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The most recent trading session ended with Macy's (M) standing at $11.38, reflecting a -0.26% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 5.98%. Meanwhile, the Dow lost 5.5%, and the Nasdaq, a tech-heavy index, lost 5.82%.
The department store operator's stock has dropped by 13.69% in the past month, falling short of the Retail-Wholesale sector's loss of 8.75% and the S&P 500's loss of 7.66%.
Investors will be eagerly watching for the performance of Macy's in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.14, showcasing a 48.15% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.47 billion, indicating a 7.86% decline compared to the corresponding quarter of the prior year.
M's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $21.27 billion. These results would represent year-over-year changes of -19.7% and -4.6%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Macy's. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 11.36% decrease. Macy's is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Macy's currently has a Forward P/E ratio of 5.38. For comparison, its industry has an average Forward P/E of 11.45, which means Macy's is trading at a discount to the group.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 8% 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.