In the latest trading session, Macy's (M - Free Report) closed at $15.41, marking a -1.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.49%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Coming into today, shares of the department store operator had gained 1.03% in the past month. In that same time, the Retail-Wholesale sector gained 3.2%, while the S&P 500 gained 3%.
Investors will be hoping for strength from M as it approaches its next earnings release. On that day, M is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 85.19%. Our most recent consensus estimate is calling for quarterly revenue of $5.35 billion, down 0.97% from the year-ago period.
M's full-year Zacks Consensus Estimates are calling for earnings of $2.86 per share and revenue of $24.84 billion. These results would represent year-over-year changes of -31.58% and -0.51%, respectively.
Investors should also note any recent changes to analyst estimates for M. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. M currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that M has a Forward P/E ratio of 5.5 right now. For comparison, its industry has an average Forward P/E of 9.33, which means M is trading at a discount to the group.
Also, we should mention that M has a PEG ratio of 0.73. 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. M's industry had an average PEG ratio of 0.83 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 254, putting it in the bottom 1% 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.