Macy's (M) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Core Viewpoint - Macy's stock has experienced a decline of 2.99% in the latest trading session, underperforming compared to major indices, despite a significant increase of 17.67% over the past month [1] Financial Performance - The upcoming earnings report for Macy's is projected to show an EPS of $0.18, reflecting a 66.04% decrease year-over-year, with revenue expected to be $4.74 billion, down 4.03% from the same quarter last year [2] - For the entire year, earnings are forecasted at $1.78 per share and revenue at $21.27 billion, indicating declines of 32.58% and 4.57% respectively compared to the previous year [3] Analyst Estimates - Changes in analyst estimates for Macy's are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which considers estimate changes, currently rates Macy's at 4 (Sell), indicating a less favorable outlook [6] Valuation Metrics - Macy's is trading at a Forward P/E ratio of 7.69, significantly lower than the industry average of 17.2, suggesting that the stock is trading at a discount [7] - The Retail - Regional Department Stores industry, to which Macy's belongs, ranks in the bottom 22% of all industries, with a current Zacks Industry Rank of 194 [7][8]