Will Dillard's (DDS) Stock Rise Further Post Q3 Earnings?

Dillard's, Inc. (NYSE:DDS) is well positioned to benefit from its growth strategies. Also, the recent upward estimate revisions after the company reported better-than-expected third-quarter fiscal 2017 results raise analysts’ optimism on the stock.

Driven by its strategic initiatives, Dillard's shares have gained 8% in the past six months, as against the industry’s decline of 0.4%. Additionally, a Momentum Score of A makes this Zacks Rank #3 (Hold) company a safe haven.

Let’s take a closer look for a deeper analysis.

Q3 & Favorable Estimate Revisions

The Zacks Consensus Estimate has witnessed an uptrend in the last 30 days, following the third-quarter results. For fiscal 2017, the consensus mark moved up by 18 cents to $3.50 per share and for fiscal 2018, it moved north by 40 cents to $3.46.

Dillard’s delivered robust third-quarter results, wherein both the top and bottom lines outpaced the estimates. However, its earnings and revenues declined year over year. In the meantime, increased markdowns to manage inventories have been denting the company’s margins. Nevertheless, management retained its fiscal 2017 forecasts. (Read more: Dillard's Tops Q3 Earnings & Sales, Stock Jumps 12%)

Near-Term Catalysts

As Dillard’s is a leading player among fashion apparel, cosmetics and home furnishing retailers, it offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. In fact, the company has created a niche for itself through stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service. We believe that its strategy of offering fashion-forward and trendy products acts as a catalyst for attracting more customers.

Meanwhile, this leading departmental store chain has been gaining from its omni-channel initiatives. On the store front, the company is enhancing brand relations, focusing on in-trend categories, store remodels and rewarding store personnel. In fact, some of the strategies to boost growth across its e-commerce business include improving merchandise assortments and effective inventory management. Dillard’s focus on increasing productivity and enhancing domestic operations are likely to strengthen customer base. Additionally, its constant shareholder-friendly moves are noteworthy.

Three More Stocks That Witnessed Positive Estimate Revisions Lately

Hibbett Sports Inc. (NASDAQ:HIBB) consensus mark for fourth quarter and fiscal 2018 has moved up by a penny and 12 cents to 25 cents per share and $1.42 per share, respectively, in the last 30 days. Currently, it sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar Tree, Inc. (NASDAQ:DLTR) has witnessed estimates for fourth quarter and fiscal 2017 increase from $1.80 to $1.85 and $4.66 to $4.81, respectively in the past seven days. This discount store retailer carries a Zacks Rank #2 (Buy).

Ross Stores, Inc. (NASDAQ:ROST) earnings estimates for fiscal 2017 have increased by 6 cents to $3.28 in the last 30 days. The discount store retailer holds a Zacks Rank #2.

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