Macy's (M) closed at $15.27 in the latest trading session, marking a -1.17% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the department store operator had lost 0.58% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.2% and the S&P 500's gain of 2.7% in that time.
Wall Street will be looking for positivity from M as it approaches its next earnings report date. This is expected to be November 21, 2019. The company is expected to report EPS of $0.04, down 85.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.35 billion, down 0.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.86 per share and revenue of $24.84 billion, which would represent changes of -31.58% and -0.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for M. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. M currently has a Zacks Rank of #2 (Buy).
Investors should also note M's current valuation metrics, including its Forward P/E ratio of 5.41. Its industry sports an average Forward P/E of 10.27, so we one might conclude that M is trading at a discount comparatively.
Meanwhile, M's PEG ratio is currently 0.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. M's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Macy's, Inc. (M) : Free Stock Analysis Report
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