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Macy's (M) Dips More Than Broader Markets: What You Should Know

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Macy's (M - Free Report) closed the most recent trading day at $26.36, moving -1.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.15%.

Heading into today, shares of the department store operator had lost 0.15% over the past month, outpacing the Retail-Wholesale sector's loss of 2.12% and lagging the S&P 500's gain of 2.36% in that time.

Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. On that day, Macy's is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 146.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.44 billion, up 24.54% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $24.22 billion. These totals would mark changes of +320.36% and +39.6%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Macy's. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.25% higher. Macy's is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 5.49 right now. Its industry sports an average Forward P/E of 6.71, so we one might conclude that Macy's is trading at a discount comparatively.

It is also worth noting that M currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. M's industry had an average PEG ratio of 0.55 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% 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.

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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