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

In the latest close session, Macy's (M) was up +2.23% at $22.42. The stock outperformed the S&P 500, which registered a daily gain of 0.46%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.45%.

Shares of the department store operator witnessed a loss of 16.33% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 3.73%, and the S&P 500's gain of 2%.

The investment community will be closely monitoring the performance of Macy's in its forthcoming earnings report. The company is scheduled to release its earnings on September 10, 2026. The company's upcoming EPS is projected at $0.37, signifying a 9.76% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.82 billion, indicating a 0.16% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $21.77 billion, which would represent changes of -4.31% and +0.05%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Macy's. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.37% higher. Macy's currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Macy's is holding a Forward P/E ratio of 9.87. This signifies a discount in comparison to the average Forward P/E of 13.77 for its industry.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 9, this industry ranks in the top 4% of all industries, numbering over 250.

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.

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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