Macy's (M) closed at $21.05 in the latest trading session, marking a -2.86% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.02% for the day. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.07%.
The department store operator's shares have seen an increase of 11.53% over the last month, surpassing the Retail-Wholesale sector's loss of 3.11% and the S&P 500's gain of 5.12%.
The investment community will be paying close attention to the earnings performance of Macy's in its upcoming release. The company is slated to reveal its earnings on June 3, 2026. On that day, Macy's is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 87.5%. Alongside, our most recent consensus estimate is anticipating revenue of $4.62 billion, indicating a 0.52% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.11 per share and revenue of $21.67 billion. These totals would mark changes of -9.05% and -0.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Macy's. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 remained steady. As of now, Macy's holds a Zacks Rank of #4 (Sell).
Looking at valuation, Macy's is presently trading at a Forward P/E ratio of 10.28. This represents a discount compared to its industry average Forward P/E of 13.83.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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Macy's, Inc. (M): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).