Macy's (M) closed at $23.60 in the latest trading session, marking a -1.67% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.
Shares of the department store operator witnessed a gain of 9.39% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.83%, and the S&P 500's gain of 1.46%.
The upcoming earnings release of Macy's will be of great interest to investors. The company's upcoming EPS is projected at -$0.19, signifying a 311.11% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.69 billion, down 0.54% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.34 per share and revenue of $21.81 billion, indicating changes of +0.86% and +0.22%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Macy's. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Macy's currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Macy's is presently trading at a Forward P/E ratio of 10.27. Its industry sports an average Forward P/E of 14.49, so one might conclude that Macy's is trading at a discount comparatively.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Macy's, Inc. (M): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).