kenneth Fisher changed from 90% to 100% 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 operates through two segments: the operation of retail department stores and a general contracting construction company. It operates approximately 277 Dillard's stores, including 28 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. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), whose business includes constructing and remodeling stores for the Company. The Company's merchandise selections include its lines of exclusive brand merchandise, such as Antonio Melani, Gianni Bini, GB, Roundtree & Yorke, and Daniel Cremieux. The Company's retail stores are located primarily in shopping malls and open-air centers throughout 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.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
Detailed Analysis of DILLARD'S INC
DDS Guru Analysis
DDS Fundamental Analysis
LIMONEIRA CO (LMNR) is a small-cap growth stock in the Crops industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% 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: Limoneira Company is primarily an agribusiness company. The Company is engaged primarily in growing citrus and avocados, picking, and hauling citrus, and packing, marketing, and selling citrus. The Company has three business divisions, such as agribusiness, rental operations, and real estate development. The agribusiness division is comprised of four segments: fresh lemons, lemon packing, avocados, and other agribusiness, which includes oranges, specialty citrus and other crops. The agribusiness division includes its core operations of farming, harvesting, lemon packing and lemon sales operations. The rental operations division includes its residential and commercial rentals, leased land operations and organic recycling. The real estate development division includes its investments in real estate development projects. It markets and sells citrus directly to food service, wholesale, and retail customers throughout the United States, Canada, Asia, Europe, and other international markets.
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.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of LIMONEIRA CO
LMNR Guru Analysis
LMNR Fundamental Analysis
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice 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.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis LIMONEIRA CO (LMNR) is a small-cap growth stock in the Crops industry. The Company's retail stores are located primarily in shopping malls and open-air centers throughout the Southwest, Southeast and Midwest regions of the United States.
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Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis LIMONEIRA CO (LMNR) is a small-cap growth stock in the Crops industry. DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), whose business includes constructing and remodeling stores for the Company.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis LIMONEIRA CO (LMNR) is a small-cap growth stock in the Crops industry. The Company operates through two segments: the operation of retail department stores and a general contracting construction company.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis LIMONEIRA CO (LMNR) is a small-cap growth stock in the Crops industry. The Company operates through two segments: the operation of retail department stores and a general contracting construction company.
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2023-07-10 00:00:00 UTC
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Zacks.com featured highlights include Dillard's, Suzano, Atkore, Nexstar Media Group and AbbVie
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-dillards-suzano-atkore-nexstar-media-group-and
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For Immediate Release
Chicago, IL – July 10, 2023 – Stocks in this week’s article are Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV.
Buy 5 High ROE Stocks as Market Rally Skids on New Jobs Data
After a spate of solid performances recently, the U.S. equity market witnessed a sudden downtrend in the middle of a holiday-shortened week, courtesy investors' broad-based concerns regarding the state of the overall economy and the trajectory of interest rate hikes. The decline was largely triggered by better-than-expected jobs data from payroll processing firm ADP, which fueled fears that the Federal Reserve will likely resume its aggressive rate hike regime. Although the ADP data is often considered unreliable and more volatile than other employment data, it has caused quite a stir ahead of the official June payroll report due today.
The equity market rally was primarily driven by the Fed's decision to hit a pause button for the rate hike program owing to a slowdown in inflation and maintain a benchmark interest rate in the range of 5-5.25%. However, the minutes from the Jun 13-14 Fed meeting revealed that more rate hikes are in the cards to bring inflation close to the targeted 2% level.
The latest ADP jobs report seemed to incite these rate hike fears with private sector jobs increasing by 497,000 in June, significantly higher than broad-based expectations of a 220,000 rise. The more than two-fold increase has ratcheted up the fear factor that dragged the shares down. The focus has now shifted to the Fed's Jul 25-26 policy meeting, which is likely to be another potential market catalyst.
As investors employ a wait-and-see approach in a classic example of "backing and filling" in the market, they can benefit from "cash cow" stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Dillard's, Inc., Suzano S.A., Atkore Inc., Nexstar Media Group, Inc. and AbbVie Inc. are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 11 stocks that qualified the screen:
Dillard's: Founded in 1938, Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. Its merchandise mix consists of both branded and private-label items. The company's strategy is to offer more fashion-forward and trendy products to attract customers.
Dillard's is benefiting from continued momentum in consumer demand and better inventory management. The company delivered a trailing four-quarter earnings surprise of 110.4%, on average. DDS carries a Zacks Rank #2. It has a VGM Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Suzano: Headquartered in Salvador, Brazil, Suzano produces and sells eucalyptus pulp and paper products. With more than 90 years of experience, this vertically integrated firm is one of the largest producers of paper and graphic products in South America.
Suzano has a long-term earnings growth expectation of 6.9% and delivered a trailing four-quarter earnings surprise of 54.8%, on average. It has a VGM Score of B. It sports a Zacks Rank #1.
Atkore: Headquartered in Harvey, IL, Atkore offers conduits, cables and installation accessories in the United States and internationally. With a network of manufacturing and distribution facilities worldwide, Atkore is a leading provider of electrical, safety and infrastructure solutions.
Atkore carries a Zacks Rank #2. It delivered a trailing four-quarter earnings surprise of 16.3%, on average. It has a VGM Score of A.
Nexstar Media: Headquartered in Irving, TX, Nexstar Media is a leading diversified media firm that produces and distributes engaging local and national news, sports and entertainment content across television, streaming and digital platforms. It also offers premium multiplatform and video-on-demand advertising opportunities at scale for businesses and brands seeking to leverage its strong client base.
The company has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 21.4%, on average. It has a VGM Score of B. Nexstar Media sports a Zacks Rank #1.
AbbVie: North Chicago, IL-based AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie's portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe and the United States.
The company has a long-term earnings growth expectation of 5% and delivered a trailing four-quarter earnings surprise of 1.8%, on average. AbbVie carries a Zacks Rank #2. It has a VGM Score of B.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2118019/buy-5-high-roe-stocks-as-market-rally-skids-on-adp-jobs-data
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Atkore Inc. (ATKR) : Free Stock Analysis Report
Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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For Immediate Release Chicago, IL – July 10, 2023 – Stocks in this week’s article are Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A.
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For Immediate Release Chicago, IL – July 10, 2023 – Stocks in this week’s article are Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A. DDS carries a Zacks Rank #2.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A. For Immediate Release Chicago, IL – July 10, 2023 – Stocks in this week’s article are Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV. DDS carries a Zacks Rank #2.
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For Immediate Release Chicago, IL – July 10, 2023 – Stocks in this week’s article are Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A.
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7ead78a9-3871-486f-ae67-ed879fce6511
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719161.0
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2023-07-07 00:00:00 UTC
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Dillard's (DDS) Upgraded to Buy: Here's Why
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DDS
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https://www.nasdaq.com/articles/dillards-dds-upgraded-to-buy%3A-heres-why
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Dillard's (DDS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Dillard's is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Dillard's, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Dillard's
This department store operator is expected to earn $34.69 per share for the fiscal year ending January 2024, which represents a year-over-year change of -28%.
Analysts have been steadily raising their estimates for Dillard's. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.3%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Dillard's to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
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Dillard's (DDS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock.
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Dillard's (DDS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock.
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Dillard's (DDS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
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ef892778-7fa8-464e-a773-7b9b0baa6fba
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719162.0
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2023-07-07 00:00:00 UTC
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Buy 5 High ROE Stocks as Market Rally Skids on ADP Jobs Data
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DDS
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https://www.nasdaq.com/articles/buy-5-high-roe-stocks-as-market-rally-skids-on-adp-jobs-data
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After a spate of solid performances recently, the U.S. equity market witnessed a sudden downtrend in the middle of a holiday-shortened week, courtesy investors’ broad-based concerns regarding the state of the overall economy and the trajectory of interest rate hikes. The decline was largely triggered by better-than-expected jobs data from payroll processing firm ADP, which fueled fears that the Federal Reserve will likely resume its aggressive rate hike regime. Although the ADP data is often considered unreliable and more volatile than other employment data, it has caused quite a stir ahead of the official June payroll report due today.
The equity market rally was primarily driven by the Fed’s decision to hit a pause button for the rate hike program owing to a slowdown in inflation and maintain a benchmark interest rate in the range of 5-5.25%. However, the minutes from the Jun 13-14 Fed meeting revealed that more rate hikes are in the cards to bring inflation close to the targeted 2% level.
The latest ADP jobs report seemed to incite these rate hike fears with private sector jobs increasing by 497,000 in June, significantly higher than broad-based expectations of a 220,000 rise. The more than two-fold increase has ratcheted up the fear factor that dragged the shares down. The focus has now shifted to the Fed’s Jul 25-26 policy meeting, which is likely to be another potential market catalyst.
As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders’ Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.
Screening Parameters
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow lesser than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of asset, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 11 stocks that qualified the screen:
Dillard's: Founded in 1938, Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. Its merchandise mix consists of both branded and private-label items. The company’s strategy is to offer more fashion-forward and trendy products to attract customers.
Dillard’s is benefiting from continued momentum in consumer demand and better inventory management. The company delivered a trailing four-quarter earnings surprise of 110.4%, on average. DDS carries a Zacks Rank #2. It has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Suzano: Headquartered in Salvador, Brazil, Suzano produces and sells eucalyptus pulp and paper products. With more than 90 years of experience, this vertically integrated firm is one of the largest producers of paper and graphic products in South America.
Suzano has a long-term earnings growth expectation of 6.9% and delivered a trailing four-quarter earnings surprise of 54.8%, on average. It has a VGM Score of B. It sports a Zacks Rank #1.
Atkore: Headquartered in Harvey, IL, Atkore offers conduits, cables and installation accessories in the United States and internationally. With a network of manufacturing and distribution facilities worldwide, Atkore is a leading provider of electrical, safety and infrastructure solutions.
Atkore carries a Zacks Rank #2. It delivered a trailing four-quarter earnings surprise of 16.3%, on average. It has a VGM Score of A.
Nexstar Media: Headquartered in Irving, TX, Nexstar Media is a leading diversified media firm that produces and distributes engaging local and national news, sports and entertainment content across television, streaming and digital platforms. It also offers premium multiplatform and video-on-demand advertising opportunities at scale for businesses and brands seeking to leverage its strong client base.
The company has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 21.4%, on average. It has a VGM Score of B. Nexstar Media sports a Zacks Rank #1.
AbbVie: North Chicago, IL-based AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe and the United States.
The company has a long-term earnings growth expectation of 5% and delivered a trailing four-quarter earnings surprise of 1.8%, on average. AbbVie carries a Zacks Rank #2. It has a VGM Score of B.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Atkore Inc. (ATKR) : Free Stock Analysis Report
Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV are some of the stocks with high ROE to profit from. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A.
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Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV are some of the stocks with high ROE to profit from. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A. DDS carries a Zacks Rank #2.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A. Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV are some of the stocks with high ROE to profit from. DDS carries a Zacks Rank #2.
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Dillard's, Inc. DDS, Suzano S.A. SUZ, Atkore Inc. ATKR, Nexstar Media Group, Inc. NXST and AbbVie Inc. ABBV are some of the stocks with high ROE to profit from. DDS carries a Zacks Rank #2. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report Suzano S.A.
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c1b0b6e4-e41e-4797-97d2-a3f6903cc6f3
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719163.0
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2023-06-27 00:00:00 UTC
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Ex-Dividend Reminder: Keurig Dr Pepper, Dillard's and Willis Towers Watson Public
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DDS
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-keurig-dr-pepper-dillards-and-willis-towers-watson-public
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Looking at the universe of stocks we cover at Dividend Channel, on 6/29/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Keurig Dr Pepper Inc will pay its quarterly dividend of $0.20 on 7/14/23, Dillard's Inc. will pay its quarterly dividend of $0.20 on 7/31/23, and Willis Towers Watson Public Ltd Co will pay its quarterly dividend of $0.84 on 7/17/23. As a percentage of KDP's recent stock price of $31.21, this dividend works out to approximately 0.64%, so look for shares of Keurig Dr Pepper Inc to trade 0.64% lower — all else being equal — when KDP shares open for trading on 6/29/23. Similarly, investors should look for DDS to open 0.06% lower in price and for WTW to open 0.36% lower, all else being equal.
Below are dividend history charts for KDP, DDS, and WTW, showing historical dividends prior to the most recent ones declared.
Keurig Dr Pepper Inc (Symbol: KDP):
Dillard's Inc. (Symbol: DDS):
Willis Towers Watson Public Ltd Co (Symbol: WTW):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.56% for Keurig Dr Pepper Inc, 0.25% for Dillard's Inc., and 1.44% for Willis Towers Watson Public Ltd Co.
Free Report: Top 8%+ Dividends (paid monthly)
In Tuesday trading, Keurig Dr Pepper Inc shares are currently up about 0.3%, Dillard's Inc. shares are up about 1.2%, and Willis Towers Watson Public Ltd Co shares are up about 0.6% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
Manufacturing Dividend Stock List
Eli Lilly Stock Split History
GE HealthCare Technologies RSI
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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Looking at the universe of stocks we cover at Dividend Channel, on 6/29/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.06% lower in price and for WTW to open 0.36% lower, all else being equal. Below are dividend history charts for KDP, DDS, and WTW, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/29/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Keurig Dr Pepper Inc (Symbol: KDP): Dillard's Inc. (Symbol: DDS): Willis Towers Watson Public Ltd Co (Symbol: WTW): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DDS to open 0.06% lower in price and for WTW to open 0.36% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/29/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.06% lower in price and for WTW to open 0.36% lower, all else being equal. Below are dividend history charts for KDP, DDS, and WTW, showing historical dividends prior to the most recent ones declared.
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Keurig Dr Pepper Inc (Symbol: KDP): Dillard's Inc. (Symbol: DDS): Willis Towers Watson Public Ltd Co (Symbol: WTW): In general, dividends are not always predictable, following the ups and downs of company profits over time. Looking at the universe of stocks we cover at Dividend Channel, on 6/29/23, Keurig Dr Pepper Inc (Symbol: KDP), Dillard's Inc. (Symbol: DDS), and Willis Towers Watson Public Ltd Co (Symbol: WTW) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.06% lower in price and for WTW to open 0.36% lower, all else being equal.
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bf0d4013-1fb7-4629-9447-2c5a1eb97139
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719164.0
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2023-06-23 00:00:00 UTC
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Kohl's (KSS) Up 10.5% Since Last Earnings Report: Can It Continue?
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DDS
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https://www.nasdaq.com/articles/kohls-kss-up-10.5-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Kohl's (KSS). Shares have added about 10.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kohl's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kohl's Q1 Earnings Beat Estimates, Revenues Drop Y/Y
Kohl's Corporation posted solid first-quarter fiscal 2023 results as both the top and bottom lines came ahead of the Zacks Consensus Estimate and the latter improved year over year.
Kohl’s saw an expansion in margins and a 6% decline in inventory. The store business witnessed productivity gains, with Sephora at Kohl’s continuing the sales momentum. Total beauty sales grew 150% in the first quarter.
Kohl's posted earnings of 13 cents per share compared with 11 cents reported in the year-ago period. The bottom line came way ahead of the Zacks Consensus Estimate of a loss of 44 cents.
Total revenues came in at $3,571 million, down from the prior-year quarter’s level of $3,715 million. However, the metric beat the Zacks Consensus Estimate of nearly $3,519 million. Net sales dipped 3.3% year over year to $3,355 million. Comparable sales or comps decreased by 4.3%.
Kohl's gross margin expanded 67 basis points (bps) to 39% in the reported quarter due to lower digital-led shipping costs, reduced freight expenses and simplified value strategies, partly countered by product cost inflation and increased shrink.
SG&A expenses fell by 4.2% to $1,238 million. As a percentage of total revenues, SG&A expenses declined 13 bps to 34.7%. This resulted from reduced Sephora openings and associated store refreshes (compared with the year-ago period) and overall cost management, partly negated by wage cost headwinds.
