In the latest trading session, Macy's (M - Free Report) closed at $17.07, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.2%.
Coming into today, shares of the department store operator had gained 6.39% in the past month. In that same time, the Retail-Wholesale sector gained 2.91%, while the S&P 500 gained 3.25%.
M will be looking to display strength as it nears its next earnings release, which is expected to be February 25, 2020. On that day, M is projected to report earnings of $1.93 per share, which would represent a year-over-year decline of 29.3%. Our most recent consensus estimate is calling for quarterly revenue of $8.26 billion, down 2.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.72 per share and revenue of $24.49 billion, which would represent changes of -34.93% and -1.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for M. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.69% higher within the past month. M is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that M has a Forward P/E ratio of 6.31 right now. For comparison, its industry has an average Forward P/E of 9.74, which means M is trading at a discount to the group.
It is also worth noting that M currently has a PEG ratio of 0.84. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.