Dillard’s, Inc. (NYSE:DDS) has seemingly delayed store expansion plans this year, in favor of initiatives aimed at gross margin improvements. Indeed, product margins have improved of late on a year-over-year basis, with the gain flowing to the bottom line. Thanks also to repurchases, earnings are trending around 20% higher versus the prior year. Importantly, comparable-store sales remain steady to slightly up.
The shares’ forward P/E multiple is 10.1 at this juncture. Its rise has lagged that of the S&P 500 index. As such, this may be a good opportunity to reap gains from a company with rapid earnings growth prospects.
Keep an eye on these stocks as they report earnings for the most recent quarter. Scheduled earnings release dates are: Wal-Mart Stores, Inc. (NYSE:WMT), Aug. 15; Macy’s, Inc. (NYSE:M), Aug. 14; The TJX Companies, Inc. (NYSE:TJX), Aug. 20; Dillard’s, Inc. (NYSE:DDS), Aug. 14.
As a group, they are worth looking into for near-term price upside. The companies utilize cash wisely and would be good selections for most portfolios, growth, income, or long-term focused.
Damon Churchwell has no position in any stocks mentioned. The Motley Fool owns shares of Dillard’s.
The article 4 Department Stores for Your Portfolio originally appeared on Fool.com.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.