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Best Department Store Stocks to Buy Now (2022)
Top department store stocks in 2022 ranked by overall Zen Score. See the best department store stocks to buy now, according to analyst forecasts for the department stores industry.

Industry: Department Stores
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
DDS
DILLARD's INC
NYSE
Department Stores
$4.80B$280.00-2.36%$1.42B5.72x1.22
M
MACY's INC
NYSE
Department Stores
$4.26B$15.72-0.44%$3.06B2.99x3.63
JWN
NORDSTROM INC
NYSE
Department Stores
$2.86B$17.96-2.23%$1.47B6.99x12.82
ARKO
ARKO CORP
NASDAQ
Department Stores
$1.14B$9.53-1.45%$258.72M15.37x10.61
KSS
KOHLS CORP
NYSE
Department Stores
$3.07B$26.30-2.34%$2.13B5.18x2.44
CBD
BRAZILIAN DISTRIBUTION CO COMPANHIA BRASILEIRA DE DISTR CBD
NYSE
Department Stores
$1.07B$3.97-6.37%$710.72M6.82x2.42

Department Store Stocks FAQ

What are the best department store stocks to buy right now in Sep 2022?

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

1. Dillard's (NYSE:DDS)


Dillard's (NYSE:DDS) is the top department store stock with a Zen Score of 60, which is 22 points higher than the department store industry average of 38. It passed 22 out of 38 due diligence checks and has strong fundamentals. Dillard's has seen its stock return 33.3% over the past year, overperforming other department store stocks by 27 percentage points.

Dillard's has an average 1 year price target of $266.00, a downside of -5% from Dillard's's current stock price of $280.00.

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.

2. Macy's (NYSE:M)


Macy's (NYSE:M) is the second best department store stock with a Zen Score of 40, which is 2 points higher than the department store industry average of 38. It passed 15 out of 38 due diligence checks and has average fundamentals. Macy's has seen its stock lose -32.15% over the past year, underperforming other department store stocks by -38 percentage points.

Macy's has an average 1 year price target of $25.20, an upside of 60.31% from Macy's's current stock price of $15.72.

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.

3. Nordstrom (NYSE:JWN)


Nordstrom (NYSE:JWN) is the third best department store stock with a Zen Score of 37, which is -1 points lower than the department store industry average of 38. It passed 14 out of 38 due diligence checks and has average fundamentals. Nordstrom has seen its stock lose -39.04% over the past year, underperforming other department store stocks by -45 percentage points.

Nordstrom has an average 1 year price target of $24.29, an upside of 35.22% from Nordstrom's current stock price of $17.96.

Nordstrom stock has a consensus Hold recommendation according to Wall Street analysts. Of the 15 analysts covering Nordstrom, 20% have issued a Strong Buy rating, 0% have issued a Buy, 53.33% have issued a hold, while 6.67% have issued a Sell rating, and 20% have issued a Strong Sell.

What are the department store stocks with highest dividends?

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:

1. Kohls (NYSE:KSS)


Kohls (NYSE:KSS) has an annual dividend yield of 6.65%, which is 3 percentage points higher than the department store industry average of 3.6%. 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 29.5% indicates that its high dividend yield is sustainable for the long-term.

2. Dillard's (NYSE:DDS)


Dillard's (NYSE:DDS) has an annual dividend yield of 5.64%, which is 2 percentage points higher than the department store industry average of 3.6%. 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 32.3% indicates that its high dividend yield is sustainable for the long-term.

3. Macy's (NYSE:M)


Macy's (NYSE:M) has an annual dividend yield of 3.96%, which is the same as the department store industry average of 3.6%. Macy's's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Macy's's dividend has not shown consistent growth over the last 10 years.

Macy's's dividend payout ratio of 11.7% indicates that its dividend yield is sustainable for the long-term.

Why are department store stocks down?

Department store stocks were down -2.29% in the last day, and down -3.37% over the last week.

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

What are the most undervalued department store stocks?

Based on WallStreetZen's Valuation Score, the 2 most undervalued department store stocks right now are:

1. Kohls (NYSE:KSS)


Kohls (NYSE:KSS) is the most undervalued department store stock based on WallStreetZen's Valuation Score. Kohls 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.

Kohls's stock has dropped -52.5% in the past year. It has underperformed other stocks in the department store industry by -59 percentage points.

2. Macy's (NYSE:M)


Macy's (NYSE:M) is the second most undervalued department store stock based on WallStreetZen's Valuation Score. Macy's 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.

Macy's's stock has dropped -32.15% in the past year. It has underperformed other stocks in the department store industry by -38 percentage points.

Are department store stocks a good buy now?

83.33% of department store stocks rated by analysts are a hold right now. On average, analysts expect department store stocks to rise by 3.64% over the next year.

What is the average p/e ratio of the department stores industry?

The average P/E ratio of the department stores industry is 5.87x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.