In the latest trading session, Macy's (M) closed at $16.53, marking a +0.06% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Prior to today's trading, shares of the department store operator had gained 9.33% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 4.77% in that time.
M will be looking to display strength as it nears its next earnings release, which is expected to be February 25, 2020. The company is expected to report EPS of $1.84, down 32.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.19 billion, down 3.11% from the year-ago period.
M's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $24.40 billion. These results would represent year-over-year changes of -37.32% and -2.3%, respectively.
Investors might also notice recent changes to analyst estimates for M. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. M currently has a Zacks Rank of #3 (Hold).
Digging into valuation, M currently has a Forward P/E ratio of 6.3. For comparison, its industry has an average Forward P/E of 10.15, which means M is trading at a discount to the group.
Also, we should mention that M has a PEG ratio of 0.84. 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 0.93 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 51, putting it in the top 20% 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.
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 Report
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