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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 at $6.07 in the latest trading session, marking a +1.34% move from the prior day. The stock lagged the S&P 500's daily gain of 2.66%. At the same time, the Dow added 2.21%, and the tech-heavy Nasdaq gained 3.57%.

Coming into today, shares of the department store operator had gained 22% in the past month. In that same time, the Retail-Wholesale sector gained 16.18%, while the S&P 500 gained 12.74%.

Investors will be hoping for strength from M as it approaches its next earnings release. On that day, M is projected to report earnings of -$1 per share, which would represent a year-over-year decline of 327.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.18 billion, down 24.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.03 per share and revenue of $20.97 billion. These totals would mark changes of -101.03% and -14.62%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for M. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 102.79% lower within the past month. M currently has a Zacks Rank of #3 (Hold).

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% 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.

To follow M in the coming trading sessions, be sure to utilize Zacks.com.


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