Macy's (M) Increases Yet Falls Behind Market: What Investors Need to Know

Core Viewpoint - Macy's is facing a challenging financial outlook with expected declines in both earnings and revenue for the upcoming earnings report and the full year [2][3]. Group 1: Recent Performance - Macy's stock closed at $12.42, reflecting a +0.65% change from the previous day, which is below the S&P 500's gain of 0.73% [1] - Over the past month, Macy's shares have increased by 9.01%, while the Retail-Wholesale sector and S&P 500 gained 9.91% and 9.07%, respectively [1]. Group 2: Earnings Forecast - The upcoming earnings report is scheduled for May 28, 2025, with an expected EPS of $0.15, indicating a 44.44% decline from the same quarter last year [2]. - The Zacks Consensus Estimate projects net sales of $4.47 billion, down 7.72% from the previous year [2]. Group 3: Annual Projections - For the entire year, the Zacks Consensus Estimates forecast earnings of $2.04 per share and revenue of $21.22 billion, reflecting declines of -22.73% and -4.81%, respectively, compared to the previous year [3]. Group 4: Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Macy's indicate a downward shift of 3.77% in the Zacks Consensus EPS estimate over the past month, suggesting a negative outlook [5]. - Macy's currently holds a Zacks Rank of 4 (Sell), indicating a less favorable investment position [5]. Group 5: Valuation Metrics - Macy's is trading at a Forward P/E ratio of 6.04, significantly lower than the industry average of 14.13, suggesting it is undervalued compared to its peers [6]. - The Retail - Regional Department Stores industry is ranked 196 out of over 250 industries, placing it in the bottom 21% [6].