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Macy's (M) Gains As Market Dips: What You Should Know
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In the latest trading session, Macy's (M - Free Report) closed at $17.62, marking a +0.46% move from the previous day. This change outpaced the S&P 500's 0.33% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Heading into today, shares of the department store operator had gained 2.39% over the past month, outpacing the Retail-Wholesale sector's loss of 11.72% and the S&P 500's loss of 11.67% in that time.
Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. In that report, analysts expect Macy's to post earnings of $0.18 per share. This would mark a year-over-year decline of 85.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.17 billion, down 4.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $24.46 billion, which would represent changes of -22.22% and +0.02%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Macy's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Macy's currently has a Forward P/E ratio of 4.25. Its industry sports an average Forward P/E of 7.7, so we one might conclude that Macy's is trading at a discount comparatively.
Also, we should mention that M has a PEG ratio of 0.35. 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 industry currently had an average PEG ratio of 0.71 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Macy's (M) Gains As Market Dips: What You Should Know
In the latest trading session, Macy's (M - Free Report) closed at $17.62, marking a +0.46% move from the previous day. This change outpaced the S&P 500's 0.33% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Heading into today, shares of the department store operator had gained 2.39% over the past month, outpacing the Retail-Wholesale sector's loss of 11.72% and the S&P 500's loss of 11.67% in that time.
Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. In that report, analysts expect Macy's to post earnings of $0.18 per share. This would mark a year-over-year decline of 85.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.17 billion, down 4.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $24.46 billion, which would represent changes of -22.22% and +0.02%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Macy's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Macy's currently has a Forward P/E ratio of 4.25. Its industry sports an average Forward P/E of 7.7, so we one might conclude that Macy's is trading at a discount comparatively.
Also, we should mention that M has a PEG ratio of 0.35. 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 industry currently had an average PEG ratio of 0.71 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.