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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
$4.33B$235.74-5.32%$1.33B5.63x1.24
ARKO
ARKO CORP
NASDAQ
Department Stores
$1.04B$8.520.71%$250.72M15.21x10.76
M
MACY's INC
NYSE
Department Stores
$5.15B$17.61-4.14%$3.00B3.78x3.86
KSS
KOHLS CORP
NYSE
Department Stores
$4.65B$36.18-5.39%$2.46B5.64x2.23
JWN
NORDSTROM INC
NYSE
Department Stores
$3.30B$20.68-3.59%$1.28B18.46x14.27
CBD
BRAZILIAN DISTRIBUTION CO COMPANHIA BRASILEIRA DE DISTR CBD
NYSE
Department Stores
$1.14B$4.22-0.94%$710.72M7.25x2.42

Department Store Stocks FAQ

What are the best department store stocks to buy right now in May 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 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.

2. ARKO (NASDAQ:ARKO)


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.

3. MACY's (NYSE:M)


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.

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. DILLARD's (NYSE:DDS)


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.

2. KOHLS (NYSE:KSS)


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.

3. MACY's (NYSE:M)


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.

Why are department store stocks down?

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.

What are the most undervalued department store stocks?

Based on WallStreetZen's Valuation Score, the 1 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 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.

Are department store stocks a good buy now?

33.33% of department store stocks rated by analysts are a strong buy right now. On average, analysts expect department store stocks to rise by 19.54% 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 7.91x.
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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.