Macy's (M - Free Report) closed the most recent trading day at $35.97, moving -0.66% from the previous trading session. This change lagged the S&P 500's 0.44% loss on the day. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.26%.
Prior to today's trading, shares of the department store operator had lost 4.56% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.67% and the S&P 500's gain of 3.59% in that time.
Wall Street will be looking for positivity from M as it approaches its next earnings report date. This is expected to be November 8, 2018. On that day, M is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 43.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.44 billion, up 2.99% from the year-ago period.
M's full-year Zacks Consensus Estimates are calling for earnings of $4.02 per share and revenue of $25.32 billion. These results would represent year-over-year changes of +6.63% and +1.94%, respectively.
Investors should also note any recent changes to analyst estimates for M. 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.07% higher. M currently has a Zacks Rank of #3 (Hold).
In terms of valuation, M is currently trading at a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 12.38, which means M is trading at a discount to the group.
It is also worth noting that M currently has a PEG ratio of 1.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Regional Department Stores was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.