Macy's (M) closed at $20.02 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 0.17%.
The department store operator's shares have seen a decrease of 7.95% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.91% and the S&P 500's gain of 0.78%.
The upcoming earnings release of Macy's will be of great interest to investors. The company is predicted to post an EPS of $1.55, indicating a 13.89% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.52 billion, indicating a 3.14% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.2 per share and revenue of $21.65 billion, which would represent changes of -16.67% and -2.89%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.85% higher within the past month. At present, Macy's boasts a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Macy's is currently being traded at a Forward P/E ratio of 9.25. This signifies a discount in comparison to the average Forward P/E of 12.74 for its industry.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 3, placing it within the top 2% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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