Macy's (M) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Macy's (M) closed at $15.08, marking a -1.89% move from the previous day. This change lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.
Heading into today, shares of the department store operator had lost 16.83% over the past month, lagging the Retail-Wholesale sector's gain of 1.63% and the S&P 500's gain of 1.18% in that time.
Macy's will be looking to display strength as it nears its next earnings release. On that day, Macy's is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 57.41%. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, down 4.26% from the prior-year quarter.
M's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $24.14 billion. These results would represent year-over-year changes of -15.4% and -1.24%, respectively.
Investors should also note any recent changes to analyst estimates for Macy's. Recent revisions tend to reflect the latest 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.
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 remained stagnant. Macy's currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Macy's is holding a Forward P/E ratio of 4.05. This valuation marks a discount compared to its industry's average Forward P/E of 8.83.
Also, we should mention that M has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% 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.
To follow M in the coming trading sessions, be sure to utilize Zacks.com.
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Macy's, Inc. (M) : Free Stock Analysis Report
