The latest trading session saw Macy's (M) ending at $15.08, denoting a -0.98% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.35%.

The department store operator's stock has dropped by 7.13% in the past month, falling short of the Retail-Wholesale sector's gain of 6.17% and the S&P 500's gain of 1.02%.

Investors will be eagerly watching for the performance of Macy's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.55, signifying a 36.73% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.79 billion, down 4.03% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for Macy's. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. Macy's is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Macy's currently has a Forward P/E ratio of 6.24. This valuation marks a discount compared to its industry's average Forward P/E of 10.45.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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