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Macy's (M) Gains But Lags Market: What You Should Know

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Macy's (M - Free Report) closed the most recent trading day at $7.12, moving +1.28% from the previous trading session. This change lagged the S&P 500's 1.4% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 2.13%.

Coming into today, shares of the department store operator had gained 4.46% in the past month. In that same time, the Retail-Wholesale sector gained 1.49%, while the S&P 500 gained 4.78%.

M will be looking to display strength as it nears its next earnings release, which is expected to be September 2, 2020. In that report, analysts expect M to post earnings of -$1.94 per share. This would mark a year-over-year decline of 792.86%. Our most recent consensus estimate is calling for quarterly revenue of $3.52 billion, down 36.58% from the year-ago period.

M's full-year Zacks Consensus Estimates are calling for earnings of -$4.61 per share and revenue of $17.04 billion. These results would represent year-over-year changes of -258.42% and -30.6%, respectively.

It is also important to note the recent changes to analyst estimates for M. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. M is currently a Zacks Rank #3 (Hold).

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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