Yahoo Finance Macy's (M) Dips More Than Broader Markets: What You Should Know
Macy's (M) closed at $14.76 in the latest trading session, marking a -1.53% move from the prior day. This move lagged the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 4.13%.
Prior to today's trading, shares of the department store operator had lost 14.38% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.38% and the S&P 500's gain of 0.13% in that time.
Wall Street will be looking for positivity from Macy's as it approaches its next earnings report date. This is expected to be June 1, 2023. The company is expected to report EPS of $0.46, down 57.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.12 billion, down 4.26% from the year-ago period.
M's full-year Zacks Consensus Estimates are calling for earnings of $3.73 per share and revenue of $23.93 billion. These results would represent year-over-year changes of -16.74% and -2.09%, respectively.
It is also important to note the recent changes to analyst estimates for Macy's. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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 1.58% lower within the past month. Macy's currently has a Zacks Rank of #3 (Hold).
Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 4.1. Its industry sports an average Forward P/E of 8.4, so we one might conclude that Macy's is trading at a discount comparatively.
We can also see that M currently has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 48% 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.
To follow M in the coming trading sessions, be sure to utilize Zacks.com.
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Macy's, Inc. (M) : Free Stock Analysis Report
