2 Ideal Stocks to Add to Your Portfolio in October

NYSE: DDS | Dillard's, Inc.  News, Ratings, and Charts

DDS – Following the announcement of a debt ceiling deal, investors appear to have gained confidence, as the major indexes closed in the green yesterday. Furthermore, as the holiday season approaches and businesses gear up for their final quarter of the year, the stock market may gain substantial traction in the coming months. To capitalize on the anticipated market momentum, quality stocks Dillard’s Inc. (DDS) and Mannatech Incorporated (MTEX) could be great additions to your portfolio.

As the U.S. Senate appears to be reaching a temporary agreement to avoid a federal debt default in the next two weeks, the major indices ended Wednesday’s session in the green. Although concerns over COVID-19, inflationary pressure, and supply chain disruptions could be far from over and may cause more volatility in the coming months, the fast-approaching holiday shopping season may boost consumer spending.

In addition, as businesses scramble to increase their investment before their yearly budgets run out, stocks are expected to see solid gains in the coming months.

Therefore, Dillard’s Inc. (DDS) and Mannatech Incorporated (MTEX) could be ideal bets as they are fundamentally well-positioned to capitalize on the seasonal tailwinds.

Dillard’s Inc. (DDS)

DDS owns retail department stores in the southeastern, southwestern, and midwestern regions of the United States. Its stores provide clothing, accessories, cosmetics, home furnishings, and other consumer items. In addition, the company also undertakes general contracting construction work.

Last month, DDS launched Nicola Bathie for Antonio Melani, the company’s latest limited-edition capsule collection, which will be sold exclusively through the Antonio Melani brand. The collection was created in partnership with Nicola Bathie McLaughlin, an internationally recognized jewelry designer and lifestyle influencer located in San Antonio.

DDS’ net sales increased 70.9% year-over-year to $1.57 billion in the second quarter that ended July 31, 2021. Its cash and cash equivalents grew 707.6% from the year-ago value to $669.5 million. The company’s net income came in at $185.7 million for this period, compared to a net loss of $8.6 million in the second quarter of 2020. Its EPS totaled $8.81, compared to a loss per share of $0.37 in the prior-year period.

The company’s EPS is expected to grow 1,245% year-over-year to $31.83 in fiscal 2021. Analysts expect DDS’ revenue to increase 45.4% year-over-year to $6.45 billion in the current year. The stock has gained 382.6% over the past year and 206.8% so far this year.

DDS’ POWR Ratings reflect this promising outlook. The company has an overall grade of B, which translates to a Buy rating in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

DDS also has an A grade for Value, Growth, and Quality. Within the A-rated Fashion & Luxury industry, it is ranked #8 out of 63 stocks.

To see additional grades for Stability, Momentum, and Sentiment, click here.

Mannatech Incorporated (MTEX)

MTEX is a global health and wellness company. It creates, markets, and distributes nutritional supplements and topical and skin care, anti-aging, and weight-control products. The company distributes its products mainly through direct sales, network marketing channels, and a website.

Last month, MTEX announced that its Board of Directors had approved a share repurchase program that will allow the company to acquire up to $1 million of its outstanding common stock. This decision demonstrates the robust financial health of the company.

For the second quarter that ended June 30, 2021, MTEX’s net sales increased 12.9% from the year-ago value to $42.50 million. Its operating income grew 81.8% year-over-year to $2.02 million. The company’s net income surged 88.4% from the prior-year quarter to $2.13 million, while its EPS increased 110.6% from the year-ago value to $0.99.

The company’s EPS is expected to grow at the rate of 17.5% per annum over the next five years. MTEX’s stock has gained 99.6% over the past year and 79.2% year-to-date.

MTEX’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall grade of A, which equates to a Strong Buy rating in our POWR Ratings system. MTEX also has an A grade for Value, Growth, and Quality. The stock is ranked #1 out of 71 stocks in the Consumer Goods industry.

Beyond the grades I have just highlighted, you can see MTEX’s grades for Sentiment, Stability, and Momentum here.


DDS shares were trading at $201.91 per share on Thursday afternoon, up $8.50 (+4.39%). Year-to-date, DDS has gained 221.35%, versus a 19.10% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
DDSGet RatingGet RatingGet Rating
MTEXGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

3 High-Yield Dividend Stocks to Boost Your Portfolio

Even though inflation appears to be cooling down, it still remains above the Fed’s 2% target. Amid ongoing geopolitical tensions, investors could consider looking into high-yield dividend stocks, Verizon Communications (VZ), Altria Group (MO), and Ares Capital (ARCC). Keep reading...

3 Fintech Stocks Revolutionizing Financial Services

Fintech is causing a revolutionary shift in the financial services market and this could be the right time to scoop up fundamentally strong fintech stocks like PayPal Holdings (PYPL), NerdWallet (NRDS), and Qifu Technology (QFIN). Read more...

3 Value Stocks With Strong Fundamentals to Buy Now

Value investing is highly favored as it focuses on purchasing undervalued stocks with solid fundamentals, providing the potential for high returns with lower risk and a disciplined, long-term approach. Therefore, it could be wise to invest in fundamentally sound, value stocks Expedia Group (EXPE), Incyte (INCY), and Albertsons Companies (ACI) for substantial long-term returns. Keep reading...

Stock Alert: Breakout or Fake Out?

The S&P 500 (SPY) officially made new highs this week. Perhaps a reason to celebrate more gains on the way...or perhaps there are signs this move is hollow leading to more downside soon on the way. To help solve this riddle, 44 year investment veteran Steve Reitmeister shares his views along with a trading plan and top picks to stay on the right side of the action. That is what Steve Reitmeister will cover in his latest commentary below. Read on for more...

Read More Stories

More Dillard's, Inc. (DDS) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All DDS News