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Macy's (M) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Macy's (M - Free Report) closed at $22.74, marking a -0.22% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.26%.

Heading into today, shares of the department store operator had lost 9.09% over the past month, lagging the Retail-Wholesale sector's gain of 0.34% and the S&P 500's loss of 0.19% in that time.

Wall Street will be looking for positivity from M as it approaches its next earnings report date. This is expected to be May 15, 2019. On that day, M is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $5.53 billion, down 0.21% from the prior-year quarter.

M's full-year Zacks Consensus Estimates are calling for earnings of $3.10 per share and revenue of $24.98 billion. These results would represent year-over-year changes of -25.84% and +0.04%, respectively.

Investors might also notice recent changes to analyst estimates for M. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.37% lower within the past month. M is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, M currently has a Forward P/E ratio of 7.35. Its industry sports an average Forward P/E of 11.17, so we one might conclude that M is trading at a discount comparatively.

It is also worth noting that M currently has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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