Dillards Inc. (NYSE:DDS) is trading at $302.37. Last week, the stock gained 20.78% after losing 22.66% a week earlier. The pricing is certainly highly volatile. We think that investors just realized the stock is a gem in the market.
Dillards has an EPS of $48.91, which is expected to grow by more than 14% this year. Such EPS levels are rare and difficult to find. It is also clear that Dillards is the growth stock to watch. From this analysis, the PE currently stands at 11.43.
Profitability indicators are also wildly strong. The ROE stands at 62.64%. The ROA is 26.66%. Such high return ratios are an indication that Dillards is an excellent value stock.
The next earnings release for the stock is expected in the third week of August. Sales revenues can be expected to spike compared to the last two years. There is a possibility that the stock will beat expectations.
Assessment of the PEG ratio of 0.78 indicates that the price of $302 could be significantly discounted. The target price for the stock based on this ratio is $387. Consequently, buying the stock is strongly recommended.
Dillards is bullish as trend projects price with 95% accuracy
Source – TradingView
Technical analysis shows that investors can reliably use the trend to inform investing decisions on Dillards. The channel predicts price movements with 95% accuracy. Based on the trend, the price target would be above $360 by the next earnings.
Summary
Dillards is a strong buy. The recommendation is based on reliable technical analysis and solid fundamental strengths. The price target by the next earnings release is $360 to $387.
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