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

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In the latest trading session, Macy's (M - Free Report) closed at $25.70, marking a +1.98% move from the previous day. This move outpaced the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.67%.

Coming into today, shares of the department store operator had gained 5.75% in the past month. In that same time, the Retail-Wholesale sector lost 4.26%, while the S&P 500 lost 5.92%.

Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. This is expected to be February 22, 2022. On that day, Macy's is projected to report earnings of $2 per share, which would represent year-over-year growth of 150%. Our most recent consensus estimate is calling for quarterly revenue of $8.42 billion, up 24.23% from the year-ago period.

Any recent changes to analyst estimates for Macy's should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.19% lower within the past month. Macy's is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Macy's is holding a Forward P/E ratio of 6.26. This represents a discount compared to its industry's average Forward P/E of 8.69.

It is also worth noting that M currently has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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