Macy's (M - Free Report) closed at $16.05 in the latest trading session, marking a +1.07% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.13%.
Heading into today, shares of the department store operator had gained 3.79% over the past month, lagging the Retail-Wholesale sector's gain of 6.5% and the S&P 500's gain of 7.08% 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 November 21, 2019. On that day, M is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 92.59%. Meanwhile, our latest consensus estimate is calling for revenue of $5.33 billion, down 1.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $24.84 billion, which would represent changes of -32.06% and -0.51%, respectively, from the prior year.
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 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.
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 0.69% lower. M currently has a Zacks Rank of #4 (Sell).
In terms of valuation, M is currently trading at a Forward P/E ratio of 5.59. This valuation marks a discount compared to its industry's average Forward P/E of 10.92.
We can also see that M currently has a PEG ratio of 0.75. 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. The Retail - Regional Department Stores was holding an average PEG ratio of 0.92 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 219, which puts it in the bottom 15% 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.
To follow M in the coming trading sessions, be sure to utilize Zacks.com.