In the latest trading session, Macy's (M - Free Report) closed at $34.59, marking a +0.87% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 1.01%.
Heading into today, shares of the department store operator had gained 2.66% over the past month, outpacing the Retail-Wholesale sector's loss of 12.48% and the S&P 500's loss of 6.82% 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. The company is expected to report EPS of $0.13, down 43.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.44 billion, up 2.99% from the prior-year quarter.
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.
Investors might also notice recent changes to analyst estimates for M. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 remained stagnant. M is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, M is currently trading at a Forward P/E ratio of 8.56. This represents a discount compared to its industry's average Forward P/E of 11.35.
We can also see that M currently has a PEG ratio of 1.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.