Department store inventories were quite strong as they benefited from the reopening of the economy as foot traffic to stores rebounded strongly. Moreover, many of them have been able to increase their online sales and this part of their business is also in growth mode.
Before the pandemic, stocks at department stores were struggling. However, in the aftermath of the pandemic, conditions may have improved and the boom in digital and in-person sales may continue.
Below, we give an overview of two of the most intriguing department store stocks in Macy’s (H) and Dillard (DDS).
M
M proactively attempts to adapt to the ever-changing retail ecosystem. M implemented several key changes, including a mobile-focused strategy, loyalty program, in-store pickup, and additional features to gain new business both online and offline. After all, the enthusiasm for in-person shopping at conventional retail stores will eventually wane, shifting the spotlight once again to online sales.
M has a forward P / E ratio of 7.83. This is one of the lowest P / E ratios you’ll find, indicating that the stock is likely undervalued at $ 17.42 per share. If M appears this summer or fall, he has the potential to break through his 52-week high of $ 22.30. M has a beta of 2.08, so it will prove to be somewhat volatile if the market soars or crashes.
M has a C POWR Ratings. The stock has various POWR rating component ratings, including an A value component rating, B ratings in quality and growth components, and an F stability component rating. You can find out the pricing for M in the rest of the components of the POWR assessments such as Momentum and Sentiment by clicking here.
Of the 66 listed companies in the Fashion & Luxury space, M is ranked 40th. Investors who want to learn more about stocks in this sector can do so by clicking here.
Top analysts are bullish on M, setting an average target price of $ 19.42. This means that the stock has a potential upside of around 7.5%. The highest analyst target price for M is $ 27. The lowest analyst target price for the stock is $ 14. The average analyst target price for the stock has risen $ 12.84 over the previous 40 weeks.
DDS
DDS is a chain of department stores offering home furnishings and clothing. The company has more than 250 namesake outlets as well as more than 30 customs clearance centers in more than two dozen states. Customers can purchase merchandise from DDS via the web on the company’s website and also at its physical locations. However, it should be noted that DDS does not have a full nationwide presence as there are no DDS stores in the northeast region of the country.
DDS has a forward P / E ratio of 11.25. This is a fairly low ratio which indicates that DDS could be undervalued at $ 178.30 per share. The stock has a beta of 0.85 which means it is unlikely to make a significant move even if the market ripples significantly.
DDS has a B POWR rating, indicating that the stock is a buy. DDS has an As value in the Value and Quality components of POWR ratings as well as a Growth rating of B. You can find out DDS rates in the Momentum, Sentiment and Stability components of POWR ratings by clicking here.
Of the 66 stocks in the Fashion & Luxury space, DDS is ranked 22nd. You can read more about the stocks in this industry by clicking here.
What is the best buy?
DDS is the best buy, mainly because it has the highest POWR rating. DDS is also favored because he is ranked significantly higher in his industry than Mr.
M shares were trading at $ 16.65 per share on Friday morning, down $ 0.31 (-1.83%). Year-to-date, M has gained 48.00%, compared to a 17.79% increase in the benchmark S&P 500 over the same period.
About the Author: Patrick Ryan
Patrick Ryan has over a dozen years of investment experience, particularly in the information technology, consumer and entertainment industries. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. Following…
