The latest trading session saw Macy's (M) ending at $11.43, denoting a -1.38% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.
Shares of the department store operator witnessed a loss of 7.72% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.19% and the S&P 500's loss of 0.84%.
The investment community will be paying close attention to the earnings performance of Macy's in its upcoming release. It is anticipated that the company will report an EPS of $0.14, marking a 48.15% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.47 billion, down 7.86% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $21.27 billion, demonstrating changes of -19.7% and -4.6%, respectively, from the preceding 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 company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Macy's presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Macy's is currently exchanging hands at a Forward P/E ratio of 5.46. This represents a discount compared to its industry's average Forward P/E of 12.14.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 19% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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