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Macy's (M) Rises Higher Than Market: Key Facts

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Macy's (M - Free Report) closed the most recent trading day at $12.21, moving +2.18% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.

Prior to today's trading, shares of the department store operator had gained 8.14% outpaced the Retail-Wholesale sector's gain of 4.28% and the S&P 500's gain of 5.35%.

The upcoming earnings release of Macy's will be of great interest to investors. The company is forecasted to report an EPS of $0.18, showcasing a 66.04% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.74 billion, down 4.03% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.78 per share and a revenue of $21.27 billion, indicating changes of -32.58% and -4.57%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Macy's. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Macy's presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Macy's is presently being traded at a Forward P/E ratio of 6.7. This signifies a discount in comparison to the average Forward P/E of 15.47 for its industry.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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