In the latest trading session, Macy's (M) closed at $22.87, marking a +0.44% move from the previous day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 1.11%.
Prior to today's trading, shares of the department store operator had gained 5.76% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.54% and the S&P 500's gain of 3.18% in that time.
Wall Street will be looking for positivity from M as it approaches its next earnings report date. On that day, M is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 22.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.63 billion, up 1.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $25.10 billion. These totals would mark changes of -25.6% and +0.53%, respectively, from last 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. M is currently a Zacks Rank #4 (Sell).
Digging into valuation, M currently has a Forward P/E ratio of 7.32. This represents a discount compared to its industry's average Forward P/E of 9.63.
Meanwhile, M's PEG ratio is currently 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. M's industry had an average PEG ratio of 0.98 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 6% of all 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.
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Macy's, Inc. (M) : Free Stock Analysis Report
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