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Macy's (M) Suffers a Larger Drop Than the General Market: Key Insights

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Macy's (M - Free Report) closed the latest trading day at $19.26, indicating a -1.03% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.6%. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.92%.

Shares of the department store operator witnessed a gain of 6.57% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.07% and the S&P 500's gain of 3.56%.

The upcoming earnings release of Macy's will be of great interest to investors. The company's upcoming EPS is projected at $2.02, signifying a 7.45% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.1 billion, down 1.99% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.8% fall in the Zacks Consensus EPS estimate. Currently, Macy's is carrying a Zacks Rank of #4 (Sell).

From a valuation perspective, Macy's is currently exchanging hands at a Forward P/E ratio of 7.47. This signifies a discount in comparison to the average Forward P/E of 11.15 for its industry.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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