Macy's (M) closed at $19.43 in the latest trading session, marking a -2.9% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.49%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Prior to today's trading, shares of the department store operator had gained 13.82% outpaced the Retail-Wholesale sector's gain of 13.56% and the S&P 500's gain of 12.8%.
The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. The company's upcoming EPS is projected at $0.02, signifying a 87.50% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.62 billion, up 0.52% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.11 per share and a revenue of $21.67 billion, representing changes of -9.05% and -0.45%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Macy's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Macy's is currently a Zacks Rank #3 (Hold).
Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 9.49. This denotes a discount relative to the industry average Forward P/E of 14.97.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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