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Macy's (M) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Macy's (M - Free Report) closed at $12.41, marking a -0.96% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.9%.

The department store operator's shares have seen an increase of 13.19% over the last month, surpassing the Retail-Wholesale sector's gain of 4.99% and the S&P 500's gain of 1.45%.

Analysts and investors alike will be keeping a close eye on the performance of Macy's in its upcoming earnings disclosure. The company's earnings report is set to go public on November 16, 2023. On that day, Macy's is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 96.15%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.78 billion, indicating an 8.51% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.79 per share and a revenue of $23.05 billion, indicating changes of -37.72% and -5.69%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Macy's. These revisions help to show the ever-changing nature of near-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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.81% lower. Currently, Macy's is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 4.49 right now. This expresses a discount compared to the average Forward P/E of 8.25 of its industry.

We can additionally observe that M currently boasts a PEG ratio of 0.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Regional Department Stores was holding an average PEG ratio of 0.81 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 207, putting it in the bottom 18% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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