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The latest trading session saw Macy's (M) ending at $13.87, denoting a +0.58% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.89%.
Coming into today, shares of the department store operator had lost 13% in the past month. In that same time, the Retail-Wholesale sector lost 2.84%, while the S&P 500 lost 1.56%.
The investment community will be paying close attention to the earnings performance of Macy's in its upcoming release. The company is expected to report EPS of $1.55, down 36.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.8 billion, indicating a 3.94% decrease compared to the same quarter of the previous year.
M's full-year Zacks Consensus Estimates are calling for earnings of $2.39 per share and revenue of $22.46 billion. These results would represent year-over-year changes of -31.71% and -2.73%, respectively.
It is also important to note the recent changes to analyst estimates for Macy's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. Right now, Macy's possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Macy's is presently being traded at a Forward P/E ratio of 5.76. This indicates a discount in contrast to its industry's Forward P/E of 9.8.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.