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The Zacks Analyst Blog Highlights: Macy's, Amazon, J. C. Penney and Nordstrom
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For Immediate Release
Chicago, IL –November 12, 2018 – 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 (M - Free Report) , Amazon (AMZN - Free Report) , J. C. Penney and Nordstrom (JWN - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Should You Buy Macy’s (M - Free Report) Ahead of Q3 & Holiday Shopping Season?
Shares of Macy's have climbed nearly 15% over the last month as the broader market slipped in a sign that investors might expect big things from the department store giant’s Q3 financial results. Let’s take a look at some of Macy’s key estimates to help understand if M stock might be a buy ahead of earnings and what looks to be a booming holiday shopping period.
Quick Overview
Macy’s has revamped its business and boosted online sales. The company also posted its third-straight quarter of comparable store sales growth in Q2.
The retailer seems to have regained some strength at a time when many thought the likes of Amazon and other online giants would greatly harm traditional brick-and-mortar businesses. Investors should also remember that although we are waiting on Macy’s third-quarter earnings results, we are in the midst of the vital fourth quarter shopping season.
Looking ahead, the holiday shopping period is expected to surpass the $1 trillion mark for the first time, according to eMarketer. This would mark a 5.8% jump from 2017 and represent the strongest holiday spending growth since 2011.
Price Movement
We can see that Macy’s stock has dramatically underperformed its industry over the last five years. M stock’s 20% decline also looks miserable compared to the S&P 500’s 62% surge.
Investors then decided to buy the dip on the back of some signs of a possible revival over the last year. In fact, shares of M have skyrocketed nearly 90% in the past 52 weeks. Plus, shares of Macy’s closed regular trading Friday at $37.80 despite its recent positive. This marked a nearly 10% downturn from its 52-week high of $41.99 per share.
Valuation
Moving on, M stock is currently trading at 10.5X forward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry’s 13.4X and the S&P 500’s 16.8X.
Macy’s stock has traded as high as 11.6X over the last year and as low as 7.1X. Jumping back even further we can see that M’s valuation picture is hardly stretched that the moment.
Q3 Outlook
Looking ahead, our current Zacks Consensus Estimate is calling for Macy’s third-quarter revenues to pop by 2.99% to reach $5.44 billion. Plus, Macy’s Q3 comparable store sales are projected to climb 2.2%, based on our current NFM estimates. This, however, comes after comps fell 3.6% in the year-ago quarter. The department store’s full-year revenues are projected to climb 1.9% to $25.31 billion.
Meanwhile, the firm’s adjusted quarterly earnings are projected to plummet 43% to hit $0.13 per share. The company’s full-year earnings are expected to climb 6.37%.
Bottom Line
Macy’s is currently a Zacks Rank #3 (Hold) that has topped our quarterly earnings estimates in eight out of the last 10 periods. With that said, Macy’s has seen zero earnings estimate revision activity over the last 90 days. Therefore, it seems that Macy’s stock might be one to stay away from based on its Q3 earnings outlook.
Macy’s is scheduled to report its Q3 financial results before the market opens on Wednesday, November 14. Fellow department stores J. C. Penney and Nordstrom are set to report their quarterly financial results on Thursday.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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 http://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, Amazon, J. C. Penney and Nordstrom
For Immediate Release
Chicago, IL –November 12, 2018 – 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 (M - Free Report) , Amazon (AMZN - Free Report) , J. C. Penney and Nordstrom (JWN - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Should You Buy Macy’s (M - Free Report) Ahead of Q3 & Holiday Shopping Season?
Shares of Macy's have climbed nearly 15% over the last month as the broader market slipped in a sign that investors might expect big things from the department store giant’s Q3 financial results. Let’s take a look at some of Macy’s key estimates to help understand if M stock might be a buy ahead of earnings and what looks to be a booming holiday shopping period.
Quick Overview
Macy’s has revamped its business and boosted online sales. The company also posted its third-straight quarter of comparable store sales growth in Q2.
The retailer seems to have regained some strength at a time when many thought the likes of Amazon and other online giants would greatly harm traditional brick-and-mortar businesses. Investors should also remember that although we are waiting on Macy’s third-quarter earnings results, we are in the midst of the vital fourth quarter shopping season.
Looking ahead, the holiday shopping period is expected to surpass the $1 trillion mark for the first time, according to eMarketer. This would mark a 5.8% jump from 2017 and represent the strongest holiday spending growth since 2011.
Price Movement
We can see that Macy’s stock has dramatically underperformed its industry over the last five years. M stock’s 20% decline also looks miserable compared to the S&P 500’s 62% surge.
Investors then decided to buy the dip on the back of some signs of a possible revival over the last year. In fact, shares of M have skyrocketed nearly 90% in the past 52 weeks. Plus, shares of Macy’s closed regular trading Friday at $37.80 despite its recent positive. This marked a nearly 10% downturn from its 52-week high of $41.99 per share.
Valuation
Moving on, M stock is currently trading at 10.5X forward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry’s 13.4X and the S&P 500’s 16.8X.
Macy’s stock has traded as high as 11.6X over the last year and as low as 7.1X. Jumping back even further we can see that M’s valuation picture is hardly stretched that the moment.
Q3 Outlook
Looking ahead, our current Zacks Consensus Estimate is calling for Macy’s third-quarter revenues to pop by 2.99% to reach $5.44 billion. Plus, Macy’s Q3 comparable store sales are projected to climb 2.2%, based on our current NFM estimates. This, however, comes after comps fell 3.6% in the year-ago quarter. The department store’s full-year revenues are projected to climb 1.9% to $25.31 billion.
Meanwhile, the firm’s adjusted quarterly earnings are projected to plummet 43% to hit $0.13 per share. The company’s full-year earnings are expected to climb 6.37%.
Bottom Line
Macy’s is currently a Zacks Rank #3 (Hold) that has topped our quarterly earnings estimates in eight out of the last 10 periods. With that said, Macy’s has seen zero earnings estimate revision activity over the last 90 days. Therefore, it seems that Macy’s stock might be one to stay away from based on its Q3 earnings outlook.
Macy’s is scheduled to report its Q3 financial results before the market opens on Wednesday, November 14. Fellow department stores J. C. Penney and Nordstrom are set to report their quarterly financial results on Thursday.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.