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Macy's (M) Likely to Beat on Q2 Earnings: Stock to Gain?
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Macy's, Inc. (M - Free Report) , one of the leading department store retailers, is slated to report second-quarter fiscal 2016 results on Aug 11. The question lingering in investors’ minds now is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the preceding three quarters, Macy's outperformed the Zacks Consensus Estimate. The company’s past performance reveals that it surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 3.9%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Likely Earnings Beat
Our proven model shows that Macy's is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at 50 cents and the Zacks Consensus Estimate is pegged at 40 cents. So the ensuing +25.00% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.
Factors Influencing this Quarter
We believe Macy’s sustained focus on price optimization, inventory management, merchandise planning and private label offering acts as the primary catalyst. In an attempt to augment sales, profitability and cash flows, the company has been taking steps such as integration of operations as well as developing its eCommerce business and Macy’s Backstage off-price business, along with the expansion of Bluemercury and online order fulfillment centers.
However, Macy’s operates in the highly competitive retail merchandise sector. A mature domestic market, lower tourist spending and cautious consumer spending continue to pose concerns.
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Lowe's Companies, Inc. (LOW - Free Report) has an Earnings ESP of +2.84% and a Zacks Rank #2 (Buy).
The Children's Place, Inc. (PLCE - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2.
Wal-Mart Stores Inc. (WMT - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Macy's (M) Likely to Beat on Q2 Earnings: Stock to Gain?
Macy's, Inc. (M - Free Report) , one of the leading department store retailers, is slated to report second-quarter fiscal 2016 results on Aug 11. The question lingering in investors’ minds now is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the preceding three quarters, Macy's outperformed the Zacks Consensus Estimate. The company’s past performance reveals that it surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 3.9%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Likely Earnings Beat
Our proven model shows that Macy's is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at 50 cents and the Zacks Consensus Estimate is pegged at 40 cents. So the ensuing +25.00% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.
Factors Influencing this Quarter
We believe Macy’s sustained focus on price optimization, inventory management, merchandise planning and private label offering acts as the primary catalyst. In an attempt to augment sales, profitability and cash flows, the company has been taking steps such as integration of operations as well as developing its eCommerce business and Macy’s Backstage off-price business, along with the expansion of Bluemercury and online order fulfillment centers.
However, Macy’s operates in the highly competitive retail merchandise sector. A mature domestic market, lower tourist spending and cautious consumer spending continue to pose concerns.
MACYS INC Price, Consensus and EPS Surprise
MACYS INC Price, Consensus and EPS Surprise | MACYS INC Quote
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Lowe's Companies, Inc. (LOW - Free Report) has an Earnings ESP of +2.84% and a Zacks Rank #2 (Buy).
The Children's Place, Inc. (PLCE - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2.
Wal-Mart Stores Inc. (WMT - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>