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Macy's (M) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Macy's (M - Free Report) closed at $6.57, marking a -0.61% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.76%.

Coming into today, shares of the department store operator had gained 6.44% in the past month. In that same time, the Retail-Wholesale sector gained 9.43%, while the S&P 500 gained 6.9%.

Wall Street will be looking for positivity from M as it approaches its next earnings report date. This is expected to be September 2, 2020. The company is expected to report EPS of -$1.86, down 764.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.51 billion, down 36.7% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.55 per share and revenue of $16.96 billion. These totals would mark changes of -256.36% and -30.96%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for M. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.12% higher. M currently has a Zacks Rank of #4 (Sell).

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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