Sectors & IndustriesConsumer CyclicalDepartment Stores

Best Department Store Stocks to Buy Now (2023)

Top department store stocks in 2023 ranked by overall Zen Score. See the best department store stocks to buy now, according to analyst forecasts for the department stores industry.

According to Zen Score, the 3 best department store stocks to buy right now are:

Dillard's (NYSE:DDS) is the top department store stock with a Zen Score of 55, which is 19 points higher than the department store industry average of 36. It passed 21 out of 38 due diligence checks and has strong fundamentals. Dillard's has seen its stock return 59.15% over the past year, overperforming other department store stocks by 25 percentage points.

Dillard's has an average 1 year price target of $276.00, a downside of -33.04% from Dillard's's current stock price of $412.16.

Dillard's stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Dillard's, 0% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 33.33% have issued a Sell rating, and 0% have issued a Strong Sell.

Macy's (NYSE:M) is the second best department store stock with a Zen Score of 38, which is 2 points higher than the department store industry average of 36. It passed 14 out of 38 due diligence checks and has average fundamentals. Macy's has seen its stock lose -5.71% over the past year, underperforming other department store stocks by -40 percentage points.

Macy's has an average 1 year price target of $24.20, an upside of 0.33% from Macy's's current stock price of $24.12.

Macy's stock has a consensus Hold recommendation according to Wall Street analysts. Of the 10 analysts covering Macy's, 20% have issued a Strong Buy rating, 10% have issued a Buy, 50% have issued a hold, while 20% have issued a Sell rating, and 0% have issued a Strong Sell.

Arko (NASDAQ:ARKO) is the third best department store stock with a Zen Score of 37, which is 1 points higher than the department store industry average of 36. It passed 15 out of 38 due diligence checks and has average fundamentals. Arko has seen its stock return 0.25% over the past year, underperforming other department store stocks by -34 percentage points.

Arko has an average 1 year price target of $8.83, an upside of 9.05% from Arko's current stock price of $8.10.

Arko stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Arko, 0% have issued a Strong Buy rating, 33.33% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 6 department store stocks that have issued dividends in the past year, the 3 department store stocks with the highest dividend yields are:

Kohls (NYSE:KSS) has an annual dividend yield of 5.82%, which is 3 percentage points higher than the department store industry average of 3.03%. Kohls's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Kohls's dividend has shown consistent growth over the last 10 years.

Kohls's dividend payout ratio of 41.4% indicates that its high dividend yield is sustainable for the long-term.

Dillard's (NYSE:DDS) has an annual dividend yield of 3.83%, which is 1 percentage points higher than the department store industry average of 3.03%. Dillard's's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Dillard's's dividend has shown consistent growth over the last 10 years.

Dillard's's dividend payout ratio of 1.6% indicates that its dividend yield is sustainable for the long-term.

Nordstrom (NYSE:JWN) has an annual dividend yield of 3.14%, which is the same as the department store industry average of 3.03%. Nordstrom's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Nordstrom's dividend has not shown consistent growth over the last 10 years.

Nordstrom's dividend payout ratio of 37.3% indicates that its dividend yield is sustainable for the long-term.

Department store stocks were up 1.36% in the last day, and up 7.31% over the last week.

We couldn't find a catalyst for why department store stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued department store stocks right now are:

Arko (NASDAQ:ARKO) is the most undervalued department store stock based on WallStreetZen's Valuation Score. Arko has a valuation score of 43, which is 9 points higher than the department store industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Arko's stock has gained 0.25% in the past year. It has underperformed other stocks in the department store industry by -34 percentage points.

Nordstrom (NYSE:JWN) is the second most undervalued department store stock based on WallStreetZen's Valuation Score. Nordstrom has a valuation score of 43, which is 9 points higher than the department store industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Nordstrom's stock has gained 9.07% in the past year. It has underperformed other stocks in the department store industry by -25 percentage points.

Companhia Brasileira de Distribuicao (NYSE:CBD) is the third most undervalued department store stock based on WallStreetZen's Valuation Score. Companhia Brasileira de Distribuicao has a valuation score of 43, which is 9 points higher than the department store industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Companhia Brasileira de Distribuicao's stock has dropped -10.46% in the past year. It has underperformed other stocks in the department store industry by -44 percentage points.