The company posted an operating income of $98 million, up 19.5% from $82 million in the year-ago period. The operating income margin rose 55 bps to 2.8%.
Other Financial Details
Kohl’s ended the quarter with cash and cash equivalents of $286 million, long-term debt of $1,637 million and shareholders’ equity of $3,720 million.
In February 2023, the company retired bonds of $164 million. In the full-year 2023, Kohl’s plans to retire bonds worth $111 million, which are maturing in December 2023.
Management expects capital expenditures in the band of $600-$650 million in the full-year 2023 (including the expansion of its Sephora collaboration and store refresh actions).
Guidance
Kohl’s reiterated its guidance for the full-year 2023. The company expects net sales to decline 2-4%, which includes the impact of a 53rd week. The operating margin is likely to be about 4%.
Earnings per share (EPS), excluding non-recurring charges, are envisioned in the band of $2.10-$2.70 compared to the adjusted loss of 15 cents reported in fiscal 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -70.82% due to these changes.
VGM Scores
At this time, Kohl's has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Kohl's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Kohl's is part of the Zacks Retail - Regional Department Stores industry. Over the past month, Dillard's (DDS), a stock from the same industry, has gained 13.3%. The company reported its results for the quarter ended April 2023 more than a month ago.
Dillard's reported revenues of $1.58 billion in the last reported quarter, representing a year-over-year change of -1.7%. EPS of $11.77 for the same period compares with $13.37 a year ago.
Dillard's is expected to post earnings of $4.21 per share for the current quarter, representing a year-over-year change of -54.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -11.1%.
Dillard's has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Kohl's Corporation (KSS) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Over the past month, Dillard's (DDS), a stock from the same industry, has gained 13.3%. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past month, Dillard's (DDS), a stock from the same industry, has gained 13.3%. Kohl's Q1 Earnings Beat Estimates, Revenues Drop Y/Y Kohl's Corporation posted solid first-quarter fiscal 2023 results as both the top and bottom lines came ahead of the Zacks Consensus Estimate and the latter improved year over year.
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Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past month, Dillard's (DDS), a stock from the same industry, has gained 13.3%. Kohl's Q1 Earnings Beat Estimates, Revenues Drop Y/Y Kohl's Corporation posted solid first-quarter fiscal 2023 results as both the top and bottom lines came ahead of the Zacks Consensus Estimate and the latter improved year over year.
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Over the past month, Dillard's (DDS), a stock from the same industry, has gained 13.3%. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for Kohl's (KSS).
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99bb9019-fbee-4cec-9386-3ff9cf8faa8f
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719165.0
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2023-06-08 00:00:00 UTC
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Bear of the Day: Macy's (M)
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DDS
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https://www.nasdaq.com/articles/bear-of-the-day%3A-macys-m
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nan
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nan
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Macy’s (M) is a Zacks Rank #5 (Strong Sell) that is an omni-channel retail organization, that operates stores, websites, and mobile applications. The company trades in a wide range of merchandise, including men’s, women’s, and children’s apparel and accessories, cosmetics, home furnishings, and other consumer goods.
The stock is bouncing after a bad earnings announcement late last week. While this is a relief to those stuck in the name, this is likely a great opportunity to exit the stock. Technical resistance and falling earnings estimates will continue to be a hurdle going forward.
About the Company
Macy’s is headquartered in New York, NY, and employs over 94,000 people. The company was founded in 1930 and was formerly known as Federated Department Stores.
Macy’s operates under three brands Macy's, Bloomingdale's, and bluemercury.
The stock values the company at $4.3 billion and has a Forward PE of 5. The low PE gives the stock a Zacks Style Score of “A” in Value. However, the stock scores an “F” in Momentum. The stock pays a dividend of just over 4%.
Q1 Earnings
In early June, Macy’s reported a 22% EPS beat but missed on revenues. The company also guided lower, dropping its FY23 range to $2.70-3.20 v the $3.73 expected. Macy’s sees comparable sales down -7.5 to -6%, lower than the previous -4% to -2% expected.
With that, the company guided Q2 lower. They now see Q2 at $0.10-0.15 v the $0.73 expected.
Management cited weakened demand trends in their discretionary categories. This forced markdowns, which was the reason for the adjusted guide lower.
Estimates
Analysts were forced to lower their estimates because of the guide.
Since earnings, numbers from the current quarter have fallen 70%, dropping from $0.73 to $0.22.
For the current year, we see a 14% drop, with estimates dropping from $3.79 a month ago to $3.26 today.
Looking to next year, there is little improvement. Analysts have lowered estimates 13% over the last 7 days.
Technical Take
After the numbers were released, Macy’s traded to the lows of the year, hitting $12.80. However, buyers stepped in and the stock got back most of the losses. Since then, the stock continued to squeeze higher, up over 25% from those lows.
Some of the bad news was likely priced in, which created a buy-the-news event. But investors should remain cautious about this rally.
The stock has run into the 50-day moving average and last time this happened back in March, the stock dropped over 20% in just a couple of weeks.
Investors should expect volatility to remain and avoid the stock until the fundamentals improve.
Summary
Macy’s is bouncing due to oversold conditions, but investors should take the opportunity to take their lumps into the up move. There is likely more selling to show itself after the squeeze higher is over.
For those interested in the sector, a better option might be Dillard’s (DDS). The stock is a Zacks Rank #3 (Hold), that has recently moved above its 200-day moving average.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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For those interested in the sector, a better option might be Dillard’s (DDS). Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Macy’s (M) is a Zacks Rank #5 (Strong Sell) that is an omni-channel retail organization, that operates stores, websites, and mobile applications.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in the sector, a better option might be Dillard’s (DDS). Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom It's undeniable.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in the sector, a better option might be Dillard’s (DDS). The stock has run into the 50-day moving average and last time this happened back in March, the stock dropped over 20% in just a couple of weeks.
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For those interested in the sector, a better option might be Dillard’s (DDS). Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. The company also guided lower, dropping its FY23 range to $2.70-3.20 v the $3.73 expected.
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e1cbaf3a-be53-4b4b-82d0-ed7f520ccde5
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719166.0
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2023-06-07 00:00:00 UTC
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DDS Makes Bullish Cross Above Critical Moving Average
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DDS
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https://www.nasdaq.com/articles/dds-makes-bullish-cross-above-critical-moving-average-0
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nan
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nan
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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $323.36, changing hands as high as $330.55 per share. Dillard's Inc. shares are currently trading up about 2.7% on the day. The chart below shows the one year performance of DDS shares, versus its 200 day moving average:
Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $329.12.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Also see:
Stocks Conducting Buybacks That Hedge Funds Are Buying
IYC Average Annual Return
SDY market cap history
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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $323.36, changing hands as high as $330.55 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $329.12. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Stocks Conducting Buybacks That Hedge Funds Are Buying IYC Average Annual Return SDY market cap history 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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $323.36, changing hands as high as $330.55 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $329.12. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Stocks Conducting Buybacks That Hedge Funds Are Buying IYC Average Annual Return SDY market cap history 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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $323.36, changing hands as high as $330.55 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $329.12. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Stocks Conducting Buybacks That Hedge Funds Are Buying IYC Average Annual Return SDY market cap history 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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $323.36, changing hands as high as $330.55 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $329.12. Dillard's Inc. shares are currently trading up about 2.7% on the day.
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434a318d-4a18-4448-9ba9-c585e3ff4d55
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719167.0
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2023-05-22 00:00:00 UTC
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Daily Dividend Report: UE,SAR,DDS,CABO,INGR
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DDS
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https://www.nasdaq.com/articles/daily-dividend-report%3A-uesarddscaboingr
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nan
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nan
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Urban Edge Properties announced today that its Board of Trustees has declared a regular quarterly dividend of $0.16 per common share. The dividend will be payable on June 30, 2023 to common shareholders of record on June 15, 2023.
Saratoga Investment, a business development company, today announced that its Board of Directors has declared a quarterly dividend of $0.70 per share for the fiscal first quarter ended May 31, 2023, an increase of $0.01 from $0.69 per share in the prior fiscal fourth quarter, and the thirteenth quarterly dividend increase in a row. This dividend is payable on June 29, 2023, to all stockholders of record at the close of business on June 13, 2023.
Dillard's announced that the Board of Directors has approved a new share repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock. The new open-ended authorization permits the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 or through privately negotiated transactions. The Board of Directors also declared a cash dividend of $0.20 per share on the Class A and Class B Common Stock of the Company payable July 31, 2023 to shareholders of record as of June 30, 2023.
The Board of Directors of Cable One today declared a quarterly cash dividend of $2.85 per share. The dividend is payable on June 16, 2023, to stockholders of record at the close of business on May 30, 2023.
Today, the board of directors of Ingredion Incorporated declared a quarterly dividend of $0.71 per share on the Company's common stock. The dividend is payable July 25, 2023, to stockholders of record at the close of business on July 3, 2023.
VIDEO: Daily Dividend Report: UE,SAR,DDS,CABO,INGR
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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VIDEO: Daily Dividend Report: UE,SAR,DDS,CABO,INGR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Urban Edge Properties announced today that its Board of Trustees has declared a regular quarterly dividend of $0.16 per common share. The new open-ended authorization permits the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 or through privately negotiated transactions.
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VIDEO: Daily Dividend Report: UE,SAR,DDS,CABO,INGR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Saratoga Investment, a business development company, today announced that its Board of Directors has declared a quarterly dividend of $0.70 per share for the fiscal first quarter ended May 31, 2023, an increase of $0.01 from $0.69 per share in the prior fiscal fourth quarter, and the thirteenth quarterly dividend increase in a row. The Board of Directors also declared a cash dividend of $0.20 per share on the Class A and Class B Common Stock of the Company payable July 31, 2023 to shareholders of record as of June 30, 2023.
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VIDEO: Daily Dividend Report: UE,SAR,DDS,CABO,INGR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Saratoga Investment, a business development company, today announced that its Board of Directors has declared a quarterly dividend of $0.70 per share for the fiscal first quarter ended May 31, 2023, an increase of $0.01 from $0.69 per share in the prior fiscal fourth quarter, and the thirteenth quarterly dividend increase in a row. The Board of Directors also declared a cash dividend of $0.20 per share on the Class A and Class B Common Stock of the Company payable July 31, 2023 to shareholders of record as of June 30, 2023.
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VIDEO: Daily Dividend Report: UE,SAR,DDS,CABO,INGR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors also declared a cash dividend of $0.20 per share on the Class A and Class B Common Stock of the Company payable July 31, 2023 to shareholders of record as of June 30, 2023. Today, the board of directors of Ingredion Incorporated declared a quarterly dividend of $0.71 per share on the Company's common stock.
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1d2eb136-e519-4889-ac4f-41509eac319d
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719168.0
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2023-05-22 00:00:00 UTC
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Consumer Sector Update for 05/22/2023: RYYAY, VLCN, DDS
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DDS
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https://www.nasdaq.com/articles/consumer-sector-update-for-05-22-2023%3A-ryyay-vlcn-dds
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nan
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nan
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Consumer stocks were slightly higher pre-bell on Monday, with the Consumer Staples Select Sector SPDR (XLP) rising nearly 0.1% and the Consumer Discretionary Select Sector SPDR (XLY) gaining 0.2%.
Ryanair Holdings (RYAAY) advanced 1.6% after reporting fiscal 2023 earnings of about 1.15 euros ($1.24) per diluted share, swinging from a per-share loss of 0.21 euros a year earlier. Revenue for the fiscal year ended March 31 was 10.78 billion euros, up from 4.8 billion euros.
Dillard's (DDS) was up 2.5%, after saying Saturday its board has approved a new share repurchase program authorizing the company to buy back up to $500 million of its class A common stock.
Volcon (VLCN) sank 30%, after saying it plans to offer securities in an underwritten public offering.
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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Dillard's (DDS) was up 2.5%, after saying Saturday its board has approved a new share repurchase program authorizing the company to buy back up to $500 million of its class A common stock. Consumer stocks were slightly higher pre-bell on Monday, with the Consumer Staples Select Sector SPDR (XLP) rising nearly 0.1% and the Consumer Discretionary Select Sector SPDR (XLY) gaining 0.2%. Ryanair Holdings (RYAAY) advanced 1.6% after reporting fiscal 2023 earnings of about 1.15 euros ($1.24) per diluted share, swinging from a per-share loss of 0.21 euros a year earlier.
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Dillard's (DDS) was up 2.5%, after saying Saturday its board has approved a new share repurchase program authorizing the company to buy back up to $500 million of its class A common stock. Consumer stocks were slightly higher pre-bell on Monday, with the Consumer Staples Select Sector SPDR (XLP) rising nearly 0.1% and the Consumer Discretionary Select Sector SPDR (XLY) gaining 0.2%. Revenue for the fiscal year ended March 31 was 10.78 billion euros, up from 4.8 billion euros.
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Dillard's (DDS) was up 2.5%, after saying Saturday its board has approved a new share repurchase program authorizing the company to buy back up to $500 million of its class A common stock. Consumer stocks were slightly higher pre-bell on Monday, with the Consumer Staples Select Sector SPDR (XLP) rising nearly 0.1% and the Consumer Discretionary Select Sector SPDR (XLY) gaining 0.2%. Ryanair Holdings (RYAAY) advanced 1.6% after reporting fiscal 2023 earnings of about 1.15 euros ($1.24) per diluted share, swinging from a per-share loss of 0.21 euros a year earlier.
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Dillard's (DDS) was up 2.5%, after saying Saturday its board has approved a new share repurchase program authorizing the company to buy back up to $500 million of its class A common stock. Consumer stocks were slightly higher pre-bell on Monday, with the Consumer Staples Select Sector SPDR (XLP) rising nearly 0.1% and the Consumer Discretionary Select Sector SPDR (XLY) gaining 0.2%. Ryanair Holdings (RYAAY) advanced 1.6% after reporting fiscal 2023 earnings of about 1.15 euros ($1.24) per diluted share, swinging from a per-share loss of 0.21 euros a year earlier.
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8632f42a-6e12-4f75-932c-636fcd2773ee
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719169.0
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2023-05-21 00:00:00 UTC
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Guru Fundamental Report for DDS
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DDS
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https://www.nasdaq.com/articles/guru-fundamental-report-for-dds-1
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nan
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nan
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating using this strategy is 100% 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.
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.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
Detailed Analysis of DILLARD'S INC
DDS Guru Analysis
DDS Fundamental Analysis
More Information on Kenneth Fisher
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
Additional Research Links
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice 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.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher.
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Of the 22 guru strategies we follow, DDS rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Kenneth Fisher Kenneth Fisher Portfolio About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. Below is Validea's guru fundamental report for DILLARD'S INC (DDS).
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Of the 22 guru strategies we follow, DDS rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Kenneth Fisher Kenneth Fisher Portfolio About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. Below is Validea's guru fundamental report for DILLARD'S INC (DDS).
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry.
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f4931773-77df-4a49-9742-3a6fe4271410
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719170.0
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2023-05-12 00:00:00 UTC
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Telsey Advisory Group Maintains Dillard's (DDS) Market Perform Recommendation
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DDS
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https://www.nasdaq.com/articles/telsey-advisory-group-maintains-dillards-dds-market-perform-recommendation
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Fintel reports that on May 12, 2023, Telsey Advisory Group maintained coverage of Dillard's (NYSE:DDS) with a Market Perform recommendation.
Analyst Price Forecast Suggests 3.65% Downside
As of May 11, 2023, the average one-year price target for Dillard's is 272.85. The forecasts range from a low of 156.55 to a high of $399.00. The average price target represents a decrease of 3.65% from its latest reported closing price of 283.18.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Dillard's is 6,688MM, a decrease of 4.01%. The projected annual non-GAAP EPS is 27.07.
Dillard's Declares $0.20 Dividend
On February 23, 2023 the company declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of March 31, 2023 received the payment on May 1, 2023. Previously, the company paid $0.20 per share.
