Back to top

Image: Bigstock

Macy's (M) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Read MoreHide Full Article

Macy's (M - Free Report) closed at $20.58 in the latest trading session, marking a +1.11% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.54% for the day. Elsewhere, the Dow gained 0.81%, while the tech-heavy Nasdaq added 2.27%.

Shares of the department store operator have appreciated by 23.26% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.63%, and the S&P 500's gain of 0.29%.

Analysts and investors alike will be keeping a close eye on the performance of Macy's in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.14, reflecting a 450% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.59 billion, down 3.25% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2 per share and a revenue of $21.37 billion, signifying shifts of -24.24% and -5.62%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.05% higher. Right now, Macy's possesses a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Macy's is presently being traded at a Forward P/E ratio of 10.2. This signifies a discount in comparison to the average Forward P/E of 19.61 for its industry.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.


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