In the latest trading session, Macy's (M) closed at $35.97, marking a -0.66% move from the previous day. This move lagged the S&P 500's daily loss of 0.44%. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the department store operator had lost 4.56% over the past month, lagging the Retail-Wholesale sector's gain of 4.67% and the S&P 500's gain of 3.59% in that time.
Investors will be hoping for strength from M as it approaches its next earnings release, which is expected to be November 8, 2018. On that day, M is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 43.48%. Meanwhile, our latest consensus estimate is calling for revenue of $5.44 billion, up 2.99% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $25.32 billion, which would represent changes of +6.63% and +1.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for M. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 2.07% higher within the past month. M currently has a Zacks Rank of #3 (Hold).
Digging into valuation, M currently has a Forward P/E ratio of 9. This valuation marks a discount compared to its industry's average Forward P/E of 12.38.
We can also see that M currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 1.27 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 241, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.