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Macy's (M) Advances While Market Declines: Some Information for Investors

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Macy's (M - Free Report) closed the most recent trading day at $15.25, moving +0.23% from the previous trading session. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.39%.

The the stock of department store operator has fallen by 2.31% in the past month, lagging the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 2.43%.

The investment community will be paying close attention to the earnings performance of Macy's in its upcoming release. In that report, analysts expect Macy's to post earnings of $0 per share. This would mark a year-over-year decline of 100%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.74 billion, indicating a 2.56% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.72 per share and a revenue of $22.14 billion, indicating changes of -22.29% and -4.12%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has moved 0.22% lower. At present, Macy's boasts a Zacks Rank of #4 (Sell).

Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 5.58. For comparison, its industry has an average Forward P/E of 11.25, 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. This industry, currently bearing a Zacks Industry Rank of 237, finds itself in the bottom 7% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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