In the latest trading session, Macy's (M) closed at $19.96, marking no change from the previous day. This change lagged the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the department store operator had gained 20.17% over the past month, outpacing the Retail-Wholesale sector's gain of 14.83% and the S&P 500's gain of 12.15% in that time.
Investors will be hoping for strength from Macy's as it approaches its next earnings release, which is expected to be August 23, 2022. On that day, Macy's is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, down 2.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.58 per share and revenue of $24.47 billion, which would represent changes of -13.75% and +0.03%, respectively, from the prior year.
Any recent changes to analyst estimates for Macy's should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.74% lower. Macy's is currently a Zacks Rank #3 (Hold).
Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 4.36. Its industry sports an average Forward P/E of 7.93, so we one might conclude that Macy's is trading at a discount comparatively.
Investors should also note that M has a PEG ratio of 0.36 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.61 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 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Macy's, Inc. (M) : Free Stock Analysis Report
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