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Macy's (M) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Macy's (M - Free Report) closed at $16.66, marking a -1.77% move from the previous day. This change lagged the S&P 500's 1.02% gain on the day.

Coming into today, shares of the department store operator had lost 12.8% in the past month. In that same time, the Retail-Wholesale sector gained 0.19%, while the S&P 500 gained 3.01%.

Investors will be hoping for strength from M as it approaches its next earnings release. In that report, analysts expect M to post earnings of $0.13 per share. This would mark year-over-year growth of 116.05%. Our most recent consensus estimate is calling for quarterly revenue of $5 billion, up 40.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.15 per share and revenue of $22.14 billion, which would represent changes of +197.29% and +27.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for M. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. M is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, M is holding a Forward P/E ratio of 7.88. Its industry sports an average Forward P/E of 11.88, so we one might conclude that M is trading at a discount comparatively.

We can also see that M currently has a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Regional Department Stores was holding an average PEG ratio of 0.66 at yesterday's closing price.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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