Macy’s (M) Outperforms Market Gains: What You Need To Know

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Macy’s (M) closed at $ 22.56 last trading session, marking a + 1.17% move from the previous day. The stock topped the S&P 500 daily gain by 0.41%.

Prior to today, shares of the department store operator had gained 1.69% over the past month, beating the retail and wholesale sector’s 7.3% loss and 4.08 loss. % of the S&P 500 during this period.

Investors are hoping for M’s strength as the next earnings release draws near. On that day, M is expected to report earnings of $ 0.26 per share, which would represent year-over-year growth of 236.84%. Meanwhile, our latest consensus estimate projects revenue of $ 5.17 billion, up 29.62% from the previous year’s quarter.

Zacks’ consensus estimates for M’s full year project earnings of $ 3.75 per share and revenue of $ 23.82 billion. These results would represent year-over-year variations of + 269.68% and + 37.32%, respectively.

Investors should also note any recent changes in analyst estimates for M. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.

Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. In the past 30 days, our consensus EPS forecast has increased 0.5%. M currently holds a Zacks # 1 rank (strong buy).

In terms of valuation, M is currently trading at a forward P / E ratio of 5.95. This represents a discount to its industry’s average forward P / E of 7.92.

It should also be noted that M currently has a PEG ratio of 0.5. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Retail – Regional Department Stores currently had an average PEG ratio of 0.7 at yesterday’s close.

The Retail Trade – Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 1, which places it in the top 1% of all 250+ industries.

The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and more, at Zacks.com.

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