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Macy's (M) Outpaces Stock Market Gains: What You Should Know
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Macy's (M - Free Report) closed at $17.87 in the latest trading session, marking a +0.73% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Coming into today, shares of the department store operator had lost 6.04% in the past month. In that same time, the Retail-Wholesale sector gained 4.83%, while the S&P 500 gained 5.67%.
Investors will be hoping for strength from Macy's as it approaches its next earnings release. On that day, Macy's is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 57.41%. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, down 4.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.79 per share and revenue of $24.14 billion. These totals would mark changes of -15.4% and -1.24%, respectively, from last 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Macy's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Macy's is holding a Forward P/E ratio of 4.68. Its industry sports an average Forward P/E of 8.95, 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 0.39. 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 0.82 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 206, putting it in the bottom 19% 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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Macy's (M) Outpaces Stock Market Gains: What You Should Know
Macy's (M - Free Report) closed at $17.87 in the latest trading session, marking a +0.73% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Coming into today, shares of the department store operator had lost 6.04% in the past month. In that same time, the Retail-Wholesale sector gained 4.83%, while the S&P 500 gained 5.67%.
Investors will be hoping for strength from Macy's as it approaches its next earnings release. On that day, Macy's is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 57.41%. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, down 4.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.79 per share and revenue of $24.14 billion. These totals would mark changes of -15.4% and -1.24%, respectively, from last 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Macy's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Macy's is holding a Forward P/E ratio of 4.68. Its industry sports an average Forward P/E of 8.95, 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 0.39. 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 0.82 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 206, putting it in the bottom 19% 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.