Macy's (M) closed the most recent trading day at $13.60, moving +1.8% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 0.21%.
Prior to today's trading, shares of the department store operator had gained 0.38% lagged the Retail-Wholesale sector's gain of 0.97% and the S&P 500's gain of 1.28%.
Analysts and investors alike will be keeping a close eye on the performance of Macy's in its upcoming earnings disclosure. The company's earnings report is set to go public on September 3, 2025. It is anticipated that the company will report an EPS of $0.19, marking a 64.15% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, down 4.02% from the year-ago period.
M's full-year Zacks Consensus Estimates are calling for earnings of $1.81 per share and revenue of $21.27 billion. These results would represent year-over-year changes of -31.44% and -4.57%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Macy's. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.57% higher. Currently, Macy's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Macy's is currently trading at a Forward P/E ratio of 7.37. For comparison, its industry has an average Forward P/E of 17.16, which means Macy's is trading at a discount to the group.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 32, this industry ranks in the top 13% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Macy's, Inc. (M): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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