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Macy's (M) Gains But Lags Market: What You Should Know

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Macy's (M - Free Report) closed the latest trading day at $16.04, indicating a +1.45% change from the previous session's end. The stock lagged the S&P 500's daily gain of 1.69%. Elsewhere, the Dow gained 1.04%, while the tech-heavy Nasdaq added 2.43%.

The the stock of department store operator has fallen by 6.17% in the past month, leading the Retail-Wholesale sector's loss of 6.24% and undershooting the S&P 500's loss of 4.78%.

Investors will be eagerly watching for the performance of Macy's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 21, 2024. It is anticipated that the company will report an EPS of $0.32, marking a 23.08% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.09 billion, indicating a 0.76% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.79 per share and revenue of $22.71 billion, indicating changes of -20.29% and -1.65%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Macy's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. Macy's is currently a Zacks Rank #4 (Sell).

In terms of valuation, Macy's is currently trading at a Forward P/E ratio of 5.67. This signifies a discount in comparison to the average Forward P/E of 11.28 for its industry.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 243, finds itself in the bottom 4% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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