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Macy's (M) Registers a Bigger Fall Than the Market: Important Facts to Note

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Macy's (M - Free Report) closed the most recent trading day at $24.12, moving -2.45% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.82%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 2.86%.

Shares of the department store operator have appreciated by 8.61% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 3.69%, and the S&P 500's gain of 0.71%.

The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. On that day, Macy's is projected to report earnings of -$0.19 per share, which would represent a year-over-year decline of 311.11%. At the same time, our most recent consensus estimate is projecting a revenue of $4.7 billion, reflecting a 0.36% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and revenue of $21.81 billion, which would represent changes of 0% and +0.21%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Macy's. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. At present, Macy's boasts a Zacks Rank of #3 (Hold).

Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 10.65. This represents a discount compared to its industry average Forward P/E of 15.15.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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