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Macy's (M) Falls More Steeply Than Broader Market: What Investors Need to Know

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Macy's (M - Free Report) ended the recent trading session at $15.08, demonstrating a -1.69% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the department store operator had lost 0.26% over the past month, lagging the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 3.3% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Macy's in its upcoming earnings disclosure. The company's earnings report is set to go public on November 26, 2024. The company is expected to report EPS of $0, down 100% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.74 billion, reflecting a 2.56% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $22.28 billion. These totals would mark changes of -22.29% and -3.51%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Macy's. These revisions help to show the ever-changing nature of 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Macy's is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 5.64 right now. This indicates a discount in contrast to its industry's Forward P/E of 10.31.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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