In the latest close session, Macy's (M) was down 3.34% at $22.01. This move lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 0.31%.
Coming into today, shares of the department store operator had gained 7.36% in the past month. In that same time, the Retail-Wholesale sector lost 5.31%, while the S&P 500 lost 0.76%.
Market participants will be closely following the financial results of Macy's in its upcoming release. The company's earnings per share (EPS) are projected to be $1.55, reflecting a 13.89% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.52 billion, indicating a 3.14% decrease compared to the same quarter of the previous 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Macy's. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Macy's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Macy's is presently being traded at a Forward P/E ratio of 10.16. This indicates a discount in contrast to its industry's Forward P/E of 14.71.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 6, finds itself in the top 3% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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