Yahoo Finance Macy's (M) Outpaces Stock Market Gains: What You Should Know
Macy's (M) closed the most recent trading day at $14.95, moving +1.08% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 2.7%.
Heading into today, shares of the department store operator had lost 13.36% over the past month, lagging the Retail-Wholesale sector's gain of 1.85% and the S&P 500's gain of 1.07% in that time.
Macy's will be looking to display strength as it nears its next earnings release, which is expected to be June 1, 2023. On that day, Macy's is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 57.41%. Meanwhile, our latest consensus estimate is calling for revenue of $5.11 billion, down 4.42% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.73 per share and revenue of $23.93 billion. These totals would mark changes of -16.74% and -2.09%, respectively, from last year.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.58% lower within the past month. Macy's is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 3.96 right now. This represents a discount compared to its industry's average Forward P/E of 8.06.
Also, we should mention that M has a PEG ratio of 0.33. 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. M's industry had an average PEG ratio of 0.67 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Macy's, Inc. (M) : Free Stock Analysis Report
