Macy's (M) Ascends While Market Falls: Some Facts to Note

Macy's (M) ended the recent trading session at $22.82, demonstrating a +1.02% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw a decrease of 0.08%.

The stock of department store operator has fallen by 10.18% in the past month, lagging the Retail-Wholesale sector's gain of 5.45% and the S&P 500's gain of 3.67%.

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 September 10, 2026. The company is expected to report EPS of $0.37, down 9.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.82 billion, up 0.16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and a revenue of $21.77 billion, representing changes of -4.31% and +0.05%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Macy's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.37% higher. Macy's currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Macy's currently has a Forward P/E ratio of 10.17. This indicates a discount in contrast to its industry's Forward P/E of 15.18.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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