At the current share price of $283.18 / share, the stock's dividend yield is 0.28%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.72%, the lowest has been 0.19%, and the highest has been 2.60%. The standard deviation of yields is 0.57 (n=237).
The current dividend yield is 0.77 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.02. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.33%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 549 funds or institutions reporting positions in Dillard's. This is an increase of 51 owner(s) or 10.24% in the last quarter. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 9.33%. Total shares owned by institutions increased in the last three months by 0.58% to 10,332K shares.
The put/call ratio of DDS is 0.36, indicating a bullish outlook.
What are Other Shareholders Doing?
Newport Trust holds 5,092K shares representing 29.95% ownership of the company. In it's prior filing, the firm reported owning 5,164K shares, representing a decrease of 1.43%. The firm decreased its portfolio allocation in DDS by 23.05% over the last quarter.
DFSVX - U.s. Small Cap Value Portfolio - Institutional Class holds 232K shares representing 1.37% ownership of the company. In it's prior filing, the firm reported owning 277K shares, representing a decrease of 19.31%. The firm decreased its portfolio allocation in DDS by 2.53% over the last quarter.
Envestnet Asset Management holds 179K shares representing 1.05% ownership of the company. In it's prior filing, the firm reported owning 1K shares, representing an increase of 99.33%. The firm decreased its portfolio allocation in DDS by 63.59% over the last quarter.
DFFVX - U.S. Targeted Value Portfolio - Institutional Class holds 164K shares representing 0.97% ownership of the company. In it's prior filing, the firm reported owning 166K shares, representing a decrease of 1.01%. The firm increased its portfolio allocation in DDS by 9.85% over the last quarter.
Clientfirst Wealth Management holds 157K shares representing 0.92% ownership of the company. In it's prior filing, the firm reported owning 159K shares, representing a decrease of 1.40%. The firm decreased its portfolio allocation in DDS by 5.48% over the last quarter.
Dillard`s Background Information
(This description is provided by the company.)
Dillard's, Inc., is an upscale American department store chain with approximately 282 stores in 29 states and headquartered in Little Rock, Arkansas. Currently, the largest number of stores are located in Texas with 57 and Florida with 42.
See all Dillard's regulatory filings.
This story originally appeared on Fintel.
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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Fintel reports that on May 12, 2023, Telsey Advisory Group maintained coverage of Dillard's (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 9.33%. The put/call ratio of DDS is 0.36, indicating a bullish outlook.
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Fintel reports that on May 12, 2023, Telsey Advisory Group maintained coverage of Dillard's (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 9.33%. The put/call ratio of DDS is 0.36, indicating a bullish outlook.
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Fintel reports that on May 12, 2023, Telsey Advisory Group maintained coverage of Dillard's (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 9.33%. The put/call ratio of DDS is 0.36, indicating a bullish outlook.
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Fintel reports that on May 12, 2023, Telsey Advisory Group maintained coverage of Dillard's (NYSE:DDS) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 9.33%. The put/call ratio of DDS is 0.36, indicating a bullish outlook.
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719171.0
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2023-05-12 00:00:00 UTC
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Dillard's (DDS) Q1 Earnings & Revenues Top Estimates, Dip Y/Y
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DDS
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https://www.nasdaq.com/articles/dillards-dds-q1-earnings-revenues-top-estimates-dip-y-y
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Dillard's Inc. DDS posted impressive first-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. This marked the ninth straight quarter of a top-line beat and the 11th straight quarter of a bottom-line beat. Results gained from better inventory management and consumer demand.
Adjusted earnings of $11.85 per share significantly surpassed the Zacks Consensus Estimate of $9.07 and our estimate of $7.29. However, the bottom line declined 13.4% from the year-ago quarter's $13.68 per share.
Total revenues of $1,584 million decreased 1.7% from the prior-year quarter but beat the Zacks Consensus Estimate of $1,568 million. Also, the figure surpassed our estimate of $1,549.2 million.
Total retail sales (excluding CDI Contractors, LLC) fell 4% year over year to $1,515 million. Comparable store sales also declined 4% year over year. The company witnessed robust sales in cosmetics and ladies’ apparel. On the flip side, ladies’ accessories and lingerie, and children’s apparel, were the weakest performing categories.
The retail and consolidated gross margins contracted 280 basis points (bps) each to 43.7% from the year-ago quarter.
Dillard's consolidated SG&A expenses (as a percentage of sales) expanded 70 bps to 21.6% from the prior-year quarter's 26.5%. In dollar terms, SG&A expenses (operating expenses) grew 1.4% to $406.4 million.
The retail operating expense rate expanded 80 bps to 25.7%. In dollar terms, retail operating expenses grew 4% to $456.3 million.
Image Source: Zacks Investment Research
Shares of DDS have lost 28.5% in the past three months compared with the industry's decline of 33%.
Financial Details
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $848.3 million, long-term debt of $321.4 million, and total shareholders' equity of $1,683.1 million. The company provided $280.9 million of cash through operating activities.
Capital expenditure for fiscal 2023 is likely to be $150 million, suggesting growth from the year-ago figure of $120 million. The company repurchased $113.8 million of Class A common stock under its existing repurchase program. As of Apr 29, it had shares worth $61.6 million remaining under its February 2022 plan.
Store Update
As of Apr 29, DDS operated 247 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote
Outlook
For fiscal 2023, Dillard’s expects depreciation and amortization of $180 million, whereas it reported $188 million in the prior year. Net interest income is likely to be $3 million, whereas it recorded expenses of $11 million in the prior year.
Stocks to Consider
Here are some better-ranked stocks that you may want to consider, namely, Urban Outfitters URBN, Kroger KR and DICK’S Sporting Goods DKS.
Urban Outfitters, a leading lifestyle product and services company, currently flaunts a Zacks Rank #1 (Strong Buy). The company’s expected EPS growth rate for three to five years is 18%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal year’s revenues suggests growth of 5% from the year-ago reported figure.
Kroger, a renowned grocery retailer, currently sports a Zacks Rank #1. KR has a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Kroger’s current financial year’s EPS suggests growth of 6.6% from the year-ago reported figure. KR has an expected EPS growth rate of 6% for three to five years.
DICK’S Sporting, which operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment, carries a Zacks Rank #2 (Buy) at present. The company’s expected EPS growth rate for three to five years is 5.4%.
The Zacks Consensus Estimate for DICK’S Sporting’s current fiscal year’s revenues and EPS suggests growth of 2.2% and 10%, respectively, from the year-ago reported figures. DKS has a trailing four-quarter earnings surprise of 10%, on average.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's Inc. DDS posted impressive first-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Image Source: Zacks Investment Research Shares of DDS have lost 28.5% in the past three months compared with the industry's decline of 33%. Store Update As of Apr 29, DDS operated 247 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report The Kroger Co. (KR) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted impressive first-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Image Source: Zacks Investment Research Shares of DDS have lost 28.5% in the past three months compared with the industry's decline of 33%.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report The Kroger Co. (KR) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted impressive first-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Image Source: Zacks Investment Research Shares of DDS have lost 28.5% in the past three months compared with the industry's decline of 33%.
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Dillard's Inc. DDS posted impressive first-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Image Source: Zacks Investment Research Shares of DDS have lost 28.5% in the past three months compared with the industry's decline of 33%. Store Update As of Apr 29, DDS operated 247 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
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719172.0
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2023-05-12 00:00:00 UTC
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Company News for May 12, 2023
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DDS
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https://www.nasdaq.com/articles/company-news-for-may-12-2023
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Shares of CyberArk Software Ltd. (CYBR) gained 3.9% after the company reported first-quarter 2023 loss of $0.17 per share, narrower than the Zacks Consensus Estimate of a loss of $0.26 per share.
Geron Corporation’s (GERN) shares rose 2.5% after the company reported first-quarter 2023 loss of $0.07 per share, narrower the Zacks Consensus Estimate of a loss of $0.09 per share.
Shares of Tapestry, Inc. (TPR) jumped 8.3% after the company reported third-quarter fiscal 2023 earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.59 per share.
Dillard's, Inc.’s (DDS) shares increased 0.2% after the company reported first-quarter 2023 earnings of $11.77 per share, outpacing the Zacks Consensus Estimate of $9.07 per share.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
Geron Corporation (GERN) : Free Stock Analysis Report
CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's, Inc.’s (DDS) shares increased 0.2% after the company reported first-quarter 2023 earnings of $11.77 per share, outpacing the Zacks Consensus Estimate of $9.07 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Geron Corporation (GERN) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Geron Corporation (GERN) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc.’s (DDS) shares increased 0.2% after the company reported first-quarter 2023 earnings of $11.77 per share, outpacing the Zacks Consensus Estimate of $9.07 per share. Shares of CyberArk Software Ltd. (CYBR) gained 3.9% after the company reported first-quarter 2023 loss of $0.17 per share, narrower than the Zacks Consensus Estimate of a loss of $0.26 per share.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Geron Corporation (GERN) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, Inc.’s (DDS) shares increased 0.2% after the company reported first-quarter 2023 earnings of $11.77 per share, outpacing the Zacks Consensus Estimate of $9.07 per share. Shares of CyberArk Software Ltd. (CYBR) gained 3.9% after the company reported first-quarter 2023 loss of $0.17 per share, narrower than the Zacks Consensus Estimate of a loss of $0.26 per share.
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Dillard's, Inc.’s (DDS) shares increased 0.2% after the company reported first-quarter 2023 earnings of $11.77 per share, outpacing the Zacks Consensus Estimate of $9.07 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Geron Corporation (GERN) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of CyberArk Software Ltd. (CYBR) gained 3.9% after the company reported first-quarter 2023 loss of $0.17 per share, narrower than the Zacks Consensus Estimate of a loss of $0.26 per share.
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719173.0
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2023-05-11 00:00:00 UTC
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Dillard's (DDS) Beats Q1 Earnings and Revenue Estimates
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DDS
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https://www.nasdaq.com/articles/dillards-dds-beats-q1-earnings-and-revenue-estimates-0
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Dillard's (DDS) came out with quarterly earnings of $11.77 per share, beating the Zacks Consensus Estimate of $9.07 per share. This compares to earnings of $13.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 29.77%. A quarter ago, it was expected that this department store operator would post earnings of $8.85 per share when it actually produced earnings of $14.50, delivering a surprise of 63.84%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Dillard's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $1.58 billion for the quarter ended April 2023, surpassing the Zacks Consensus Estimate by 1.04%. This compares to year-ago revenues of $1.61 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dillard's shares have lost about 12.6% since the beginning of the year versus the S&P 500's gain of 7.8%.
What's Next for Dillard's?
While Dillard's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dillard's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $5.50 on $1.58 billion in revenues for the coming quarter and $33.39 on $6.78 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Regional Department Stores is currently in the top 48% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Macy's (M), another stock in the same industry, has yet to report results for the quarter ended April 2023. The results are expected to be released on June 1.
This department store operator is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of -57.4%. The consensus EPS estimate for the quarter has been revised 4.4% lower over the last 30 days to the current level.
Macy's' revenues are expected to be $5.12 billion, down 4.3% from the year-ago quarter.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
Macy's, Inc. (M) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS) came out with quarterly earnings of $11.77 per share, beating the Zacks Consensus Estimate of $9.07 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's (DDS) came out with quarterly earnings of $11.77 per share, beating the Zacks Consensus Estimate of $9.07 per share. Dillard's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $1.58 billion for the quarter ended April 2023, surpassing the Zacks Consensus Estimate by 1.04%.
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Dillard's (DDS) came out with quarterly earnings of $11.77 per share, beating the Zacks Consensus Estimate of $9.07 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $1.58 billion for the quarter ended April 2023, surpassing the Zacks Consensus Estimate by 1.04%.
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Dillard's (DDS) came out with quarterly earnings of $11.77 per share, beating the Zacks Consensus Estimate of $9.07 per share. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
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719174.0
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2023-05-09 00:00:00 UTC
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Why Dillard's (DDS) Could Beat Earnings Estimates Again
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https://www.nasdaq.com/articles/why-dillards-dds-could-beat-earnings-estimates-again
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nan
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Dillard's (DDS), which belongs to the Zacks Retail - Regional Department Stores industry, could be a great candidate to consider.
This department store operator has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 94.45%.
For the last reported quarter, Dillard's came out with earnings of $14.50 per share versus the Zacks Consensus Estimate of $8.85 per share, representing a surprise of 63.84%. For the previous quarter, the company was expected to post earnings of $4.87 per share and it actually produced earnings of $10.96 per share, delivering a surprise of 125.05%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Dillard's lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Dillard's has an Earnings ESP of +6.21% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS), which belongs to the Zacks Retail - Regional Department Stores industry, could be a great candidate to consider. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Dillard's (DDS), which belongs to the Zacks Retail - Regional Department Stores industry, could be a great candidate to consider. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Dillard's (DDS), which belongs to the Zacks Retail - Regional Department Stores industry, could be a great candidate to consider. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Dillard's (DDS), which belongs to the Zacks Retail - Regional Department Stores industry, could be a great candidate to consider. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ed6427d4-85ca-4efe-a33d-58a0bf42364a
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719175.0
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2023-05-09 00:00:00 UTC
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Want Better Returns? Don?t Ignore These 2 Retail and Wholesale Stocks Set to Beat Earnings
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DDS
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https://www.nasdaq.com/articles/want-better-returns-dont-ignore-these-2-retail-and-wholesale-stocks-set-to-beat-earnings-8
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nan
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nan
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Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Dillard's?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Dillard's (DDS) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $9.63 a share two days away from its upcoming earnings release on May 11, 2023.
Dillard's Earnings ESP sits at +6.21%, which, as explained above, is calculated by taking the percentage difference between the $9.63 Most Accurate Estimate and the Zacks Consensus Estimate of $9.07. DDS is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DDS is one of just a large database of Retail and Wholesale stocks with positive ESPs. Another solid-looking stock is Chipotle Mexican Grill (CMG).
Chipotle Mexican Grill, which is readying to report earnings on July 25, 2023, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $12.17 a share, and CMG is 77 days out from its next earnings report.
Chipotle Mexican Grill's Earnings ESP figure currently stands at +1.47% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $11.99.
Because both stocks hold a positive Earnings ESP, DDS and CMG could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $9.63 a share two days away from its upcoming earnings release on May 11, 2023. DDS is also part of a large group of stocks that boast a positive ESP. DDS is one of just a large database of Retail and Wholesale stocks with positive ESPs.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's (DDS) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $9.63 a share two days away from its upcoming earnings release on May 11, 2023. DDS is also part of a large group of stocks that boast a positive ESP.
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Dillard's (DDS) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $9.63 a share two days away from its upcoming earnings release on May 11, 2023. DDS is also part of a large group of stocks that boast a positive ESP. DDS is one of just a large database of Retail and Wholesale stocks with positive ESPs.
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Because both stocks hold a positive Earnings ESP, DDS and CMG could potentially post earnings beats in their next reports. Dillard's (DDS) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $9.63 a share two days away from its upcoming earnings release on May 11, 2023. DDS is also part of a large group of stocks that boast a positive ESP.
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80b1fa34-144b-496f-9482-bd7246680c43
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719176.0
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2023-05-08 00:00:00 UTC
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JP Morgan Maintains Dillard's (DDS) Underweight Recommendation
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DDS
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https://www.nasdaq.com/articles/jp-morgan-maintains-dillards-dds-underweight-recommendation
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nan
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nan
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Fintel reports that on May 8, 2023, JP Morgan maintained coverage of Dillard's (NYSE:DDS) with a Underweight recommendation.
Analyst Price Forecast Suggests 6.13% Downside
As of April 24, 2023, the average one-year price target for Dillard's is 272.85. The forecasts range from a low of 156.55 to a high of $399.00. The average price target represents a decrease of 6.13% from its latest reported closing price of 290.68.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Dillard's is 6,688MM, a decrease of 4.41%. The projected annual non-GAAP EPS is 27.07.
