Back to top

Image: Bigstock

Macy's (M) Stock Moves -0.09%: What You Should Know

Read MoreHide Full Article

The most recent trading session ended with Macy's (M - Free Report) standing at $11.57, reflecting a -0.09% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 1.43% loss on the day. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 2.43%.

Shares of the department store operator witnessed a gain of 6.83% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 2.31% and the S&P 500's loss of 1.55%.

The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. The company is scheduled to release its earnings on November 16, 2023. In that report, analysts expect Macy's to post earnings of $0.02 per share. This would mark a year-over-year decline of 96.15%. Meanwhile, our latest consensus estimate is calling for revenue of $4.78 billion, down 8.51% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $23.06 billion, which would represent changes of -37.28% and -5.67%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Macy's. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% decrease. At present, Macy's boasts a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 4.13 right now. This valuation marks a discount compared to its industry's average Forward P/E of 7.83.

Investors should also note that M has a PEG ratio of 0.34 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Regional Department Stores was holding an average PEG ratio of 0.74 at yesterday's closing price.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 211, finds itself in the bottom 17% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 Zacks.com.


See More Zacks Research for These Tickers


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


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

Published in