Back to top

Image: Bigstock

Macy's (M) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Macy's (M - Free Report) closed at $23.13, marking a -1.15% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq lost 3.22%.

Heading into today, shares of the department store operator had gained 15.27% over the past month, outpacing the Retail-Wholesale sector's gain of 8.58% and the S&P 500's gain of 4.64% in that time.

Macy's will be looking to display strength as it nears its next earnings release. In that report, analysts expect Macy's to post earnings of $1.62 per share. This would mark a year-over-year decline of 33.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.22 billion, down 5.08% from the year-ago period.

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.

Investors might also notice recent changes to analyst estimates for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

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. The Zacks Consensus EPS estimate has moved 0.54% lower within the past month. Macy's is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Macy's currently has a Forward P/E ratio of 5.6. For comparison, its industry has an average Forward P/E of 8.95, 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 0.47. 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. M's industry had an average PEG ratio of 0.9 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

You can find more information on all of these metrics, and much more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Macy's, Inc. (M) - free report >>

Published in