Dillard's Declares $0.20 Dividend
On February 23, 2023 the company declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of March 31, 2023 received the payment on May 1, 2023. Previously, the company paid $0.20 per share.
At the current share price of $290.68 / share, the stock's dividend yield is 0.28%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.72%, the lowest has been 0.19%, and the highest has been 2.60%. The standard deviation of yields is 0.57 (n=237).
The current dividend yield is 0.78 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.02. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.33%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 544 funds or institutions reporting positions in Dillard's. This is an increase of 44 owner(s) or 8.80% in the last quarter. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 11.31%. Total shares owned by institutions decreased in the last three months by 1.93% to 10,238K shares.
The put/call ratio of DDS is 0.37, indicating a bullish outlook.
What are Other Shareholders Doing?
Newport Trust holds 5,164K shares representing 30.38% ownership of the company. In it's prior filing, the firm reported owning 5,180K shares, representing a decrease of 0.30%. The firm decreased its portfolio allocation in DDS by 3.03% over the last quarter.
DFSVX - U.s. Small Cap Value Portfolio - Institutional Class holds 232K shares representing 1.37% ownership of the company. In it's prior filing, the firm reported owning 277K shares, representing a decrease of 19.31%. The firm decreased its portfolio allocation in DDS by 2.53% over the last quarter.
DFFVX - U.S. Targeted Value Portfolio - Institutional Class holds 164K shares representing 0.97% ownership of the company. In it's prior filing, the firm reported owning 166K shares, representing a decrease of 1.01%. The firm increased its portfolio allocation in DDS by 9.85% over the last quarter.
Clientfirst Wealth Management holds 157K shares representing 0.92% ownership of the company. In it's prior filing, the firm reported owning 159K shares, representing a decrease of 1.40%. The firm decreased its portfolio allocation in DDS by 5.48% over the last quarter.
DFAT - Dimensional U.S. Targeted Value ETF holds 147K shares representing 0.87% ownership of the company. In it's prior filing, the firm reported owning 152K shares, representing a decrease of 2.85%. The firm increased its portfolio allocation in DDS by 2.08% over the last quarter.
Dillard`s Background Information
(This description is provided by the company.)
Dillard's, Inc., is an upscale American department store chain with approximately 282 stores in 29 states and headquartered in Little Rock, Arkansas. Currently, the largest number of stores are located in Texas with 57 and Florida with 42.
See all Dillard's regulatory filings.
This story originally appeared on Fintel.
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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Fintel reports that on May 8, 2023, JP Morgan maintained coverage of Dillard's (NYSE:DDS) with a Underweight recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 11.31%. The put/call ratio of DDS is 0.37, indicating a bullish outlook.
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Fintel reports that on May 8, 2023, JP Morgan maintained coverage of Dillard's (NYSE:DDS) with a Underweight recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 11.31%. The put/call ratio of DDS is 0.37, indicating a bullish outlook.
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Fintel reports that on May 8, 2023, JP Morgan maintained coverage of Dillard's (NYSE:DDS) with a Underweight recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 11.31%. The put/call ratio of DDS is 0.37, indicating a bullish outlook.
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Fintel reports that on May 8, 2023, JP Morgan maintained coverage of Dillard's (NYSE:DDS) with a Underweight recommendation. Average portfolio weight of all funds dedicated to DDS is 0.25%, a decrease of 11.31%. The put/call ratio of DDS is 0.37, indicating a bullish outlook.
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f6f7b924-d7bb-469d-a375-9fa78dfdc5c3
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719177.0
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2023-05-04 00:00:00 UTC
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Dillard's Becomes Oversold
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DDS
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https://www.nasdaq.com/articles/dillards-becomes-oversold-0
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DDS entered into oversold territory, changing hands as low as $280.74 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Dillard's Inc., the RSI reading has hit 29.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 42.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.28% based upon the recent $288.08 share price.
A bullish investor could look at DDS's 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DDS is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
Top High Dividend Yield Stocks
UFPI Dividend History
NFM Historical Stock Prices
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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A bullish investor could look at DDS's 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DDS entered into oversold territory, changing hands as low as $280.74 per share.
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Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DDS entered into oversold territory, changing hands as low as $280.74 per share. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.28% based upon the recent $288.08 share price.
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Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DDS entered into oversold territory, changing hands as low as $280.74 per share. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.28% based upon the recent $288.08 share price.
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Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.28% based upon the recent $288.08 share price. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DDS entered into oversold territory, changing hands as low as $280.74 per share.
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ad5a86db-7ec3-4796-8fdc-437977cf25ce
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719178.0
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2023-05-04 00:00:00 UTC
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Analysts Estimate Dillard's (DDS) to Report a Decline in Earnings: What to Look Out for
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DDS
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https://www.nasdaq.com/articles/analysts-estimate-dillards-dds-to-report-a-decline-in-earnings%3A-what-to-look-out-for
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nan
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nan
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The market expects Dillard's (DDS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This department store operator is expected to post quarterly earnings of $8.98 per share in its upcoming report, which represents a year-over-year change of -32.8%.
Revenues are expected to be $1.55 billion, down 3.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.06% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Dillard's?
For Dillard's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -18.85%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Dillard's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Dillard's would post earnings of $8.85 per share when it actually produced earnings of $14.50, delivering a surprise of +63.84%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Dillard's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. The market expects Dillard's (DDS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2023. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success.
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The market expects Dillard's (DDS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2023. While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success.
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The market expects Dillard's (DDS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2023. While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success.
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The market expects Dillard's (DDS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2023. While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success.
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f399174d-758c-496f-9726-cca1a9d323cd
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719179.0
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2023-05-03 00:00:00 UTC
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Here's How Dillard's (DDS) is Positioned Ahead of Q1 Earnings
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DDS
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https://www.nasdaq.com/articles/heres-how-dillards-dds-is-positioned-ahead-of-q1-earnings
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nan
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nan
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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for fiscal first-quarter revenues of $1.56 billion indicates a 3.2% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $8.94 per share, indicating a 33.1% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
We expect the company’s fiscal first-quarter total revenues to decline 5.7% year over year to $1,549.2 million and earnings to plunge 46.7% to $7.29 per share.
In the last reported quarter, the company recorded an earnings surprise of 63.8%. We note that in the trailing four quarters, the company’s bottom line beat the Zacks Consensus Estimate by 140.3%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Key Factors to Note
Dillard’s has been benefiting from the continued momentum in consumer demand and inventory-management initiatives. The company’s strategy to offer fashion-forward and trendy products to attract customers has been a key driver.
DDS is likely to have retained its sales momentum on robust sales across product categories and regions. It has been witnessing robust demand for cosmetics, men’s apparel and accessories, home and furniture, and shoes.
However, stiff competition and inflation are likely to have been concerning. The company has been witnessing elevated SG&A expenses for the past few quarters, which have been denting its bottom line to some extent. Increased payroll and payroll-related expenses are likely to have been other headwinds. Such downsides are anticipated to have affected DDS’s profitability in the to-be-reported quarter.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dillard’s currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.
Ross Stores ROST currently has an Earnings ESP of +0.94% and a Zacks Rank #2. The Zacks Consensus Estimate for ROST’s first-quarter fiscal 2023 earnings stands at $1.06 per share, implying year-over-year growth of 9.3%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores is estimated to report revenues of $4.5 billion, which suggests an increase of 3.9% from the year-ago quarter’s actual. ROST has a trailing four-quarter earnings surprise of 10.3%, on average.
Urban Outfitters URBN currently has an Earnings ESP of +4.59% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 36 cents suggests growth of 9.1% from the year-ago quarter.
Urban Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.1 billion, indicating an increase of 3.9% from the figure reported in the year-ago quarter. URBN has a trailing four-quarter negative earnings surprise of 7.1%, on average.
DICK'S Sporting Goods DKS currently has an Earnings ESP of +4.43% and a Zacks Rank #2. DKS is likely to register year-over-year top and bottom-line growth in its first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.83 billion, suggesting 4.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for DICK'S earnings for the fiscal first quarter is pegged at $3.18 per share, suggesting 11.9% growth from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. DKS delivered an earnings beat of 10%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. DDS is likely to have retained its sales momentum on robust sales across product categories and regions. Such downsides are anticipated to have affected DDS’s profitability in the to-be-reported quarter.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. DDS is likely to have retained its sales momentum on robust sales across product categories and regions.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. DDS is likely to have retained its sales momentum on robust sales across product categories and regions.
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Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. DDS is likely to have retained its sales momentum on robust sales across product categories and regions. Such downsides are anticipated to have affected DDS’s profitability in the to-be-reported quarter.
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77aa00b5-73fa-4bce-aa05-4a62f02ce51e
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719180.0
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2023-05-03 00:00:00 UTC
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Bear of the Day: Kohl's (KSS)
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DDS
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https://www.nasdaq.com/articles/bear-of-the-day%3A-kohls-kss
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nan
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nan
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Today’s Bear of the Day is a stock that has been with several headwinds. An intensely competitive retail landscape, with both online and brick-and-mortar giants vying for market share, the rise of e-commerce platforms like Amazon and the resurgence of competitors like Walmart and Target have put significant pressure on today’s Bear of the Day, Kohl’s (KSS).
Kohl's (KSS) is a leading retail company that has been facing some challenges lately. While Kohl's has shown resilience in the past, there are several factors that suggest caution for investors considering the stock in the short term.
Kohl's earnings performance has been inconsistent in recent quarters, with the company missing consensus EPS estimates in some instances. This uneven financial track record raises concerns about the company's ability to navigate the challenges it faces and deliver stable results for investors.
Over the last sixty days, 4 analysts have cut their earnings expectations for the current year while three have done so for last year. The bearish move has dropped our Zacks Consensus Estimates for the current year from $3.20 to $2.35 while next year’s number is off from $3.23 to $2.85. That is the reason why the company is currently a Zacks Rank $5 (Strong Sell) as estimates continue to come under pressure.
Kohl’s is in the Retail – Regional Department Stores Industry which ranks in the Bottom 6% of our Zacks Industry Rank. There are currently no stocks within this industry which are in the good graces of our Zacks Rank. However, there are two stocks which are Zacks Rank #3 (Hold) stocks. These include Dillard’s (DDS) and Macy’s (M).
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Macy's, Inc. (M) : Free Stock Analysis Report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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These include Dillard’s (DDS) and Macy’s (M). Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. An intensely competitive retail landscape, with both online and brick-and-mortar giants vying for market share, the rise of e-commerce platforms like Amazon and the resurgence of competitors like Walmart and Target have put significant pressure on today’s Bear of the Day, Kohl’s (KSS).
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Dillard’s (DDS) and Macy’s (M). The bearish move has dropped our Zacks Consensus Estimates for the current year from $3.20 to $2.35 while next year’s number is off from $3.23 to $2.85.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Dillard’s (DDS) and Macy’s (M). Kohl’s is in the Retail – Regional Department Stores Industry which ranks in the Bottom 6% of our Zacks Industry Rank.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Dillard’s (DDS) and Macy’s (M). Kohl's (KSS) is a leading retail company that has been facing some challenges lately.
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a3ad88bf-fab3-47ec-bb4b-ce62e961b020
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719181.0
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2023-04-21 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Dillard's (DDS) Stock?
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DDS
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-dillards-dds-stock-0
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nan
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nan
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Investors in Dillard's, Inc. DDS need to pay close attention to the stock based on moves in the options market lately. That is because the May 19, 2023 $235.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Dillard’s shares, but what is the fundamental picture for the company? Currently, Dillard’s is a Zacks Rank #3 (Hold) in the Retail - Regional Department Stores Industry that ranks in the Bottom 16% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $7.10 per share to $8.94 in that period.
Given the way analysts feel about Dillard’s right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Investors in Dillard's, Inc. DDS need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Dillard's, Inc. DDS need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Dillard's, Inc. DDS need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Dillard's, Inc. DDS need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates.
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59a85562-4ee1-459b-8b81-7e6b7864f2a0
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719182.0
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2023-04-20 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DDS
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DDS
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-dds
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nan
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nan
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In trading on Thursday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $314.55, changing hands as high as $322.92 per share. Dillard's Inc. shares are currently trading up about 2.7% on the day. The chart below shows the one year performance of DDS shares, versus its 200 day moving average:
Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $321.71.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Also see:
Stocks Insiders And Hedge Funds Are Buying
TWNK market cap history
COKE Dividend Growth Rate
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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In trading on Thursday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $314.55, changing hands as high as $322.92 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $321.71. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Stocks Insiders And Hedge Funds Are Buying TWNK market cap history COKE Dividend Growth Rate 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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In trading on Thursday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $314.55, changing hands as high as $322.92 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $321.71. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Stocks Insiders And Hedge Funds Are Buying TWNK market cap history COKE Dividend Growth Rate 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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In trading on Thursday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $314.55, changing hands as high as $322.92 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $321.71. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » Also see: Stocks Insiders And Hedge Funds Are Buying TWNK market cap history COKE Dividend Growth Rate 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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In trading on Thursday, shares of Dillard's Inc. (Symbol: DDS) crossed above their 200 day moving average of $314.55, changing hands as high as $322.92 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $321.71. Dillard's Inc. shares are currently trading up about 2.7% on the day.
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523438a7-bd70-4fad-82b7-c8b7e37500e9
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719183.0
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2023-04-16 00:00:00 UTC
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7 Short-Squeeze Stocks That Are Driving Hedge Funds Crazy
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DDS
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https://www.nasdaq.com/articles/7-short-squeeze-stocks-that-are-driving-hedge-funds-crazy
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although the concept of gambling on short-squeeze stocks present risks, certain market ideas drive hedge funds crazy. By this statement, I’m referring to companies that speculators believe in their hearts should tumble for various reasons. Nevertheless, they keep attracting speculators on the other side of the trade, hoping for quick profits of their own.
On this list, I’m even going to mention one company that arguably should fail as a matter of moral principle. And yet, seemingly amoral traders continue to bid up short-squeeze stocks that should have no business attracting public capital. Undoubtedly, these enterprises represent some of the most frustrating market ideas out there.
BIG Big Lots $10.44
UPST Upstart $15.40
DDS Dillard’s $299.84
NVAX Novavax $9.16
WRBY Warby Parker $11.09
ARAV Aravive $1.68
GEO Geo Group $8.17
Big Lots (BIG)
Source: Vova Shevchuk / Shutterstock.com
An American furniture and home décor retailer, Big Lots (NYSE:BIG) has long represented a major component of the retail landscape. Unfortunately, the dramatic ebb and flow of the Covid-19 crisis saw shares skyrocket in 2021 before tumbling badly. Since the Jan. opener, BIG fell 26%. And in the trailing one-year period, it’s down over 70%.
Therefore, it’s no surprise that BIG symbolizes one of the short-squeeze stocks. According to data from Benzinga, BIG’s short interest is 56.43% of its float. Also, its short interest ratio is 6.7 days to cover. Also, Gurufocus warns investors that Big Lots may be a value trap. With a subterranean cash-to-debt ratio, circumstances don’t look great for the retailer.
Still, contrarians keep bidding it up. For instance, in the past five sessions, BIG’s actually in the green to the tune of 2.2%. That’s frustrating for bears who would rather see share tumble straight down. Not only that, Wall Street analysts peg BIG as a consensus moderate sell. Still, it keeps ticking.
Upstart (UPST)
Source: PX Media / Shutterstock
An artificial intelligence-based lending platform, Upstart (NASDAQ:UPST) partners with banks and credit unions to provide consumer loans using non-traditional variables. These include education and employment to predict creditworthiness. Although a relevant and intriguing idea, UPST failed to attract investors. Over the past 365 days, UPST fell nearly 81%.
Therefore, it’s no shocker that Upstart attracts the wrong kind of attention. Per Benzinga, UPST’s short interest stands at 40.84% while its short interest ratio is 4.3 days to cover. Financially, Upstart’s numbers look ugly. For example, its three-year sales growth rate fell to 3.8% below breakeven. Its net margin is 13% below zero.
