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Macy's (M) Stock Sinks As Market Gains: What You Should Know
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Macy's (M - Free Report) closed at $17.07 in the latest trading session, marking a -1.56% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.98%.
Prior to today's trading, shares of the department store operator had gained 0.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.96% and the S&P 500's gain of 4.59% in that time.
Investors will be hoping for strength from Macy's as it approaches its next earnings release. The company is expected to report EPS of $0.46, down 57.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, down 4.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $24.14 billion, which would represent changes of -15.4% and -1.24%, 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Macy's currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 4.57 right now. For comparison, its industry has an average Forward P/E of 9.37, 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 0.38. 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 0.81 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 206, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Macy's (M) Stock Sinks As Market Gains: What You Should Know
Macy's (M - Free Report) closed at $17.07 in the latest trading session, marking a -1.56% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.98%.
Prior to today's trading, shares of the department store operator had gained 0.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.96% and the S&P 500's gain of 4.59% in that time.
Investors will be hoping for strength from Macy's as it approaches its next earnings release. The company is expected to report EPS of $0.46, down 57.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, down 4.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $24.14 billion, which would represent changes of -15.4% and -1.24%, 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Macy's currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 4.57 right now. For comparison, its industry has an average Forward P/E of 9.37, 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 0.38. 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 0.81 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 206, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.