Macy's (M) ended the recent trading session at $21.49, demonstrating a -5.33% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.9%.
The stock of department store operator has fallen by 2.03% in the past month, lagging the Retail-Wholesale sector's loss of 1.03% and the S&P 500's loss of 0.16%.
The investment community will be paying close attention to the earnings performance of Macy's in its upcoming release. In that report, analysts expect Macy's to post earnings of $1.55 per share. This would mark a year-over-year decline of 13.89%. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.2 per share and revenue of $21.65 billion, indicating changes of -16.67% and -2.89%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Macy's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 0.6% higher. Macy's currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Macy's is currently being traded at a Forward P/E ratio of 10.13. This denotes a discount relative to the industry average Forward P/E of 14.09.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.
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.
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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