Macy's (M) Stock Sinks As Market Gains: What You Should Know

Macy's (M) closed the most recent trading day at $19.58, moving -0.05% from the previous trading session. This change lagged the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Coming into today, shares of the department store operator had gained 12.33% in the past month. In that same time, the Retail-Wholesale sector lost 6.89%, while the S&P 500 lost 0.41%.

Investors will be hoping for strength from Macy's as it approaches its next earnings release, which is expected to be November 17, 2022. The company is expected to report EPS of $0.19, down 84.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.18 billion, down 4.87% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.13 per share and revenue of $24.47 billion. These totals would mark changes of -22.22% and +0.03%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Macy's. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Macy's is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 4.74. Its industry sports an average Forward P/E of 8.67, 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 0.4. 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 0.76 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 33, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.