In the latest trading session, Macy's (M - Free Report) closed at $24.98, marking a -0.4% move from the previous day. This change lagged the S&P 500's daily gain of 1.07%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 1.71%.
Heading into today, shares of the department store operator had lost 17.17% over the past month, lagging the Retail-Wholesale sector's gain of 0.66% and the S&P 500's loss of 0.58% in that time.
M will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2019. In that report, analysts expect M to post earnings of $2.65 per share. This would mark a year-over-year decline of 6.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.46 billion, down 2.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $24.97 billion, which would represent changes of +7.43% and +0.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for M. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.59% lower. M is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, M is holding a Forward P/E ratio of 6.19. This represents a discount compared to its industry's average Forward P/E of 11.18.
We can also see that M currently has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Regional Department Stores industry currently had an average PEG ratio of 1.14 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 247, putting it in the bottom 4% 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.
To follow M in the coming trading sessions, be sure to utilize Zacks.com.