Telsey Advisory Lifts PT on Dillard's, Inc. (DDS) Stock

Dillard’s, Inc. (NYSE:DDS) is one of the Best Consumer Cyclical Stocks to Buy According to Hedge Funds. On August 15, Telsey Advisory lifted the price objective on the company’s stock to $550 from $450, while keeping a “Market Perform” rating, as reported by The Fly. As per the analyst, the company seems to have regained the momentum after 4 consecutive quarters of healthy results. Furthermore, as per the firm, while Dillard’s, Inc. (NYSE:DDS)’s Q2 2025 results demonstrate its ability to execute well amidst the shifting macro-economic conditions, there are structural pressures in the department store landscape.

In Q2 2025, Dillard’s, Inc. (NYSE:DDS)’s total retail sales rose 1% YoY, with net income coming at $72.8 million as compared to $74.5 million. Total retail sales (which excludes CDI) for the 13 weeks ended August 2, 2025 and August 3, 2024 came in at $1.447 billion and $1.426 billion, respectively. The retail gross margin for the 13 weeks ended August 2, 2025 stood at 38.1% of sales as compared to 39.1% of sales for the 13 weeks ended August 3, 2024. As compared to Q2 2024, the retail gross margin rose moderately in shoes and in ladies’ accessories and lingerie. However, the retail gross margin declined slightly in men’s apparel and accessories and fell significantly in ladies’ apparel.

While we acknowledge the potential of DDS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.