In the latest trading session, Macy's (M) closed at $11.84, marking a -0.92% move from the previous day. This move lagged the S&P 500's daily loss of 0.64%. Elsewhere, the Dow saw a downswing of 0.24%, while the tech-heavy Nasdaq depreciated by 0.74%.

The department store operator's stock has climbed by 5.01% in the past month, exceeding the Retail-Wholesale sector's gain of 0.16% and the S&P 500's gain of 0.38%.

Investors will be eagerly watching for the performance of Macy's in its upcoming earnings disclosure. The company is expected to report EPS of $0.14, down 48.15% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $4.47 billion, indicating a 7.86% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.12 per share and revenue of $21.27 billion, which would represent changes of -19.7% and -4.6%, respectively, from the prior year.

Any recent changes to analyst estimates for Macy's should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Macy's is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Macy's has a Forward P/E ratio of 5.63 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.98.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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Macy's, Inc. (M):Free Stock Analysis Report

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

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