In the latest close session, Macy's (M) was up +2.26% at $21.71. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
Prior to today's trading, shares of the department store operator had lost 8.57% lagged the Retail-Wholesale sector's gain of 5.66% and the S&P 500's gain of 0.93%.
Analysts and investors alike will be keeping a close eye on the performance of Macy's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.55, marking a 13.89% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.52 billion, indicating a 3.14% decline compared to the corresponding quarter of the prior 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 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Macy's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.6% rise in the Zacks Consensus EPS estimate. Macy's is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Macy's is presently being traded at a Forward P/E ratio of 9.48. This expresses a discount compared to the average Forward P/E of 13.77 of its industry.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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