Macy's (M) closed the latest trading day at $14.78, indicating a +0.75% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.27%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw an increase of 0.03%.
The the stock of department store operator has risen by 4.64% in the past month, lagging the Retail-Wholesale sector's gain of 8.91% and overreaching the S&P 500's gain of 4.27%.
The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. The company is predicted to post an EPS of $1.55, indicating a 36.73% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.79 billion, indicating a 4.03% decline compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Macy's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% upward. Macy's is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Macy's is holding a Forward P/E ratio of 6.01. This signifies a discount in comparison to the average Forward P/E of 9.68 for its industry.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 225, positioning it in the bottom 11% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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