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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 $15.64, moving +1.69% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 1.01%.

Coming into today, shares of the department store operator had gained 2.88% in the past month. In that same time, the Retail-Wholesale sector gained 3.42%, while the S&P 500 gained 4.31%.

Market participants will be closely following the financial results of Macy's in its upcoming release. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, down 2.56% from the year-ago period.

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 note any recent changes to analyst estimates for Macy's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Macy's presently features a Zacks Rank of #4 (Sell).

Looking at its valuation, Macy's is holding a Forward P/E ratio of 5.65. Its industry sports an average Forward P/E of 10.72, so one might conclude that Macy's is trading at a discount comparatively.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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