Back to top

Image: Bigstock

Macy's (M) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Macy's (M - Free Report) closed at $14.80, marking a +1.02% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 1.12%.

Heading into today, shares of the department store operator had lost 1.74% over the past month, outpacing the Retail-Wholesale sector's loss of 2.54% and lagging the S&P 500's loss of 1.07% in that time.

Investors will be hoping for strength from M as it approaches its next earnings release. In that report, analysts expect M to post earnings of $0.04 per share. This would mark 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. M currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, M currently has a Forward P/E ratio of 5.13. For comparison, its industry has an average Forward P/E of 8.83, which means M is trading at a discount to the group.

Also, we should mention that M has a PEG ratio of 0.68. 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 was holding an average PEG ratio of 0.78 at yesterday's closing price.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 254, which puts it in the bottom 1% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Macy's, Inc. (M) - free report >>

Published in