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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 $26.59, moving -1.88% from the previous trading session. This change lagged the S&P 500's daily loss of 1.81%. At the same time, the Dow lost 1.47%, and the tech-heavy Nasdaq lost 0.51%.

Heading into today, shares of the department store operator had gained 1.8% over the past month, outpacing the Retail-Wholesale sector's loss of 2.51% and the S&P 500's loss of 1.84% in that time.

Investors will be hoping for strength from Macy's as it approaches its next earnings release, which is expected to be February 22, 2022. In that report, analysts expect Macy's to post earnings of $1.97 per share. This would mark 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.

It is also important to note the recent changes to analyst estimates for Macy's. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Macy's is currently a Zacks Rank #2 (Buy).

Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 6.65. This valuation marks a discount compared to its industry's average Forward P/E of 9.18.

Investors should also note that M has a PEG ratio of 0.55 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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