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Macy's (M) Outpaces Stock Market Gains: What You Should Know
Macy's (M - Free Report) closed the most recent trading day at $23.01, moving +1.14% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 1.1%.
Coming into today, shares of the department store operator had gained 8.33% in the past month. In that same time, the Retail-Wholesale sector gained 3.05%, while the S&P 500 lost 0.01%.
Macy's will be looking to display strength as it nears its next earnings release. On that day, Macy's is projected to report earnings of $1.62 per share, which would represent a year-over-year decline of 33.88%. Meanwhile, our latest consensus estimate is calling for revenue of $8.22 billion, down 5.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.18 per share and revenue of $24.44 billion, which would represent changes of -21.28% and -0.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Macy's. 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. 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.
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 has moved 0.48% lower. Macy's is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Macy's currently has a Forward P/E ratio of 5.45. Its industry sports an average Forward P/E of 8.73, so we one might conclude that Macy's is trading at a discount comparatively.
It is also worth noting that M currently has a PEG ratio of 0.45. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.8 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 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.