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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 $20.80, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.74%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.15%.
Heading into today, shares of the department store operator had gained 30.02% over the past month, outpacing the Retail-Wholesale sector's gain of 3.09% and the S&P 500's gain of 4.58% 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, our latest consensus estimate is calling for revenue of $5.17 billion, down 4.92% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Macy's should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Macy's is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Macy's is currently trading at a Forward P/E ratio of 4.98. For comparison, its industry has an average Forward P/E of 8.89, which means Macy's is trading at a discount to the group.
It is also worth noting that M currently has a PEG ratio of 0.42. 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. The Retail - Regional Department Stores was holding an average PEG ratio of 0.84 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 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Macy's (M) Gains As Market Dips: What You Should Know
In the latest trading session, Macy's (M - Free Report) closed at $20.80, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.74%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.15%.
Heading into today, shares of the department store operator had gained 30.02% over the past month, outpacing the Retail-Wholesale sector's gain of 3.09% and the S&P 500's gain of 4.58% 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, our latest consensus estimate is calling for revenue of $5.17 billion, down 4.92% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Macy's should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Macy's is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Macy's is currently trading at a Forward P/E ratio of 4.98. For comparison, its industry has an average Forward P/E of 8.89, which means Macy's is trading at a discount to the group.
It is also worth noting that M currently has a PEG ratio of 0.42. 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. The Retail - Regional Department Stores was holding an average PEG ratio of 0.84 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 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.