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 52, which is 19 points higher than the department store industry average of 33. It passed 19 out of 38 due diligence checks and has strong fundamentals. Dillard's has seen its stock lose -4.55% over the past year, overperforming other department store stocks by 5 percentage points.

Dillard's has an average 1 year price target of $330.00, a downside of -5.86% from Dillard's's current stock price of $350.55.

Dillard's stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Dillard's, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% 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 42, which is 9 points higher than the department store industry average of 33. It passed 15 out of 38 due diligence checks and has strong fundamentals. Macy's has seen its stock lose -33.42% over the past year, underperforming other department store stocks by -24 percentage points.

Macy's has an average 1 year price target of $14.11, a downside of -9.78% from Macy's's current stock price of $15.64.

Macy's stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering Macy's, 22.22% have issued a Strong Buy rating, 0% have issued a Buy, 55.56% have issued a hold, while 11.11% have issued a Sell rating, and 11.11% have issued a Strong Sell.

Nordstrom (NYSE:JWN) is the third best department store stock with a Zen Score of 31, which is -2 points lower than the department store industry average of 33. It passed 12 out of 38 due diligence checks and has average fundamentals. Nordstrom has seen its stock lose -25.23% over the past year, underperforming other department store stocks by -16 percentage points.

Nordstrom has an average 1 year price target of $15.64, an upside of 0.88% from Nordstrom's current stock price of $15.50.

Nordstrom stock has a consensus Sell recommendation according to Wall Street analysts. Of the 11 analysts covering Nordstrom, 9.09% have issued a Strong Buy rating, 0% have issued a Buy, 54.55% have issued a hold, while 9.09% have issued a Sell rating, and 27.27% have issued a Strong Sell.

Out of 4 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 8.39%, which is 3 percentage points higher than the department store industry average of 5.5%. 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 -274% indicates that its high dividend yield might not be sustainable for the long-term.

Nordstrom (NYSE:JWN) has an annual dividend yield of 4.9%, which is -1 percentage points lower than the department store industry average of 5.5%. 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 400% indicates that its high dividend yield might not be sustainable for the long-term.

Dillard's (NYSE:DDS) has an annual dividend yield of 4.52%, which is -1 percentage points lower than the department store industry average of 5.5%. 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 33.2% indicates that its dividend yield is sustainable for the long-term.

Department store stocks were up 2.09% in the last day, and up 3.38% over the last week.

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

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

Macy's (NYSE:M) is the most undervalued department store stock based on WallStreetZen's Valuation Score. Macy's has a valuation score of 71, which is 37 points higher than the department store industry average of 34. It passed 5 out of 7 valuation due diligence checks.

Macy's's stock has dropped -33.42% in the past year. It has underperformed other stocks in the department store industry by -24 percentage points.

Dillard's (NYSE:DDS) is the second most undervalued department store stock based on WallStreetZen's Valuation Score. Dillard's has a valuation score of 57, which is 23 points higher than the department store industry average of 34. It passed 4 out of 7 valuation due diligence checks.

Dillard's's stock has dropped -4.55% in the past year. It has overperformed other stocks in the department store industry by 5 percentage points.