In the latest trading session, Macy's (M - Free Report) closed at $25.24, marking a +1.82% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the department store operator had lost 0.76% over the past month, lagging the Retail-Wholesale sector's gain of 3.97% and the S&P 500's gain of 5.93% 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 February 26, 2019. The company is expected to report EPS of $2.65, down 6.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.46 billion, down 2.36% from the year-ago period.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.8% lower within the past month. M is currently a Zacks Rank #4 (Sell).
Digging into valuation, M currently has a Forward P/E ratio of 7.57. This valuation marks a discount compared to its industry's average Forward P/E of 11.6.
We can also see that M currently has a PEG ratio of 0.89. 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 1.25 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 28% 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.