Why Dillard's Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store operator Dillard's (NYSE: DDS  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Dillard's and see what CAPS investors are saying about the stock right now.

Dillard's facts

   

Headquarters (founded)

Little Rock, Ark. (1938)

Market Cap

$3.9 billion

Industry

Department stores

Trailing-12-Month Revenue

$6.6 billion

Management

Chairman / CEO William Dillard, II
CFO James Freeman

Return on Equity
(average, past 3 years)

14.4%

Cash/Debt

$124.8 million / $851.9 million

Dividend Yield

0.2%

Competitors

J.C. Penney (NYSE: JCP  )

Kohl's (NYSE: KSS  )

Macy's (NYSE: M  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 61% of the 397 members who have rated Dillard's believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, adamathm, listed a few of the obstacles facing Dillard's in the New Year: "This stock has had a great run, but it's gotten too expensive. The payroll tax increase, consumer uncertainty around the budget deficit, and potential resilience at [J.C. Penney] will be major 2013 headwinds."

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