Still, contrarians bid UPST up, which frustrates those looking for quick, consistent scores with short-squeeze stocks. As evidence, since the January opener, UPST gained over 22%. Conspicuously, Wall Street analysts peg UPST as a consensus moderate sell. Their average price target sits at $14.61, implying over 7% downside risk.
Dillard’s (DDS)
Source: Epic Cure / Shutterstock
With the consumer economy struggling with stubbornly high inflation and accelerating mass layoffs, it’s no surprise that several discretionary retailers make up the ranks of short-squeeze stocks. And that goes for Dillard’s (NYSE:DDS), a popular department store. On paper, the bears should have an easy time extracting “negative” profits from the upscale department store chain.
Per Benzinga, DDS’ short interest pings at 37.12%. Also, its short interest ratio comes out to a rather lofty 9.4 days. However, Dillard’s shares have been resilient. Yes, they’re down almost 7% since the January opener. But they’re up slightly above parity in the trailing year. In the past five years, DDS gained nearly 310%.
Financially, Dillard’s enjoys a strong cash-to-debt ratio of 1.44. Also, it touts a three-year revenue growth rate of 16.8% and a trailing-year net margin of 12.74%. Both stats rank well into the underlying sector’s upper echelon. Adding to the frustration, analysts peg DDS as a consensus moderate sell. There, Dillard’s is one of the short-squeeze stocks to be careful with.
Novavax (NVAX)
Source: Zurijeta / Shutterstock.com
While betting on or against short-squeeze stocks always presents high risks, some ideas sell themselves. Arguably, that’s the case for biopharmaceutical firm Novavax (NASDAQ:NVAX). Skyrocketing to fame during the Covid-19 circus after years of struggling for positive momentum, NVAX once appeared as smart speculation. Not anymore. As fears of the SARS-CoV-2 virus fade out, Novavax lost tremendous relevance.
Indeed, the chart performance – a loss of nearly 84% in the past one-year period – says everything. Logically, Benzinga points out that NVAX’s short interest hit 38.69%. Moreover, its short interest ratio came out to 5.2 days to cover.
Conspicuously, Gurufocus labeled Novavax as a possible value trap. Because of its three-year revenue growth rate of 219.9%, NVAX appears ridiculously undervalued relative to sales. Here’s the thing, though: that sales metric won’t stand a snowball’s chance in [that warm place].
Still, contrarians bid up NVAX stock like crazy, thus equally driving the bears nuts. In the trailing month, NVAX gained nearly 52% of equity value. That’s wild although you’ve got to figure the bears will eventually win.
Warby Parker (WRBY)
Source: shutterstock.com/CC7
On the surface, Warby Parker (NYSE:WRBY) owns an enticing enterprise. An online retailer of prescription glasses, contact lenses and sunglasses, Warby brings fashionable eyewear at an affordable price. Also, it features physical locations in select areas. Unfortunately, WRBY failed to resonate with investors. Since making its public market debut in 2021, shares stumbled more than 79%.
Unsurprisingly given this context, WRBY’s short interest pings at 41.12%, a lofty figure. Also, its short interest ratio is 8.3 days to cover, which is also rather elevated. Financially, I must say Warby appears a mess. For example, its Altman Z-Score sits at 2.14, which straddles the distress zone. Even worse, its three-year revenue growth rate is 46.1% below breakeven.
Of course, its profit margins (outside of gross margin) sit in negative territory, averaging more than 18% below zero. Frankly, the business doesn’t seem very sustainable. Still, it manages to keep popping higher. In the past month, WRBY gained over 6%, frustrating bears looking for an easy play among short-squeeze stocks.
Aravive (ARAV)
Source: Freedom365day / Shutterstock.com
Headquartered in Houston, Texas, Aravive (NASDAQ:ARAV) is a biotech firm developing transformative targeted cancer therapeutics. Although Aravive garners public support for its pursuit of addressing a terrible disease, it failed to impress investors. In the past five years, ARAV gave up over 81% of equity value. Honestly, it’s feast-or-famine in the speculative biotech arena.
Also, having a diminutive market capitalization of $103.5 million doesn’t help with confidence. Therefore, cynical bears saw ARAV as one of the short-squeeze stocks. Right now, Benzinga notes that ARAV’s short interest pings at 41.73%. Also, its short interest ratio comes out to 7.5 days to cover.
Financially, Aravive seems incredibly risky. Conspicuously, its Altman Z-Score sits at 15.86 below parity, indicating deep distress. As well, long-term revenue and profitability trends also fell below zero.
Still, the bulls love ARAV, frustrating the shorts. Since the January opener, shares gained over 34%. Compounding matters is that Aravive enjoys a unanimous strong buy rating from analysts.
Geo Group (GEO)
Source: Chompoo Suriyo / Shutterstock.com
A publicly traded corporation that invests in private prisons and mental health facilities, Geo Group (NYSE:GEO) easily attracts controversy. Even before the Covid-19 crisis, many understandably had moral qualms about profiteering off others’ misery. However, the events of the pandemic brought to light social and racial inequities that plague our justice system.
So, the hedge funds and other professional short traders probably sat around and figured: if there’s one example of short-squeeze stocks where contrarian opposition would be minimal, it’s got to be GEO. Unsurprisingly, GEO’s short interest hit 36.78% while its short interest ratio pinged at 9.5 days to cover.
Nevertheless, the bulls have frustrated the shorts even with this morally objectionable enterprise. Plus, what really gets on the bears’ nerve is Geo’s financials. Featuring a sub-par balance sheet and negative sales, GEO appears wildly risky. Still, it gets love from contrarian optimists. In the trailing year, GEO gained almost 21%. Even Noble Financial’s Joe Gomes sees GEO hitting $15, implying nearly 84% upside potential. Wild.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Short-Squeeze Stocks That Are Driving Hedge Funds Crazy appeared first on InvestorPlace.
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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Dillard’s (DDS) Source: Epic Cure / Shutterstock With the consumer economy struggling with stubbornly high inflation and accelerating mass layoffs, it’s no surprise that several discretionary retailers make up the ranks of short-squeeze stocks. BIG Big Lots $10.44 UPST Upstart $15.40 DDS Dillard’s $299.84 NVAX Novavax $9.16 WRBY Warby Parker $11.09 ARAV Aravive $1.68 GEO Geo Group $8.17 Big Lots (BIG) Source: Vova Shevchuk / Shutterstock.com An American furniture and home décor retailer, Big Lots (NYSE:BIG) has long represented a major component of the retail landscape. And that goes for Dillard’s (NYSE:DDS), a popular department store.
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BIG Big Lots $10.44 UPST Upstart $15.40 DDS Dillard’s $299.84 NVAX Novavax $9.16 WRBY Warby Parker $11.09 ARAV Aravive $1.68 GEO Geo Group $8.17 Big Lots (BIG) Source: Vova Shevchuk / Shutterstock.com An American furniture and home décor retailer, Big Lots (NYSE:BIG) has long represented a major component of the retail landscape. Dillard’s (DDS) Source: Epic Cure / Shutterstock With the consumer economy struggling with stubbornly high inflation and accelerating mass layoffs, it’s no surprise that several discretionary retailers make up the ranks of short-squeeze stocks. And that goes for Dillard’s (NYSE:DDS), a popular department store.
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BIG Big Lots $10.44 UPST Upstart $15.40 DDS Dillard’s $299.84 NVAX Novavax $9.16 WRBY Warby Parker $11.09 ARAV Aravive $1.68 GEO Geo Group $8.17 Big Lots (BIG) Source: Vova Shevchuk / Shutterstock.com An American furniture and home décor retailer, Big Lots (NYSE:BIG) has long represented a major component of the retail landscape. Dillard’s (DDS) Source: Epic Cure / Shutterstock With the consumer economy struggling with stubbornly high inflation and accelerating mass layoffs, it’s no surprise that several discretionary retailers make up the ranks of short-squeeze stocks. And that goes for Dillard’s (NYSE:DDS), a popular department store.
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BIG Big Lots $10.44 UPST Upstart $15.40 DDS Dillard’s $299.84 NVAX Novavax $9.16 WRBY Warby Parker $11.09 ARAV Aravive $1.68 GEO Geo Group $8.17 Big Lots (BIG) Source: Vova Shevchuk / Shutterstock.com An American furniture and home décor retailer, Big Lots (NYSE:BIG) has long represented a major component of the retail landscape. Dillard’s (DDS) Source: Epic Cure / Shutterstock With the consumer economy struggling with stubbornly high inflation and accelerating mass layoffs, it’s no surprise that several discretionary retailers make up the ranks of short-squeeze stocks. And that goes for Dillard’s (NYSE:DDS), a popular department store.
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902f6776-3648-4982-b502-3f0a9108d216
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719184.0
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2023-04-04 00:00:00 UTC
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Dillard's (DDS) Inventory Management Efforts Aid, Costs Hurt
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DDS
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https://www.nasdaq.com/articles/dillards-dds-inventory-management-efforts-aid-costs-hurt
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nan
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nan
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Dillard’s, Inc. DDS continues to display solid momentum, thanks to its sound fundamentals and impressive growth efforts. Continued consumer demand and focus on inventory and expense management bode well. The company’s strategy to offer more fashion-forward and trendy products in order to attract customers has been a key driver.
DDS boasts a robust earnings surprise trend, which continued in fourth-quarter fiscal 2022. The company’s sales and earnings beat the Zacks Consensus Estimate. This marked the eighth straight quarter of a top-line beat and the 10th straight quarter of a bottom-line beat. Results gained from better inventory management and consumer demand. The company witnessed robust sales in cosmetics and ladies’ apparel.
Backed by the robust surprise trend, the Zacks Rank #1 (Strong Buy) stock has outperformed the industry and the Retail - Wholesale sector in the past year. DDS has rallied 16.6% against the industry’s decline of 30.5% and the sector’s dip of 15.6%. The stock also compares favorably with the S&P 500’s fall of 10.2% in the same period.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DDS' fiscal 2023 earnings also echoes a positive sentiment. The consensus mark for DDS’ fiscal 2023 earnings has moved up 2.9% to $33.50 per share in the past 30 days.
Dillard's is likely to retain its sales momentum on strong consumer demand, and robust sales across product categories and regions. In the fiscal fourth quarter, total revenues of $2,127 million increased 0.7% from the prior-year quarter. Total retail sales (excluding CDI Contractors, LLC) remained almost flat year over year to $2,069 million. Comparable store sales also remained flat year over year.
The company’s initiatives to control inventory and expenses have been contributing to bottom-line gains for the past few quarters. Improved consumer demand and better inventory management have been leading to lower markdowns.
Dillard's remains focused on maintaining a strong balance sheet and liquidity. Some highlights of its financial status include smaller rent obligations compared with the industry. This is because the company owns 90% of its retail stores and 100% of its corporate headquarters, distribution and fulfillment facilities. As of Jan 28, 2022, the company's long-term debt and finance lease liabilities (including subordinate debentures) remained flat at $521 million sequentially. The company’s debt-to-capitalization ratio of 0.24 compares favorably with the prior quarter’s 0.24.
However, stiff competition, higher wages and raw material price inflation are concerning. Also, the company has been witnessing elevated SG&A expenses for the past few quarters, which have been denting the bottom line to some extent. The persistence of the trend may partly affect the company’s profitability.
Nonetheless, investors are optimistic about the company’s share repurchases and dividend payments. In fourth-quarter fiscal 2022, it repurchased $24.3 million of Class A common stock under its existing repurchase program. As of Jan 28, it had shares worth $175.4 million remaining under its February 2022 plan.
Dillard’s board recently approved its quarterly dividend of 20 cents per share on the Class A and Class B common stock, which is payable on May 1, 2023, to shareholders of record as of Mar 31, 2023.
Other Stocks to Consider
Here are three other top-ranked stocks to consider — Urban Outfitters URBN, Levi Strauss & Co. LEVI and Tapestry TPR.
Urban Outfitters, a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts products, currently sports a Zacks Rank #1 (Strong Buy). URBN has a long-term earnings growth rate of 18%. Shares of URBN have gained 10.2% in the past year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2023 sales and EPS suggests growth of 4.3% and 41.7%, respectively, from the year-ago period’s reported levels. It has a trailing four-quarter negative surprise of 7.1%, on average.
Levi Strauss, a retailer of jeans, casual wear and related accessories for men, women and children, currently carries a Zacks Rank #2 (Buy). LEVI has an expected EPS growth rate of 6.3% for three to five years. Shares of LEVI have declined 7.8% in the past year.
The Zacks Consensus Estimate for Levi Strauss’ current financial-year revenues suggests growth of 2.1% from the year-ago reported figure, while the earnings estimate indicates a decline of 11.3%. LEVI has a trailing four-quarter earnings surprise of 14.3%, on average.
Tapestry, a designer and marketer of fine accessories and gifts for women and men in the United States and internationally, currently carries a Zacks Rank #2. The expected EPS growth rate of the company for three to five years is 12.5%. Shares of TPR have gained 24.5% in the past year.
The Zacks Consensus Estimate for Tapestry’s current financial-year EPS suggests growth of 7.2% from the year-ago reported figures. TPR has a trailing four-quarter earnings surprise of 10.6%, on average.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard’s, Inc. DDS continues to display solid momentum, thanks to its sound fundamentals and impressive growth efforts. DDS boasts a robust earnings surprise trend, which continued in fourth-quarter fiscal 2022. DDS has rallied 16.6% against the industry’s decline of 30.5% and the sector’s dip of 15.6%.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS continues to display solid momentum, thanks to its sound fundamentals and impressive growth efforts. DDS boasts a robust earnings surprise trend, which continued in fourth-quarter fiscal 2022.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard’s, Inc. DDS continues to display solid momentum, thanks to its sound fundamentals and impressive growth efforts. DDS boasts a robust earnings surprise trend, which continued in fourth-quarter fiscal 2022.
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DDS boasts a robust earnings surprise trend, which continued in fourth-quarter fiscal 2022. Dillard’s, Inc. DDS continues to display solid momentum, thanks to its sound fundamentals and impressive growth efforts. DDS has rallied 16.6% against the industry’s decline of 30.5% and the sector’s dip of 15.6%.
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598774a4-fcaa-4be4-b9e0-8c20b269f5e9
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719185.0
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2023-04-04 00:00:00 UTC
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Strength Seen in Macy's (M): Can Its 7.5% Jump Turn into More Strength?
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DDS
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https://www.nasdaq.com/articles/strength-seen-in-macys-m%3A-can-its-7.5-jump-turn-into-more-strength
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nan
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nan
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Macy's M shares ended the last trading session 7.5% higher at $18.80. 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 22.8% loss over the past four weeks.
Macy’s has been benefitting from the successful execution of Polaris strategy, robust omni-channel capabilities and curated merchandise assortment. Macy's digital business remain one of the major revenue drivers. The company has been undertaking a host of initiatives to provide customers a seamless shopping experience. The stock also got an upgrade from J.P. Morgan analyst on featuring its rebranding actions.
This department store operator is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of -57.4%. Revenues are expected to be $5.13 billion, down 4.1% 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 Macy's, the consensus EPS estimate for the quarter has been revised 43.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on M 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 >>>>
Macy's is a member of the Zacks Retail - Regional Department Stores industry. One other stock in the same industry, Dillard's DDS, finished the last trading session 1% higher at $310.87. DDS has returned -14.7% over the past month.
For Dillard's, the consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $8.94. This represents a change of -33.1% from what the company reported a year ago. Dillard's currently has a Zacks Rank of #3.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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One other stock in the same industry, Dillard's DDS, finished the last trading session 1% higher at $310.87. DDS has returned -14.7% over the past month. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock in the same industry, Dillard's DDS, finished the last trading session 1% higher at $310.87. DDS has returned -14.7% over the past month.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock in the same industry, Dillard's DDS, finished the last trading session 1% higher at $310.87. DDS has returned -14.7% over the past month.
