In the latest trading session, Macy's (M - Free Report) closed at $35.36, marking a -1.17% move from the previous day. This move lagged the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Heading into today, shares of the department store operator had lost 10.25% over the past month, lagging the Retail-Wholesale sector's gain of 4.06% and the S&P 500's gain of 1.96% in that time.
Investors will be hoping for strength from M as it approaches its next earnings release, which 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 $4.01 per share and revenue of $25.31 billion. These results would represent year-over-year changes of +6.37% and +1.91%, respectively.
It is also important to note the recent changes to analyst estimates for M. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.76% higher within the past month. M currently has a Zacks Rank of #3 (Hold).
In terms of valuation, M is currently trading at a Forward P/E ratio of 8.93. This represents a discount compared to its industry's average Forward P/E of 12.3.
Meanwhile, M's PEG ratio is currently 1.05. 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 industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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.