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Macy's (M) Outpaces Stock Market Gains: What You Should Know

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Macy's (M - Free Report) closed at $19.70 in the latest trading session, marking a +1.65% move from the prior day. This move outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.8%.

Heading into today, shares of the department store operator had gained 6.66% over the past month, outpacing the Retail-Wholesale sector's loss of 0.36% and the S&P 500's gain of 3.57%.

Investors will be eagerly watching for the performance of Macy's in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.16, reflecting a 500% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.57 billion, showing a 3.67% drop compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.96 per share and a revenue of $21.34 billion, indicating changes of -25.76% and -4.3%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Macy's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Within the past 30 days, our consensus EPS projection has moved 3.11% higher. Macy's presently features a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Macy's is currently exchanging hands at a Forward P/E ratio of 9.91. This represents a discount compared to its industry average Forward P/E of 19.86.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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.

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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