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One other stock in the same industry, Dillard's DDS, finished the last trading session 1% higher at $310.87. DDS has returned -14.7% over the past month. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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a1fd0bc5-eb2b-4eba-baf5-15bb805ddac9
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719186.0
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2023-04-03 00:00:00 UTC
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Dillard's (DDS) Outpaces Stock Market Gains: What You Should Know
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DDS
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https://www.nasdaq.com/articles/dillards-dds-outpaces-stock-market-gains%3A-what-you-should-know-5
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nan
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nan
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Dillard's (DDS) closed the most recent trading day at $310.87, moving +1.04% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Coming into today, shares of the department store operator had lost 14.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.65%, while the S&P 500 gained 3.71%.
Investors will be hoping for strength from Dillard's as it approaches its next earnings release. On that day, Dillard's is projected to report earnings of $8.94 per share, which would represent a year-over-year decline of 33.13%. Our most recent consensus estimate is calling for quarterly revenue of $1.56 billion, down 3.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.50 per share and revenue of $6.77 billion. These totals would mark changes of -30.44% and -1.45%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Dillard's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.86% higher. Dillard's is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dillard's has a Forward P/E ratio of 9.18 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.18.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DDS in the coming trading sessions, be sure to utilize Zacks.com.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's (DDS) closed the most recent trading day at $310.87, moving +1.04% from the previous trading session. To follow DDS in the coming trading sessions, be sure to utilize Zacks.com. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's (DDS) closed the most recent trading day at $310.87, moving +1.04% from the previous trading session. To follow DDS in the coming trading sessions, be sure to utilize Zacks.com.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's (DDS) closed the most recent trading day at $310.87, moving +1.04% from the previous trading session. To follow DDS in the coming trading sessions, be sure to utilize Zacks.com.
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Dillard's (DDS) closed the most recent trading day at $310.87, moving +1.04% from the previous trading session. To follow DDS in the coming trading sessions, be sure to utilize Zacks.com. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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b144b6df-9b56-43b4-bf92-cc49178fb8e6
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719187.0
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2023-04-03 00:00:00 UTC
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Dillard's Reaches Analyst Target Price
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DDS
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https://www.nasdaq.com/articles/dillards-reaches-analyst-target-price-0
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nan
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nan
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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $301.67, changing hands for $307.68/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets within the Zacks coverage universe contributing to that average for Dillard's Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $180.00. And then on the other side of the spectrum one analyst has a target as high as $380.00. The standard deviation is $106.809.
But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDS crossing above that average target price of $301.67/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $301.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Dillard's Inc.:
RECENT DDS ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 0 0 0 0
Buy ratings: 0 0 0 0
Hold ratings: 1 1 2 2
Sell ratings: 0 0 1 1
Strong sell ratings: 1 1 0 0
Average rating: 4.0 4.0 3.33 3.33
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DDS — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
Also see:
CMCT Insider Buying
Institutional Holders of EWRS
HGSD market cap history
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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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $301.67, changing hands for $307.68/share. And so with DDS crossing above that average target price of $301.67/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $301.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $301.67, changing hands for $307.68/share. But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDS crossing above that average target price of $301.67/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $301.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with DDS crossing above that average target price of $301.67/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $301.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $301.67, changing hands for $307.68/share. But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Dillard's Inc. (Symbol: DDS) have crossed above the average analyst 12-month target price of $301.67, changing hands for $307.68/share. But the whole reason to look at the average DDS price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDS crossing above that average target price of $301.67/share, investors in DDS have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $301.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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633051ef-5739-4b9b-baa7-3031fdda64a1
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719188.0
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2023-03-28 00:00:00 UTC
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Ex-Dividend Reminder: Franchise Group, Dillard's and National Fuel Gas
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DDS
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-franchise-group-dillards-and-national-fuel-gas
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/23, Franchise Group Inc (Symbol: FRG), Dillard's Inc. (Symbol: DDS), and National Fuel Gas Co. (Symbol: NFG) will all trade ex-dividend for their respective upcoming dividends. Franchise Group Inc will pay its quarterly dividend of $0.625 on 4/14/23, Dillard's Inc. will pay its quarterly dividend of $0.20 on 5/1/23, and National Fuel Gas Co. will pay its quarterly dividend of $0.475 on 4/14/23. As a percentage of FRG's recent stock price of $26.11, this dividend works out to approximately 2.39%, so look for shares of Franchise Group Inc to trade 2.39% lower — all else being equal — when FRG shares open for trading on 3/30/23. Similarly, investors should look for DDS to open 0.07% lower in price and for NFG to open 0.85% lower, all else being equal.
Below are dividend history charts for FRG, DDS, and NFG, showing historical dividends prior to the most recent ones declared.
Franchise Group Inc (Symbol: FRG):
Dillard's Inc. (Symbol: DDS):
National Fuel Gas Co. (Symbol: NFG):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 9.58% for Franchise Group Inc, 0.27% for Dillard's Inc., and 3.38% for National Fuel Gas Co..
In Tuesday trading, Franchise Group Inc shares are currently down about 0.5%, Dillard's Inc. shares are off about 0.2%, and National Fuel Gas Co. shares are down about 0.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
JDST Split History
Top Ten Hedge Funds Holding EGAN
TTS Insider Buying
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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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/23, Franchise Group Inc (Symbol: FRG), Dillard's Inc. (Symbol: DDS), and National Fuel Gas Co. (Symbol: NFG) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.07% lower in price and for NFG to open 0.85% lower, all else being equal. Below are dividend history charts for FRG, DDS, and NFG, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/23, Franchise Group Inc (Symbol: FRG), Dillard's Inc. (Symbol: DDS), and National Fuel Gas Co. (Symbol: NFG) will all trade ex-dividend for their respective upcoming dividends. Franchise Group Inc (Symbol: FRG): Dillard's Inc. (Symbol: DDS): National Fuel Gas Co. (Symbol: NFG): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DDS to open 0.07% lower in price and for NFG to open 0.85% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/23, Franchise Group Inc (Symbol: FRG), Dillard's Inc. (Symbol: DDS), and National Fuel Gas Co. (Symbol: NFG) will all trade ex-dividend for their respective upcoming dividends. Franchise Group Inc (Symbol: FRG): Dillard's Inc. (Symbol: DDS): National Fuel Gas Co. (Symbol: NFG): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DDS to open 0.07% lower in price and for NFG to open 0.85% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/30/23, Franchise Group Inc (Symbol: FRG), Dillard's Inc. (Symbol: DDS), and National Fuel Gas Co. (Symbol: NFG) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DDS to open 0.07% lower in price and for NFG to open 0.85% lower, all else being equal. Below are dividend history charts for FRG, DDS, and NFG, showing historical dividends prior to the most recent ones declared.
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5a12924a-45c4-4708-974b-ae4041a34b05
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719189.0
|
2023-03-27 00:00:00 UTC
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Dillard's (DDS) Stock Sinks As Market Gains: What You Should Know
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DDS
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https://www.nasdaq.com/articles/dillards-dds-stock-sinks-as-market-gains%3A-what-you-should-know-2
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nan
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nan
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In the latest trading session, Dillard's (DDS) closed at $300.26, marking a -0.56% move from the previous day. This change lagged the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the department store operator had lost 14.32% in the past month. In that same time, the Retail-Wholesale sector lost 1.16%, while the S&P 500 gained 0.25%.
Dillard's will be looking to display strength as it nears its next earnings release. On that day, Dillard's is projected to report earnings of $8.94 per share, which would represent a year-over-year decline of 33.13%. Our most recent consensus estimate is calling for quarterly revenue of $1.56 billion, down 3.2% from the year-ago period.
DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. These results would represent year-over-year changes of -30.44% and -1.45%, respectively.
Investors should also note any recent changes to analyst estimates for Dillard's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 13.79% higher within the past month. Dillard's is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Dillard's's current valuation metrics, including its Forward P/E ratio of 9.01. For comparison, its industry has an average Forward P/E of 9.01, which means Dillard's is trading at a no noticeable deviation to the group.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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In the latest trading session, Dillard's (DDS) closed at $300.26, marking a -0.56% move from the previous day. DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Dillard's (DDS) closed at $300.26, marking a -0.56% move from the previous day. DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Dillard's (DDS) closed at $300.26, marking a -0.56% move from the previous day. DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Dillard's (DDS) closed at $300.26, marking a -0.56% move from the previous day. DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ed3adaa3-38b8-4cf8-bd60-23690526a855
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719190.0
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2023-03-26 00:00:00 UTC
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Guru Fundamental Report for DDS
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DDS
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https://www.nasdaq.com/articles/guru-fundamental-report-for-dds
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nan
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nan
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating using this strategy is 94% 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.
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.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of DILLARD'S INC
DDS Guru Analysis
DDS Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice 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.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, DDS rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for DILLARD'S INC (DDS).
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Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Below is Validea's guru fundamental report for DILLARD'S INC (DDS). Of the 22 guru strategies we follow, DDS rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry.
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63770ca7-0232-4fd8-a944-697c004f2538
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719191.0
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2023-03-22 00:00:00 UTC
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Dillard's Breaks Below 200-Day Moving Average - Notable for DDS
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DDS
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https://www.nasdaq.com/articles/dillards-breaks-below-200-day-moving-average-notable-for-dds
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nan
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nan
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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $312.09, changing hands as low as $310.23 per share. Dillard's Inc. shares are currently trading off about 2.3% on the day. The chart below shows the one year performance of DDS shares, versus its 200 day moving average:
Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $311.72.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
Also see:
Utilities Dividend Stock List
DNZ Options Chain
BAY Historical Stock Prices
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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $312.09, changing hands as low as $310.23 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $311.72. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Utilities Dividend Stock List DNZ Options Chain BAY Historical Stock Prices 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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $312.09, changing hands as low as $310.23 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $311.72. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Utilities Dividend Stock List DNZ Options Chain BAY Historical Stock Prices 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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $312.09, changing hands as low as $310.23 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $311.72. Free Report: Top 8%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Utilities Dividend Stock List DNZ Options Chain BAY Historical Stock Prices 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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In trading on Wednesday, shares of Dillard's Inc. (Symbol: DDS) crossed below their 200 day moving average of $312.09, changing hands as low as $310.23 per share. The chart below shows the one year performance of DDS shares, versus its 200 day moving average: Looking at the chart above, DDS's low point in its 52 week range is $193 per share, with $417.86 as the 52 week high point — that compares with a last trade of $311.72. Dillard's Inc. shares are currently trading off about 2.3% on the day.
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3837d539-aa64-4405-b1db-84992cb3d471
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719192.0
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2023-03-20 00:00:00 UTC
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Dillard's (DDS) Outpaces Stock Market Gains: What You Should Know
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DDS
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https://www.nasdaq.com/articles/dillards-dds-outpaces-stock-market-gains%3A-what-you-should-know-4
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nan
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nan
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In the latest trading session, Dillard's (DDS) closed at $321.32, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.89% gain on the day. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.
Heading into today, shares of the department store operator had lost 21.94% over the past month, lagging the Retail-Wholesale sector's loss of 5.62% and the S&P 500's loss of 3.9% in that time.
Dillard's will be looking to display strength as it nears its next earnings release. In that report, analysts expect Dillard's to post earnings of $8.94 per share. This would mark a year-over-year decline of 33.13%. Meanwhile, our latest consensus estimate is calling for revenue of $1.56 billion, down 3.2% from the prior-year quarter.
DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. These results would represent year-over-year changes of -30.44% and -1.45%, respectively.
Investors might also notice recent changes to analyst estimates for Dillard's. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 29.39% higher within the past month. Dillard's is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Dillard's has a Forward P/E ratio of 9.48 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 9.48.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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In the latest trading session, Dillard's (DDS) closed at $321.32, marking a +1.22% move from the previous day. DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Dillard's (DDS) closed at $321.32, marking a +1.22% move from the previous day.
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In the latest trading session, Dillard's (DDS) closed at $321.32, marking a +1.22% move from the previous day. DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DDS's full-year Zacks Consensus Estimates are calling for earnings of $33.50 per share and revenue of $6.77 billion. In the latest trading session, Dillard's (DDS) closed at $321.32, marking a +1.22% move from the previous day. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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d8c8296a-7130-4e44-b792-080553649b50
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719193.0
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2023-03-17 00:00:00 UTC
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RSI Alert: Dillard's Now Oversold
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DDS
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https://www.nasdaq.com/articles/rsi-alert%3A-dillards-now-oversold
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DDS entered into oversold territory, changing hands as low as $319 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Dillard's Inc., the RSI reading has hit 29.0 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 34.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.25% based upon the recent $325.45 share price.
A bullish investor could look at DDS's 29.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DDS is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out what 9 other oversold dividend stocks you need to know about »
Also see:
AMH Videos
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AGM Insider Buying
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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A bullish investor could look at DDS's 29.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DDS entered into oversold territory, changing hands as low as $319 per share.
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Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DDS entered into oversold territory, changing hands as low as $319 per share. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.25% based upon the recent $325.45 share price.
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Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DDS entered into oversold territory, changing hands as low as $319 per share. Indeed, DDS's recent annualized dividend of 0.8/share (currently paid in quarterly installments) works out to an annual yield of 0.25% based upon the recent $325.45 share price.
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Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DDS is its dividend history. Dillard's Inc. (Symbol: DDS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Dillard's Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DDS entered into oversold territory, changing hands as low as $319 per share.
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d688b958-b4f0-4930-9cd1-d2bdea24a57b
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719194.0
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2023-03-14 00:00:00 UTC
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Big 5 Sporting Goods Sports a 12% Dividend But...
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DDS
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https://www.nasdaq.com/articles/big-5-sporting-goods-sports-a-12-dividend-but...
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nan
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nan
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Regional sporting goods retailer Big 5 Sporting Goods Corporation (NASDAQ: BGFV) stock has fallen since its $41.33 high in November 2021 as both top, and bottom lines continue to shrink. The company had a big surge during the post-pandemic reopening as team sports and live events resumed. However, 2022 was a challenging year for comps as inflationary pressures and economic uncertainty caused consumers to tighten their discretionary spending habits. These headwinds are expected to continue moving forward. Big 5 continues to experience normalization as the top and bottom deflate. This makes the dividend yield grow at the cost of shrinking share prices.
Sticking Out Like a Sore Thumb
Amongst the sports retailers, Big 5 sticks out like a sore thumb with its underperformance. The sports retailing industry has been predominantly strong heading into 2023. Big 5 has fallen (50%) in the past year while peers have seen double-digit gains. It continues to vastly underperform sports retailers like DICK’S Sporting Goods Inc. (NYSE: DKS) up 33%, Dilliard’s Inc. (NYSE: DDS) up 30%, Hibbett Inc. (NASDAQ: HIBB) up 38%, and Foot Locker Inc. (NYSE: FL) up 38% in the past year.
Big 5 could be getting squeezed out by its peers. The company issued downside guidance for Q4 2022 earnings estimates on Jan. 17, 2023. It lowered EPS estimates to $0.07 to $0.08 versus the $0.13 analyst estimate and way below its previous forecast of $0.29 at the end of Q2 2022.
Shrinkage Continues
On Feb. 28, 2022, Big 5 released its fiscal third-quarter 2022 results for the quarter ending September 2022. The company reported an earnings-per-share (EPS) profit of $0.08, beating estimates by $0.01. Net income was $1.7 million compared to $19.9 million in the year-ago period. Revenues fell (-9.7%) year-over-year (YoY) to $238.3 million, down from $273.4 million in the year-ago period. Same-store sales dropped (-13.2%) YoY. Q4 merchandise margins fell (129 bps) YoY but still remain up 300 bps compared to Q4 2019.
Big 5 CEO Steven Miller commented, “Looking at our current trending, while our seasonal winter products have performed well in the first quarter to date, macroeconomic conditions have continued to impact our customers’ discretionary spending.” The company will continue prioritizing margins and remaining nimble to combat inflationary pressures.
Is the Dividend in Jeopardy?
