Stock Price & Analysis

Buy DDS stock as it shows potential for a rebound with attractive dividend yields, but be cautious of broader market risks.

The price prediction for DDS stock in 2025 is expected to range between $370 and $400. This forecast is based on technical analysis showing the stock trading above its 50-day moving average but below the 200-day average, indicating a neutral to bearish trend. Additionally, the stock's RSI suggests it is not oversold, and Fibonacci resistance levels around $376.75 and $383.44 may cap upside potential. The strong dividend yield and potential for special dividends provide support, balancing the technical challenges.

The S1 support level for DDS Stock is $350.74 ,The R1 resistant level for DDS Stock is $373.61.

As of the end of day on 2025-04-02, the price of DDS Stock was $346.

The target price for DDS Stock according to analyst rating is 321.67, with the highest price target at 450.00 and the lowest at 202.00. Analysts have a Moderate Sell rating on DDS Stock overall.

The market cap of DDS is $5.8B.

Analysis and Insights

Valuation Metrics:

Dillard's (DDS) current valuation metrics suggest a mixed outlook. The price-to-earnings (P/E) ratio for Q3 2025 is 9.02, rising to 12.52 in Q4, indicating moderate valuation relative to earnings. The EV/EBITDA ratio is 5.37 for Q3 and 7.62 for Q4, signaling reasonable valuation compared to earnings before interest, taxes, depreciation, and amortization. The price-to-sales (P/S) ratio is 0.85 for Q3 and 1.13 for Q4, which is relatively low, suggesting undervaluation. However, the price-to-book (P/B) ratio is 2.83 for Q3 and 4.09 for Q4, indicating a premium relative to book value.

Financial Performance:

Dillard's financial performance shows stability with total revenue of $1.45 billion for both Q3 and Q4 2025. Net income increased significantly from $124.596 million in Q3 to $214.4 million in Q4. Gross profit also rose from $587.802 million to $698.2 million, reflecting improved profitability. The return on equity (ROE) is 7.73% for Q3 and 13.48% for Q4, indicating decent returns for shareholders.

Market Sentiment and Analyst Ratings:

The stock's price is $374.98 as of March 25, 2025, with a 52-week range of $328 to $510. The Relative Strength Index (RSI) of 29.1 indicates oversold conditions, suggesting potential buying opportunities. Analyst ratings are mixed, with UBS maintaining a Strong Sell rating and a low price target, while Telsey Advisory Group has a Hold rating with a higher target.

Conclusion:

Based on the analysis, Dillard's (DDS) does not appear to be overvalued. The low P/S ratio and oversold RSI suggest potential undervaluation. However, the high P/B ratio and mixed analyst sentiment warrant caution. Investors should monitor the retail sector's health and company-specific developments.

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.

Price Prediction for DDS Stock by 2030

Based on current trends and analysis, Dillard's, Inc. (DDS) is predicted to reach a stock price of $450 to $550 by 2030. This forecast considers the company's potential recovery in the retail sector, dividend yield, and long-term growth prospects.

• Reasoning:
  • Technical Analysis: DDS stock recently fell below its 200-day moving average, indicating short-term weakness, but its RSI of 29.1 suggests oversold conditions, which could signal a rebound.
  • Fundamental Analysis: Dillard's strong balance sheet and focus on returning value to shareholders through dividends and buybacks position it well for long-term recovery.
  • Fibonacci Levels: The stock is near its S1 support level of $355.10, with potential upside to the R1 level of $376.75 in the near term.

However, risks such as macroeconomic uncertainty and competition in the retail sector could impact the stock's performance.

DDS has a total of 20200 employees.