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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 $16.63, marking a -0.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.42%.

Prior to today's trading, shares of the department store operator had lost 11.76% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.87% and the S&P 500's gain of 2.64% in that time.

Wall Street will be looking for positivity from M as it approaches its next earnings report date. The company is expected to report EPS of $0.13, up 116.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5 billion, up 40.41% from the prior-year quarter.

M's full-year Zacks Consensus Estimates are calling for earnings of $2.15 per share and revenue of $22.14 billion. These results would represent year-over-year changes of +197.29% and +27.63%, respectively.

It is also important to note the recent changes to analyst estimates for M. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. M is currently a Zacks Rank #3 (Hold).

Looking at its valuation, M is holding a Forward P/E ratio of 7.77. This represents a discount compared to its industry's average Forward P/E of 11.88.

Investors should also note that M has a PEG ratio of 0.65 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Regional Department Stores was holding an average PEG ratio of 0.65 at yesterday's closing price.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow M in the coming trading sessions, be sure to utilize Zacks.com.


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