The over 12% dividend yield looks tempting, but revenue growth continues to normalize, falling nearly (10%). As EPS also shrinks, it depletes the company's cash with the hefty dividend payout. If EPS continues to fall, Big 5 may have to slash its dividend. However, it still pays the $0.25 per share dividend as of the March 10, 2023, ex-dividend date.
Weekly Descending Triangle Breakdown
The weekly candlestick chart on BGFV forms a second lower descending triangle. A descending triangle is characterized by having a flat bottom with sequentially lower highs intersecting trendlines at the apex. Shares are expected to collapse through the lower flat trendline or break out through the falling diagonal trendline.
This weekly descending triangle commenced after peaking at $12.27 in November 2022. BGFV fell for the next four weeks, reaching a low of $8.08. It triggered a weekly market structure low (MSL) bounce through $9.02 to peak at $10.52 in January 2023.
Every weekly candle made lower highs on the bounce attempts, eventually causing shares to fall back down to retest the flat bottom trendline at $8.12 again. The weekly stochastic has crossed down to test the 20-band.
The weekly exponential moving average (EMA) resistance continues to fall at $9.87, followed by the weekly 50-period MA resistance at $11.18. Pullback support levels are at $7.46, $6.82, $6.32, and $5.45.
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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It continues to vastly underperform sports retailers like DICK’S Sporting Goods Inc. (NYSE: DKS) up 33%, Dilliard’s Inc. (NYSE: DDS) up 30%, Hibbett Inc. (NASDAQ: HIBB) up 38%, and Foot Locker Inc. (NYSE: FL) up 38% in the past year. However, 2022 was a challenging year for comps as inflationary pressures and economic uncertainty caused consumers to tighten their discretionary spending habits. Big 5 CEO Steven Miller commented, “Looking at our current trending, while our seasonal winter products have performed well in the first quarter to date, macroeconomic conditions have continued to impact our customers’ discretionary spending.” The company will continue prioritizing margins and remaining nimble to combat inflationary pressures.
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It continues to vastly underperform sports retailers like DICK’S Sporting Goods Inc. (NYSE: DKS) up 33%, Dilliard’s Inc. (NYSE: DDS) up 30%, Hibbett Inc. (NASDAQ: HIBB) up 38%, and Foot Locker Inc. (NYSE: FL) up 38% in the past year. Regional sporting goods retailer Big 5 Sporting Goods Corporation (NASDAQ: BGFV) stock has fallen since its $41.33 high in November 2021 as both top, and bottom lines continue to shrink. Sticking Out Like a Sore Thumb Amongst the sports retailers, Big 5 sticks out like a sore thumb with its underperformance.
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It continues to vastly underperform sports retailers like DICK’S Sporting Goods Inc. (NYSE: DKS) up 33%, Dilliard’s Inc. (NYSE: DDS) up 30%, Hibbett Inc. (NASDAQ: HIBB) up 38%, and Foot Locker Inc. (NYSE: FL) up 38% in the past year. Regional sporting goods retailer Big 5 Sporting Goods Corporation (NASDAQ: BGFV) stock has fallen since its $41.33 high in November 2021 as both top, and bottom lines continue to shrink. Big 5 CEO Steven Miller commented, “Looking at our current trending, while our seasonal winter products have performed well in the first quarter to date, macroeconomic conditions have continued to impact our customers’ discretionary spending.” The company will continue prioritizing margins and remaining nimble to combat inflationary pressures.
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It continues to vastly underperform sports retailers like DICK’S Sporting Goods Inc. (NYSE: DKS) up 33%, Dilliard’s Inc. (NYSE: DDS) up 30%, Hibbett Inc. (NASDAQ: HIBB) up 38%, and Foot Locker Inc. (NYSE: FL) up 38% in the past year. Regional sporting goods retailer Big 5 Sporting Goods Corporation (NASDAQ: BGFV) stock has fallen since its $41.33 high in November 2021 as both top, and bottom lines continue to shrink. Revenues fell (-9.7%) year-over-year (YoY) to $238.3 million, down from $273.4 million in the year-ago period.
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934cd74a-9681-494e-859f-e0c88e9c8bbc
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719195.0
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2023-02-28 00:00:00 UTC
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Validea Motley Fool Strategy Daily Upgrade Report - 2/28/2023
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DDS
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https://www.nasdaq.com/articles/validea-motley-fool-strategy-daily-upgrade-report-2-28-2023
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nan
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nan
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Motley Fool changed from 72% to 75% 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 operates through two segments: the operation of retail department stores and a general contracting construction company. It operates approximately 277 Dillard's stores, including 28 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. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), whose business includes constructing and remodeling stores for the Company. The Company's merchandise selections include its lines of exclusive brand merchandise, such as Antonio Melani, Gianni Bini, GB, Roundtree & Yorke and Daniel Cremieux. Its retail stores are located primarily in shopping malls and open-air centers throughout 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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of DILLARD'S INC
DDS Guru Analysis
DDS Fundamental Analysis
DR HORTON INC (DHI) is a large-cap value stock in the Construction Services industry. The rating according to our strategy based on Motley Fool changed from 59% to 72% 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: D.R. Horton, Inc. is a homebuilding company. The Company is engaged in the acquisition and development of land and the construction and sale of residential homes. Its segments include homebuilding, Forestar lot development, financial services, and rental operations. Its homebuilding business operates in 106 markets across 33 states. Its Forestar lot development segment operates in 53 markets across 21 states. Its financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company's homebuilding markets. Its rental segment consists of multi-family and single-family rental operations. The multi-family rental operations develop, construct, lease and sell residential rental properties. The single-family rental operations primarily construct and lease single-family homes within a community and then market each community for a bulk sale of rental homes. Its brands include Emerald Homes, Express Homes and Freedom Homes.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of DR HORTON INC
DHI Guru Analysis
DHI Fundamental Analysis
UNITED STATES LIME & MINERALS INC (USLM) is a small-cap growth stock in the Construction - Raw Materials industry. The rating according to our strategy based on Motley Fool changed from 65% to 79% 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: United States Lime & Minerals, Inc. is a manufacturer of lime and limestone products and supplying primarily the construction, industrial, metals, environmental, roof shingle manufacturers, agriculture and oil and gas services industries. The Company's construction industry includes highway, road and building contractors. Industrial includes paper and glass manufacturers. Metals industry include steel producers. Environmental industry includes municipal sanitation and water treatment facilities and flue gas treatment processes. The Company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma and Texas through its wholly owned subsidiaries, Arkansas Lime Company, ART Quarry TRS LLC, Colorado Lime Company, Mill Creek Dolomite, LLC, Texas Lime Company, U.S. Lime Company, U.S. Lime Company Shreveport, U.S. Lime Company St. Clair and U.S. Lime Company.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of UNITED STATES LIME & MINERALS INC
USLM Guru Analysis
USLM Fundamental Analysis
NATHAN'S FAMOUS, INC. (NATH) is a small-cap growth stock in the Restaurants industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% 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: Nathan's Famous, Inc. is a licensor, wholesaler and retailer of products marketed under its Nathans brand, including its Nathans Beef Hot Dogs. The Company's segments include Branded Product Program, Product licensing, and Restaurant operations. The Branded Product Program segment is engaged in the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators. The Product licensing segment includes royalties, from licensing a range of its branded products, including its hot dogs, sausage and corned beef products, frozen French fries and additional products, through retail grocery channels and club stores throughout the United States. The Restaurant operations segment is engaged in the sale of its products at Company-owned restaurants and earns fees and royalties from its franchised restaurants, including its virtual kitchens. Its products are marketed for sale in approximately 79,000 locations.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of NATHAN'S FAMOUS, INC.
NATH Guru Analysis
NATH Fundamental Analysis
PEOPLES BANCORP OF NORTH CAROLINA, INC. (PEBK) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 63% to 76% 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: Peoples Bancorp of North Carolina, Inc. is a holding company for Peoples Bank (the Bank). The Bank is a state-chartered commercial bank serving the citizens and business interests of the Catawba Valley and surrounding communities. The Bank has a diversified loan portfolio, with no foreign loans and few agricultural loans. The Bank's loan portfolio consists of construction and land development loans, single-family residential loans, commercial real estate loans and commercial loans. The Bank operates approximately 17 banking offices, located in Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Claremont, Hiddenite, Hickory, Charlotte, Cornelius, Mooresville, Raleigh, and Cary, North Carolina. The Bank also operates loan production offices in Charlotte, Denver, Salisbury and Winston-Salem North Carolina. The Bank's subsidiaries include Peoples Investment Services, Inc., Real Estate Advisory Services, Inc., Community Bank Real Estate Solutions, LLC and PB Real Estate Holdings, LLC.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: FAIL
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of PEOPLES BANCORP OF NORTH CAROLINA, INC.
PEBK Guru Analysis
PEBK Fundamental Analysis
FIRST COMMUNITY BANKSHARES INC (FCBC) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 63% to 76% 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: First Community Bankshares, Inc. is a financial holding company. The Bank provides banking products and services to individual and commercial customers through, its wholly owned subsidiary, First Community Bank (the Bank). The Bank offers wealth management andinvestment advicethrough its Trust Division and wholly owned subsidiary First Community Wealth Management (FCWM). Its products include demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans and lines of credit; various credit card, debit card, and automated teller machine card services; corporate and personal trust services, and investment management services. The Bank provides loans into three segments commercial loans, consumer real estate loans, and consumer and other loans. Commercial loans segment consists of loans to small and mid-size industrial, commercial, and service companies.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of FIRST COMMUNITY BANKSHARES INC
FCBC Guru Analysis
FCBC Fundamental Analysis
ICICI BANK LTD (ADR) (IBN) is a large-cap growth stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 65% to 72% 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: ICICI Bank Limited (the Bank) is a banking company. The Bank is engaged in providing a range of banking and financial services including commercial banking and treasury operations. The Bank's business segments include Retail Banking, Wholesale Banking, Treasury, and Other Banking. The Bank provides a range of products, which includes savings account, women's account, senior citizen account, current accounts, credit cards, home loan, personal loan, car loan, gold loan, fixed deposit, recurring deposit, life insurance, and general insurance. It provides a range of Internet banking services, which includes pay bills, raise service request, and make transfers. It also offers a range of mobile banking services, which includes iMobile Pay, short message service (SMS) banking, Call to Pay, and immediate payment service (IMPS). Its general insurance products include health insurance, travel insurance, home insurance, two wheeler insurance, and car insurance.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: FAIL
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of ICICI BANK LTD (ADR)
IBN Guru Analysis
IBN Fundamental Analysis
CLIMB GLOBAL SOLUTIONS INC (CLMB) is a small-cap growth stock in the Computer Hardware industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% 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: Climb Global Solutions, Inc., formerly Wayside Technology Group, Inc. is an information technology (IT) distribution and solutions company. The Company's segments include Distribution segment, which distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide under the name Climb Channel Solutions; and Solutions segment, which is a cloud solutions provider and value-added reseller of software, hardware, and services to customers worldwide under the names TechXtend and Grey Matter. It provides cloud technology solutions through its Climb, TechXtend, Grey Matter and Cloud Know How operating segments. Climb is a specialty technology distributor focused on data canter and cloud-based products. TechXtend is a value-added reseller of software, hardware and services for United States and Canadian corporations, and academic institutions. Grey Matter is a United Kingdom-based software reseller and cloud service provider.
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.
PROFIT MARGIN: FAIL
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: PASS
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of CLIMB GLOBAL SOLUTIONS INC
CLMB Guru Analysis
CLMB Fundamental Analysis
FIRST BUSINESS FINANCIAL SERVICES INC (FBIZ) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 65% to 76% 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: First Business Financial Services, Inc. is a bank holding company. The Company is engaged in the commercial banking business through its bank subsidiary, First Business Bank (the Bank). It operates through the Bank and First Business Specialty Finance, LLC. The Bank operates as a business bank, which delivers a full line of commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. Its products and services include those for business banking, private wealth and bank consulting. It also offers commercial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, small business administration lending and servicing, treasury management services, and company retirement plans. Its private wealth management services include trust and estate administration, financial planning, investment management, consumer lending and private banking.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of FIRST BUSINESS FINANCIAL SERVICES INC
FBIZ Guru Analysis
FBIZ Fundamental Analysis
BANCO MACRO SA (ADR) (BMA) is a mid-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 65% to 72% 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: Banco Macro SA is an Argentina-based public company that offers traditional banking products and services to companies, including those operating in regional economies, and individuals, thus strengthening its goal to operate as a multiservice bank. Through other companies in the group, the Company also renders services as trustee agent and director and manager of mutual funds, as well as stock exchange services. The Company began the process of acquiring entities, assets and liabilities as part of the privatization of provincial banks and other banking institutions. The Company and Worldline Argentina SA entered into a joint venture agreement with Siemens Itron Business Servicies SA, to be jointly controlled by both companies, for the purpose of facilitating the development of a tax management data processing center, modernizing the existing tax collection systems and processes used by the Province of Salta, and managing and recovering municipal taxes and fees.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of BANCO MACRO SA (ADR)
BMA Guru Analysis
BMA Fundamental Analysis
TEXAS PACIFIC LAND CORP (TPL) is a large-cap growth stock in the Misc. Financial Services industry. The rating according to our strategy based on Motley Fool changed from 61% to 72% 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: Texas Pacific Land Corporation is a landowner in the state of Texas with approximately 880,000 acres of land in West Texas, with most of its ownership concentrated in the Permian Basin. The Company's segments include Land and Resource Management and Water Services and Operations. The Land and Resource Management segment encompasses the business of managing approximately, surface acres of land and its oil and gas royalty interests in West Texas. The revenue streams of this segment consist primarily of oil and gas royalties, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing full-service water offerings to operators in the Permian Basin through Texas Pacific Water Resources LLC (TPWR). These full-service water offerings include, water sourcing, produced water gathering/treatment, infrastructure development, disposal solutions, water tracking, analytics and well testing services.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of TEXAS PACIFIC LAND CORP
TPL Guru Analysis
TPL Fundamental Analysis
CIVITAS RESOURCES INC (CIVI) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Motley Fool changed from 61% to 72% 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: Civitas Resources, Inc. is a carbon-neutral oil and gas producer. The Company is engaged in the acquisition, development, and production of oil and associated liquids-rich natural gas in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg Basin (the DJ Basin) of Colorado. It operates a total of approximately 2,838 gross producing wells, of which 2,330 were horizontal. Its total position consists of approximately 769,900 gross (536,700 net) acres. Its midstream assets provide gathering, treating, and storage for its operated production.
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.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of CIVITAS RESOURCES INC
CIVI Guru Analysis
CIVI Fundamental Analysis
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
About Validea: Validea is aninvestment researchservice 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.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis DR HORTON INC (DHI) is a large-cap value stock in the Construction Services industry. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis DR HORTON INC (DHI) is a large-cap value stock in the Construction Services industry. The Bank provides a range of products, which includes savings account, women's account, senior citizen account, current accounts, credit cards, home loan, personal loan, car loan, gold loan, fixed deposit, recurring deposit, life insurance, and general insurance.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis DR HORTON INC (DHI) is a large-cap value stock in the Construction Services industry. The Company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma and Texas through its wholly owned subsidiaries, Arkansas Lime Company, ART Quarry TRS LLC, Colorado Lime Company, Mill Creek Dolomite, LLC, Texas Lime Company, U.S. Lime Company, U.S. Lime Company Shreveport, U.S. Lime Company St. Clair and U.S. Lime Company.
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DILLARD'S INC (DDS) is a mid-cap value stock in the Retail (Department & Discount) industry. Detailed Analysis of DILLARD'S INC DDS Guru Analysis DDS Fundamental Analysis DR HORTON INC (DHI) is a large-cap value stock in the Construction Services industry. The Bank is engaged in providing a range of banking and financial services including commercial banking and treasury operations.
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2023-02-28 00:00:00 UTC
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Is Vident U.S. Equity Strategy ETF (VUSE) a Strong ETF Right Now?
