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

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Macy's (M - Free Report) closed at $17.45 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.16%.

Heading into today, shares of the department store operator had lost 7.33% over the past month, lagging the Retail-Wholesale sector's gain of 2.38% and the S&P 500's gain of 3.2% in that time.

Investors will be hoping for strength from Macy's as it approaches its next earnings release. In that report, analysts expect Macy's to post earnings of $0.87 per share. This would mark a year-over-year decline of 32.56%. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, down 2.33% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $24.56 billion, which would represent changes of -13.94% and +0.43%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 1.81% lower within the past month. Macy's is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 3.82 right now. For comparison, its industry has an average Forward P/E of 5.74, which means Macy's is trading at a discount to the group.

It is also worth noting that M currently has a PEG ratio of 0.32. 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. The Retail - Regional Department Stores industry currently had an average PEG ratio of 0.6 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% 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.

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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