In the latest trading session, Macy's (M) closed at $14.91, marking a +0.47% move from the previous day. This move lagged the S&P 500's daily gain of 0.91%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 1.02%.
Coming into today, shares of the department store operator had lost 13.22% in the past month. In that same time, the Retail-Wholesale sector lost 4.73%, while the S&P 500 lost 2.74%.
Investors will be hoping for strength from M as it approaches its next earnings release. On that day, M is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 85.19%. 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 typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. M is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that M has a Forward P/E ratio of 5.19 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.25.
Meanwhile, M's PEG ratio is currently 0.69. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 249, which puts it in the bottom 3% 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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