Macy's (M) ended the recent trading session at $11.35, demonstrating a +2.07% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.52%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 0.52%.
Prior to today's trading, shares of the department store operator had lost 6.87% lagged the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 5.95%.
The upcoming earnings release of Macy's will be of great interest to investors. The company's upcoming EPS is projected at $0.18, signifying a 66.04% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.74 billion, down 4.03% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.78 per share and a revenue of $21.27 billion, indicating changes of -32.58% and -4.57%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. The Zacks Consensus EPS estimate has moved 12.03% lower within the past month. As of now, Macy's holds a Zacks Rank of #4 (Sell).
With respect to valuation, Macy's is currently being traded at a Forward P/E ratio of 6.23. This expresses a discount compared to the average Forward P/E of 13.85 of its industry.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 21% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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