Macy’s (M) ended the recent trading session at $23.21, demonstrating a +1.89% change from the preceding day’s closing price. This move outpaced the S&P 500’s daily gain of 0.38%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.9%.
Shares of the department store operator have depreciated by 7.7% over the course of the past month, underperforming the Retail-Wholesale sector’s gain of 0.77%, and the S&P 500’s gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Macy’s in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.35, showcasing a 14.63% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.81 billion, indicating a 0.09% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.19 per share and a revenue of $21.76 billion, indicating changes of -5.6% and -0.01%, respectively, from the former year.
Any recent changes to analyst estimates for Macy’s should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.07% higher within the past month. Right now, Macy’s possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Macy’s is currently being traded at a Forward P/E ratio of 10.39. This indicates a discount in contrast to its industry’s Forward P/E of 13.52.
The Retail – Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.
