Back to top

Image: Bigstock

Macy's (M) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

Macy's (M - Free Report) ended the recent trading session at $15.22, demonstrating a -1.87% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 1.05%.

Shares of the department store operator witnessed a loss of 17.81% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 7.43% and the S&P 500's loss of 5.85%.

The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. On that day, Macy's is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 15.38%. Simultaneously, our latest consensus estimate expects the revenue to be $5.04 billion, showing a 1.77% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.79 per share and a revenue of $22.71 billion, representing changes of -20.29% and -1.67%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Macy's presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Macy's is presently trading at a Forward P/E ratio of 5.55. For comparison, its industry has an average Forward P/E of 11, which means Macy's is trading at a discount to the group.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 8% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Macy's, Inc. (M) - free report >>

Published in