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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 $24.24, marking a -0.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq lost 0.47%.

Prior to today's trading, shares of the department store operator had lost 6.42% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.91% and the S&P 500's gain of 3.75% in that time.

Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. On that day, Macy's is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 102.56%. Our most recent consensus estimate is calling for quarterly revenue of $5.38 billion, up 14.25% from the year-ago period.

M's full-year Zacks Consensus Estimates are calling for earnings of $4.33 per share and revenue of $24.77 billion. These results would represent year-over-year changes of -18.46% and +1.29%, respectively.

Investors might also notice recent changes to analyst estimates for Macy's. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant within the past month. Macy's is currently a Zacks Rank #3 (Hold).

Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 5.63. Its industry sports an average Forward P/E of 8.45, so we one might conclude that Macy's is trading at a discount comparatively.

Investors should also note that M has a PEG ratio of 0.47 right now. 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 1.02 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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