In the latest trading session, Macy's (M) closed at $19.94, marking a +2.31% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.17%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.46%.
Shares of the department store operator have appreciated by 7.03% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 0.84%, and the S&P 500's gain of 2.38%.
The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. The company is expected to report EPS of -$0.14, down 450% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.57 billion, showing a 3.6% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.97 per share and a revenue of $21.34 billion, signifying shifts of -25.38% and -4.28%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Macy's. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Right now, Macy's possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Macy's is at present trading with a Forward P/E ratio of 9.89. For comparison, its industry has an average Forward P/E of 19.41, 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. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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