Macy's (M) closed the most recent trading day at $16.23, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.73% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 1.13%.
Heading into today, shares of the department store operator had lost 7.4% over the past month, lagging the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 2.95% in that time.
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 $1.95 per share, which would represent a year-over-year decline of 28.57%. Our most recent consensus estimate is calling for quarterly revenue of $8.32 billion, down 1.55% from the year-ago period.
Investors might also notice recent changes to analyst estimates for M. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 3.94% higher. M currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, M is holding a Forward P/E ratio of 6.84. For comparison, its industry has an average Forward P/E of 9.65, which means M is trading at a discount to the group.
Meanwhile, M's PEG ratio is currently 0.91. 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 0.94 at yesterday's closing price.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.