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 61, which is 21 points higher than the department store industry average of 40. It passed 23 out of 38 due diligence checks and has strong fundamentals. Dillard's has seen its stock return 12.58% over the past year, overperforming other department store stocks by 19 percentage points.

Dillard's has an average 1 year price target of $276.00, a downside of -14.1% from Dillard's's current stock price of $321.32.

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.

Nordstrom (NYSE:JWN) is the second best department store stock with a Zen Score of 54, which is 14 points higher than the department store industry average of 40. It passed 20 out of 38 due diligence checks and has strong fundamentals. Nordstrom has seen its stock lose -39.06% over the past year, underperforming other department store stocks by -33 percentage points.

Nordstrom has an average 1 year price target of $20.18, an upside of 25.32% from Nordstrom's current stock price of $16.10.

Nordstrom stock has a consensus Hold recommendation according to Wall Street analysts. Of the 17 analysts covering Nordstrom, 11.76% have issued a Strong Buy rating, 0% have issued a Buy, 64.71% have issued a hold, while 5.88% have issued a Sell rating, and 17.65% have issued a Strong Sell.

Macy's (NYSE:M) is the third best department store stock with a Zen Score of 38, which is -2 points lower than the department store industry average of 40. It passed 14 out of 38 due diligence checks and has average fundamentals. Macy's has seen its stock lose -30.92% over the past year, underperforming other department store stocks by -25 percentage points.

Macy's has an average 1 year price target of $23.83, an upside of 28.83% from Macy's's current stock price of $18.50.

Macy's stock has a consensus Hold recommendation according to Wall Street analysts. Of the 12 analysts covering Macy's, 16.67% have issued a Strong Buy rating, 8.33% have issued a Buy, 58.33% have issued a hold, while 16.67% 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 8.77%, which is 4 percentage points higher than the department store industry average of 4.42%. 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 -1,333.3% indicates that its high dividend yield might not be sustainable for the long-term.

Nordstrom (NYSE:JWN) has an annual dividend yield of 5.9%, which is 1 percentage points higher than the department store industry average of 4.42%. 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 49.7% indicates that its high dividend yield is sustainable for the long-term.

Dillard's (NYSE:DDS) has an annual dividend yield of 4.92%, which is the same as the department store industry average of 4.42%. Dillard's's dividend payout is not stable, having dropped more than 10% one 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 high dividend yield is sustainable for the long-term.

Department store stocks were up 0.61% in the last day, and down -3.92% 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 57, which is 19 points higher than the department store industry average of 38. It passed 4 out of 7 valuation due diligence checks.

Arko's stock has dropped -8% in the past year. It has underperformed other stocks in the department store industry by -2 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 57, which is 19 points higher than the department store industry average of 38. It passed 4 out of 7 valuation due diligence checks.

Nordstrom's stock has dropped -39.06% in the past year. It has underperformed other stocks in the department store industry by -33 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 5 points higher than the department store industry average of 38. It passed 3 out of 7 valuation due diligence checks.

Companhia Brasileira de Distribuicao's stock has dropped -43.44% in the past year. It has underperformed other stocks in the department store industry by -37 percentage points.