Sectors & IndustriesConsumer CyclicalDepartment Stores

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.

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 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 79.76% over the past year, overperforming other department store stocks by 55 percentage points.

DILLARD's has an average 1 year price target of $255.00, an upside of 8.17% from DILLARD's's current stock price of $235.74.

DILLARD's stock has a consensus Sell recommendation according to Wall Street analysts. Of the 2 analysts covering DILLARD's, 0% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 50% have issued a Strong Sell.

ARKO (NASDAQ:ARKO) is the second best department store stock with a Zen Score of 39, which is 1 points higher than the department store industry average of 38. It passed 16 out of 38 due diligence checks and has average fundamentals. ARKO has seen its stock lose -20.52% over the past year, underperforming other department store stocks by -45 percentage points.

ARKO has an average 1 year price target of $13.33, an upside of 56.49% from ARKO's current stock price of $8.52.

ARKO stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering ARKO, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

MACY's (NYSE:M) is the third best department store stock with a Zen Score of 38, which is equal to the department store industry average of 38. It passed 14 out of 38 due diligence checks and has average fundamentals. MACY's has seen its stock lose -1.68% over the past year, underperforming other department store stocks by -26 percentage points.

MACY's has an average 1 year price target of $31.25, an upside of 77.46% from MACY's's current stock price of $17.61.

MACY's stock has a consensus Hold recommendation according to Wall Street analysts. Of the 8 analysts covering MACY's, 12.5% have issued a Strong Buy rating, 25% have issued a Buy, 37.5% have issued a hold, while 12.5% have issued a Sell rating, and 12.5% 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:

DILLARD's (NYSE:DDS) has an annual dividend yield of 6.68%, which is 4 percentage points higher than the department store industry average of 2.55%. 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 37.5% indicates that its high dividend yield is sustainable for the long-term.

KOHLS (NYSE:KSS) has an annual dividend yield of 3.45%, which is 1 percentage points higher than the department store industry average of 2.55%. 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 19.5% indicates that its dividend yield is sustainable for the long-term.

MACY's (NYSE:M) has an annual dividend yield of 2.6%, which is the same as the department store industry average of 2.55%. 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 9.8% indicates that its dividend yield is sustainable for the long-term.

Department store stocks were down -4.95% in the last day, and down -25.14% over the last week. KOHLS was the among the top losers in the department stores industry, dropping -5.39% yesterday.

Shares of retail companies are trading lower in sympathy with Abercrombie, which dropped following Q1 results. The company said higher-than-expected freight and product costs impacted its margins. Retail earnings this quarter have been primary negative amid supply chain issues.

Based on WallStreetZen's Valuation Score, the 1 most undervalued department store stocks right now are:

KOHLS (NYSE:KSS) is the most undervalued department store stock based on WallStreetZen's Valuation Score. KOHLS has a valuation score of 57, which is 14 points higher than the department store industry average of 43. It passed 4 out of 7 valuation due diligence checks.

KOHLS's stock has dropped -35.02% in the past year. It has underperformed other stocks in the department store industry by -59 percentage points.