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DDS
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https://www.nasdaq.com/articles/is-vident-u.s.-equity-strategy-etf-vuse-a-strong-etf-right-now
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident U.S. Equity Strategy ETF (VUSE) is a smart beta exchange traded fund launched on 01/22/2014.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Vident Financial, VUSE has amassed assets over $491.46 million, making it one of the larger ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Vident Core U.S. Equity Fund Index.
The Vident U.S. Quality Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.50% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 22.20% of the portfolio. Consumer Discretionary and Financials round out the top three.
When you look at individual holdings, First Solar Inc (FSLR) accounts for about 1.04% of the fund's total assets, followed by Dillards Inc (DDS) and Sanmina Corporation (SANM).
Its top 10 holdings account for approximately 7.23% of VUSE's total assets under management.
Performance and Risk
The ETF has gained about 5.51% so far this year and is down about -0.86% in the last one year (as of 02/28/2023). In the past 52-week period, it has traded between $37.13 and $46.78.
The fund has a beta of 1.14 and standard deviation of 29.20% for the trailing three-year period, which makes VUSE a medium risk choice in this particular space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident U.S. Equity Strategy ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.19 billion in assets, iShares Core S&P U.S. Value ETF has $13.07 billion. DFAT has an expense ratio of 0.29% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vident U.S. Equity Strategy ETF (VUSE): ETF Research Reports
Dillard's, Inc. (DDS) : Free Stock Analysis Report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Sanmina Corporation (SANM) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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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When you look at individual holdings, First Solar Inc (FSLR) accounts for about 1.04% of the fund's total assets, followed by Dillards Inc (DDS) and Sanmina Corporation (SANM). Click to get this free report Vident U.S. Equity Strategy ETF (VUSE): ETF Research Reports Dillard's, Inc. (DDS) : Free Stock Analysis Report First Solar, Inc. (FSLR) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident U.S. Equity Strategy ETF (VUSE) is a smart beta exchange traded fund launched on 01/22/2014.
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Click to get this free report Vident U.S. Equity Strategy ETF (VUSE): ETF Research Reports Dillard's, Inc. (DDS) : Free Stock Analysis Report First Solar, Inc. (FSLR) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, First Solar Inc (FSLR) accounts for about 1.04% of the fund's total assets, followed by Dillards Inc (DDS) and Sanmina Corporation (SANM). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident U.S. Equity Strategy ETF (VUSE) is a smart beta exchange traded fund launched on 01/22/2014.
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Click to get this free report Vident U.S. Equity Strategy ETF (VUSE): ETF Research Reports Dillard's, Inc. (DDS) : Free Stock Analysis Report First Solar, Inc. (FSLR) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, First Solar Inc (FSLR) accounts for about 1.04% of the fund's total assets, followed by Dillards Inc (DDS) and Sanmina Corporation (SANM). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident U.S. Equity Strategy ETF (VUSE) is a smart beta exchange traded fund launched on 01/22/2014.
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Click to get this free report Vident U.S. Equity Strategy ETF (VUSE): ETF Research Reports Dillard's, Inc. (DDS) : Free Stock Analysis Report First Solar, Inc. (FSLR) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, First Solar Inc (FSLR) accounts for about 1.04% of the fund's total assets, followed by Dillards Inc (DDS) and Sanmina Corporation (SANM). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident U.S. Equity Strategy ETF (VUSE) is a smart beta exchange traded fund launched on 01/22/2014.
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924e6410-9226-4992-8988-8fc50192c5e5
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719197.0
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2023-02-24 00:00:00 UTC
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Previewing Macy's and American Eagle Before Earnings
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DDS
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https://www.nasdaq.com/articles/previewing-macys-and-american-eagle-before-earnings
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nan
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nan
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Earnings season is undoubtedly one of the most critical periods for stocks, with companies finally breaking the silence and revealing what’s transpired behind closed curtains.
Many companies have reported thus far, with many scheduled to do the same in the upcoming weeks.
Macy’s M and American Eagle Outfitters AEO are slated to unveil their quarterly results within the next week. Macy’s will report on March 2nd, whereas American Eagle Outfitters will report on March 1st.
How do the companies stack up heading into their releases? We can use results from a peer, Dillard’s DDS, as a small gauge. Let’s take a closer look.
Dillard’s Q4
Dillard’s posted strong quarterly results, exceeding the Zacks Consensus EPS Estimate by more than 60% and reflecting the company’s eleventh consecutive bottom line beat.
Quarterly revenue totaled $2.1 billion, modestly ahead of our consensus estimate and growing 0.7% year-over-year.
Regarding the full fiscal year, the company’s total retail sales increased 5% from FY21, and comparable store sales also saw nice growth, again up 5% year-over-year.
Further, ending inventory climbed 4% year-over-year, and operating expenses of $1.6 billion totaled 24.4% of sales compared to 23.7% in FY21.
American Eagle Outfitters
Quarterly Estimates –
Analysts have been bullish for AEO’s quarter to be reported, with seven upward earnings estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $0.30 suggests a 14% year-over-year pullback in earnings.
Image Source: Zacks Investment Research
Our consensus revenue estimate stands at $1.5 billion, suggesting a decline of 2.5% from the year-ago quarter.
Quarterly Performance –
AEO posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 80% and reporting sales 3.3% ahead of expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
It’s worth noting that the recent double-beat snapped a streak of negative surprises.
Image Source: Zacks Investment Research
Macy’s
Quarterly Estimates –
Analysts have been bearish for M’s quarter to be reported, with six negative earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $1.57 suggests a 36% pullback in earnings year-over-year.
Image Source: Zacks Investment Research
In addition, the company is forecasted to have generated $8.2 billion in sales throughout the quarter, down 5% from year-ago revenue of $8.7 billion.
Quarterly Performance
Macy’s boasts a stellar earnings track record, exceeding both earnings and revenue estimates in 12 consecutive quarters.
Just in its latest release, M penciled in a sizable 170% bottom line beat and reported sales 1% ahead of expectations.
Image Source: Zacks Investment Research
Putting Everything Together
Earnings season continues to unravel, with an extensive list of companies delivering quarterly prints daily.
We’ve received results from many companies so far, and soon, we’ll hear from Macy’s M and American Eagle Outfitters AEO.
A peer, Dillard’s DDS, has delivered its quarterly results already, with the company posting better-than-expected results.
Heading into their releases, Macy’s is a Zacks Rank #3 (Hold), and American Eagle Outfitters is a Zacks Rank #2 (Buy).
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Macy's, Inc. (M) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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We can use results from a peer, Dillard’s DDS, as a small gauge. A peer, Dillard’s DDS, has delivered its quarterly results already, with the company posting better-than-expected results. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here. We can use results from a peer, Dillard’s DDS, as a small gauge. A peer, Dillard’s DDS, has delivered its quarterly results already, with the company posting better-than-expected results.
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Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here. We can use results from a peer, Dillard’s DDS, as a small gauge. A peer, Dillard’s DDS, has delivered its quarterly results already, with the company posting better-than-expected results.
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We can use results from a peer, Dillard’s DDS, as a small gauge. A peer, Dillard’s DDS, has delivered its quarterly results already, with the company posting better-than-expected results. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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5cff9d16-8053-4fad-a5e3-9baa2b5e557c
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719198.0
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2023-02-24 00:00:00 UTC
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Why Dillard's Stock Dropped 12.3% This Week
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DDS
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https://www.nasdaq.com/articles/why-dillards-stock-dropped-12.3-this-week
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nan
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nan
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What happened
Dillard's Inc. (NYSE: DDS) saw its stock price fall 12.3% this week from last Friday's close through noon EST today, according to S&P Global Market Intelligence. The stock is trading at about $357 per share, up 10.4% year to date.
All of the major market indexes were down this week, as the S&P 500 fell 2.7%, the Dow Jones Industrial Average plunged 3%, and the Nasdaq Composite tumbled 3.3% as of Friday at noon EST.
So what
Retailer Dillard's has been pretty resilient over the past year amid the headwinds of inflation and a slowing economy. In its fiscal fourth quarter ended Jan. 28, 2023, Dillard's had $2.16 billion in net sales, which were basically flat compared to the year-ago period. Net income was down about 10% for the period, year over year, to $289 million, or $16.89 per share, on higher expenses and cost of sales.
It had a retail gross margin of 38.7% in the quarter, which was the second highest Q4 for the company, but it was down from a record 41.4% for the prior-year Q4. While sales during the holiday season were weaker than expected, markdowns in January led to a surge in sales that boosted its numbers.
For the full 52-week period ended Jan. 28, net sales were up 5.6% from the previous period to $6.87 billion, while net income was up 3.5% to $892 million, or $50.81 per share, over that same period.
The stock price fell on the Feb. 21 earnings release as the department store chain beat earnings projections for the quarter but missed on revenue. It also announced that it was closing three stores in the first quarter in Florida, Arizona, and Nebraska.
Now what
Dillard's decline may also have to do with a downgrade this week from JPMorgan Chase analyst Matthew Boss, who lowered the firm's price target significantly, reported the Fly. Boss reduced the target from $345 per share to $286 per share and gave it an underweight rating based on a constrained outlook for sales growth, given the economic environment and the continuing decline of mall traffic.
Dillard's did announce plans to open a store at the Empire Mall in Sioux Falls, South Dakota in the spring of 2024. This would be the first store in South Dakota and the 30th state that Dillard's has a store in. But unfortunately, strong economic headwinds persist for the stock right now.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
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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What happened Dillard's Inc. (NYSE: DDS) saw its stock price fall 12.3% this week from last Friday's close through noon EST today, according to S&P Global Market Intelligence. All of the major market indexes were down this week, as the S&P 500 fell 2.7%, the Dow Jones Industrial Average plunged 3%, and the Nasdaq Composite tumbled 3.3% as of Friday at noon EST. Now what Dillard's decline may also have to do with a downgrade this week from JPMorgan Chase analyst Matthew Boss, who lowered the firm's price target significantly, reported the Fly.
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What happened Dillard's Inc. (NYSE: DDS) saw its stock price fall 12.3% this week from last Friday's close through noon EST today, according to S&P Global Market Intelligence. In its fiscal fourth quarter ended Jan. 28, 2023, Dillard's had $2.16 billion in net sales, which were basically flat compared to the year-ago period. For the full 52-week period ended Jan. 28, net sales were up 5.6% from the previous period to $6.87 billion, while net income was up 3.5% to $892 million, or $50.81 per share, over that same period.
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What happened Dillard's Inc. (NYSE: DDS) saw its stock price fall 12.3% this week from last Friday's close through noon EST today, according to S&P Global Market Intelligence. 10 stocks we like better than Dillard's When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 8, 2023 JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company.
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What happened Dillard's Inc. (NYSE: DDS) saw its stock price fall 12.3% this week from last Friday's close through noon EST today, according to S&P Global Market Intelligence. Net income was down about 10% for the period, year over year, to $289 million, or $16.89 per share, on higher expenses and cost of sales. This would be the first store in South Dakota and the 30th state that Dillard's has a store in.
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def88eee-70fd-432c-a99c-aadf391aa14a
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719199.0
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2023-02-22 00:00:00 UTC
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Dillard's (DDS) Surpasses Q4 Earnings & Revenue Estimates
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DDS
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https://www.nasdaq.com/articles/dillards-dds-surpasses-q4-earnings-revenue-estimates
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nan
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nan
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Dillard's Inc. DDS posted impressive fourth-quarter fiscal 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate. This marked the eighth straight quarter of a top line beat and 10th straight quarter of bottom line beat. Results gained from better inventory management and consumer demand.
Adjusted earnings of $14.50 per share significantly surpassed the Zacks Consensus Estimate of $8.85. However, the bottom line declined 7.5% from the year-ago quarter's $15.68 per share.
Total revenues of $2,127 million increased 0.7% from the prior-year quarter and beat the Zacks Consensus Estimate of $2,111 million. Also, the figure came ahead of our estimate of $2,064.3 million.
Total retail sales (excluding CDI Contractors, LLC) remained almost flat year over year to $2,069 million. Comparable store sales also remained flat year over year. The company witnessed robust sales in cosmetics and ladies’ apparel. On the flip side, home and furniture was the weakest performing category.
The retail gross margin contracted 270 basis points (bps) to 38.7% from the year-ago quarter. On a consolidated basis, the gross margin of 37.7% reflects a 310-bps contraction from 40.8% in the prior-year quarter. This is mainly due to higher markdowns stemming from soft sales at the beginning of the quarter and during the holiday season.
Dillard's consolidated SG&A expenses (as a percentage of sales) expanded 70 bps to 21.6% from the prior-year quarter's 26.5%. In dollar terms, SG&A expenses (operating expenses) grew 4% to $458.4 million.
The retail operating expense rate expanded 90 bps to 22%. In dollar terms, retail operating expenses grew 4% to $456.3 million.
Shares of this Zacks Rank #4 (Sell) have declined 9.8% in the past three months against the industry's growth of 1.5%.
Image Source: Zacks Investment Research
Financial Details
Dillard's ended the quarter with cash and cash equivalents of $650.3 million, long-term debt of $321.3 million, and total shareholders' equity of $1,610.4 million. The company provided $948.3 million of cash through operating activities. Capital expenditure for fiscal 2023 is likely to be $150 million, up from the year-ago figure of $120 million.
The company repurchased $24.3 million of Class A common stock under its existing repurchase program. As of Jan 28, it has shares worth $175.4 million remaining under its February 2022 plan.
Store Update
DDS announced the opening of one store at The Empire Mall in Sioux Falls, SD, in spring 2024. It also intends to close three stores in Santa Rosa Mall, FL; Conestoga Mall, NE; and Metrocenter Mall, AZ. That said, DDS currently operates 247 full-line Dillard’s stores, and 27 clearance stores in 29 states and on dillards.com.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote
Outlook
For fiscal 2023, Dillard’s expects depreciation and amortization of $180 million compared with the prior year’s reported figure of $188 million. Net interest income is likely to be $11 million compared with the prior year’s expenses of $32 million.
Stocks to Consider
Here are three better-ranked stocks to consider — Urban Outfitters URBN, Arhaus ARHS and American Eagle Outfitters AEO.
Urban Outfitters, a leading lifestyle product and services company, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 18%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year revenues suggests growth of 5% from the year-ago reported figure.
Arhaus, which operates as a lifestyle brand and premium retailer in the home furnishing market, carries a Zacks Rank #2 at present. The expected EPS growth rate for three to five years is 16.1%.
The Zacks Consensus Estimate for Arhaus’ revenues and EPS suggests growth of 54% and 26.1%, respectively, from the year-ago reported figure. Arhaus has a trailing four-quarter earnings surprise of 112%, on average.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently carries a Zacks Rank of 2. AEO delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 1.3% and 58.9%, respectively, from the year-ago reported figures.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Arhaus, Inc. (ARHS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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Dillard's Inc. DDS posted impressive fourth-quarter fiscal 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate. Store Update DDS announced the opening of one store at The Empire Mall in Sioux Falls, SD, in spring 2024. That said, DDS currently operates 247 full-line Dillard’s stores, and 27 clearance stores in 29 states and on dillards.com.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted impressive fourth-quarter fiscal 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate. Store Update DDS announced the opening of one store at The Empire Mall in Sioux Falls, SD, in spring 2024.
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Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here. Dillard's Inc. DDS posted impressive fourth-quarter fiscal 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate. Store Update DDS announced the opening of one store at The Empire Mall in Sioux Falls, SD, in spring 2024.
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Dillard's Inc. DDS posted impressive fourth-quarter fiscal 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate. Store Update DDS announced the opening of one store at The Empire Mall in Sioux Falls, SD, in spring 2024. That said, DDS currently operates 247 full-line Dillard’s stores, and 27 clearance stores in 29 states and on dillards.com.
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f51460ad-591b-4f2c-893c-a19c11d00048
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