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The Zacks Analyst Blog Highlights: Macy's, Dollar General, DICK'S Sporting Goods and Lowe's
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For Immediate Release
Chicago, IL – November 18, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Macy's, Inc. (M - Free Report) , Dollar General Corporation (DG - Free Report) , DICK'S Sporting Goods, Inc. (DKS - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
What to Expect When Macy's (M - Free Report) Reports Earnings This Week
Macy's is likely to register a decrease in the top line when it reports third-quarter fiscal 2020 numbers on Nov 19, before the market open. The Zacks Consensus Estimate for revenues is pegged at $3,840 million, suggesting a decline of about 25.8% from the prior-year reported figure.
In fact, the Zacks Consensus Estimate for the bottom line stands at a loss of 81 cents that was stable over the past 30 days. In the year-ago period, the company had reported earnings of 7 cents a share.
Notably, this omni-channel fashion retailer has delivered an earnings surprise of 169.4% in the last four quarters, on average.
Factors to Note
Macy's is not immune to the ill impacts of the coronavirus outbreak. The company’s third-quarter results are likely to reflect the possibility of pockets of COVID-19 resurgence and slower recovery of stores in urban areas. Further, the decline in tourism owing to the pandemic is likely to have hit the top line in the to-be-reported quarter. Also, a slower back-to-school season remains a headwind.
As the company’s stores continue to ramp up, management anticipated a higher SG&A rate in the back half of the fiscal. For the fall season, management guided SG&A rate to be low-to-mid single digit percentage points higher than the prior-year period.
However, the company’s third-quarter results are likely to somewhat reflect gains from the Polaris Strategy. The strategy includes strengthening customer relationships, expansion of assortments, accelerated digital growth, optimizing store portfolios and reducing costs.
Also, the company’s curbside-pickup services have been receiving positive responses from customers. For Backstage, management expected recovery in sales to improve in the quarter under review on stronger trends in home, casual, and basics.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy’s has a Zacks Rank #3 and an Earnings ESP of +12.65%.
Other Stocks with Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
DICK’S Sporting Goodscurrently has an Earnings ESP of +16.18% and a Zacks Rank #3.
Lowe’s Companiespresently has an Earnings ESP of +7.78% and a Zacks Rank #3.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Macy's, Dollar General, DICK'S Sporting Goods and Lowe's
For Immediate Release
Chicago, IL – November 18, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Macy's, Inc. (M - Free Report) , Dollar General Corporation (DG - Free Report) , DICK'S Sporting Goods, Inc. (DKS - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
What to Expect When Macy's (M - Free Report) Reports Earnings This Week
Macy's is likely to register a decrease in the top line when it reports third-quarter fiscal 2020 numbers on Nov 19, before the market open. The Zacks Consensus Estimate for revenues is pegged at $3,840 million, suggesting a decline of about 25.8% from the prior-year reported figure.
In fact, the Zacks Consensus Estimate for the bottom line stands at a loss of 81 cents that was stable over the past 30 days. In the year-ago period, the company had reported earnings of 7 cents a share.
Notably, this omni-channel fashion retailer has delivered an earnings surprise of 169.4% in the last four quarters, on average.
Factors to Note
Macy's is not immune to the ill impacts of the coronavirus outbreak. The company’s third-quarter results are likely to reflect the possibility of pockets of COVID-19 resurgence and slower recovery of stores in urban areas. Further, the decline in tourism owing to the pandemic is likely to have hit the top line in the to-be-reported quarter. Also, a slower back-to-school season remains a headwind.
As the company’s stores continue to ramp up, management anticipated a higher SG&A rate in the back half of the fiscal. For the fall season, management guided SG&A rate to be low-to-mid single digit percentage points higher than the prior-year period.
However, the company’s third-quarter results are likely to somewhat reflect gains from the Polaris Strategy. The strategy includes strengthening customer relationships, expansion of assortments, accelerated digital growth, optimizing store portfolios and reducing costs.
Also, the company’s curbside-pickup services have been receiving positive responses from customers. For Backstage, management expected recovery in sales to improve in the quarter under review on stronger trends in home, casual, and basics.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy’s has a Zacks Rank #3 and an Earnings ESP of +12.65%.
Other Stocks with Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Dollar General currently has an Earnings ESP of +16.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’S Sporting Goodscurrently has an Earnings ESP of +16.18% and a Zacks Rank #3.
Lowe’s Companiespresently has an Earnings ESP of +7.78% and a Zacks Rank #3.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.