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Macy's (M) Stock Moves -0.81%: What You Should Know

In the latest trading session, Macy's (M) closed at $26.85, marking a -0.81% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.54%.

Coming into today, shares of the department store operator had gained 4.88% in the past month. In that same time, the Retail-Wholesale sector lost 9.72%, while the S&P 500 lost 6.58%.

Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. The company is expected to report EPS of $1.97, up 146.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.44 billion, up 24.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.87 per share and revenue of $24.22 billion, which would represent changes of +320.36% and +39.6%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Macy's. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.01% higher. Macy's currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Macy's is holding a Forward P/E ratio of 5.56. For comparison, its industry has an average Forward P/E of 8.32, which means Macy's is trading at a discount to the group.

Meanwhile, M's PEG ratio is currently 0.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.57 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 12, putting it in the top 5% 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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