President and Portfolio Manager Barry James of James Investment Research says one of the macro trends he is seeing is the strength of the dollar. James wants to invest in companies that benefit from lower import prices and more domestic sales, and he says Dillard’s, Inc. (DDS) fits that bill.
“It’s a department store that has been hitting new highs. Management has been buying back shares. We find that consumer confidence is high, and they get the benefit of these lower import prices, so it’s really helpful for them in terms of their earnings and their earnings growth,” James says.
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James says another major trend he is seeing on the buy side also benefits Dillard’s: the drop in oil prices.
“If last year was a year of the bond, then this year is the year of the oil glut. And that translates to transportation companies, and companies that use energy in the production process. It’s really helpful to consumers, which is also helpful to Dillard’s,” James says.
