Sectors & IndustriesConsumer CyclicalDepartment Stores

Best Department Store Stocks to Buy Now (2024)

Top department store stocks in 2024 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 57, which is 21 points higher than the department store industry average of 36. It passed 21 out of 38 due diligence checks and has strong fundamentals. Dillard's has seen its stock return 4.52% over the past year, underperforming other department store stocks by -1 percentage points.

Dillard's has an average 1 year price target of $287.00, a downside of -17.28% from Dillard's's current stock price of $346.97.

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.

Nordstrom (NYSE:JWN) is the second best department store stock with a Zen Score of 35, which is -1 points lower than the department store industry average of 36. It passed 13 out of 38 due diligence checks and has average fundamentals. Nordstrom has seen its stock return 53.15% over the past year, overperforming other department store stocks by 48 percentage points.

Nordstrom has an average 1 year price target of $20.90, a downside of -8.41% from Nordstrom's current stock price of $22.82.

Nordstrom stock has a consensus Sell recommendation according to Wall Street analysts. Of the 10 analysts covering Nordstrom, 0% have issued a Strong Buy rating, 0% have issued a Buy, 70% have issued a hold, while 10% have issued a Sell rating, and 20% have issued a Strong Sell.

Kohls (NYSE:KSS) is the third best department store stock with a Zen Score of 33, which is -3 points lower than the department store industry average of 36. It passed 10 out of 38 due diligence checks and has average fundamentals. Kohls has seen its stock lose -19.72% over the past year, underperforming other department store stocks by -25 percentage points.

Kohls has an average 1 year price target of $21.38, an upside of 7.36% from Kohls's current stock price of $19.91.

Kohls stock has a consensus Sell recommendation according to Wall Street analysts. Of the 8 analysts covering Kohls, 0% have issued a Strong Buy rating, 12.5% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 37.5% 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 7.53%, which is 2 percentage points higher than the department store industry average of 5.18%. 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 58.1% indicates that its high dividend yield is sustainable for the long-term.

Dillard's (NYSE:DDS) has an annual dividend yield of 6.05%, which is 1 percentage points higher than the department store industry average of 5.18%. Dillard's's dividend payout is not stable, having dropped more than 10% three 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 51.8% indicates that its high dividend yield is sustainable for the long-term.

Macy's (NYSE:M) has an annual dividend yield of 4.64%, which is -1 percentage points lower than the department store industry average of 5.18%. 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 102.7% indicates that its high dividend yield might not be sustainable for the long-term.

Department store stocks were up 0.55% in the last day, and up 1.96% 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 57, which is 20 points higher than the department store industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Macy's's stock has gained 23.6% in the past year. It has overperformed other stocks in the department store industry by 19 percentage points.

Kohls (NYSE:KSS) is the second most undervalued department store stock based on WallStreetZen's Valuation Score. Kohls has a valuation score of 43, which is 6 points higher than the department store industry average of 37. It passed 3 out of 7 valuation due diligence checks.

Kohls's stock has dropped -19.72% in the past year. It has underperformed other stocks in the department store industry by -25 percentage points.