Here's Why Macy's (M) Fell More Than Broader Market

In the latest trading session, Macy's (M) closed at $18.27, marking a -4.79% move from the previous day. This move lagged the S&P 500's daily loss of 1.33%. Elsewhere, the Dow saw a downswing of 0.95%, while the tech-heavy Nasdaq depreciated by 1.59%.

The department store operator's shares have seen a decrease of 10.83% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.54% and the S&P 500's gain of 0.58%.

Market participants will be closely following the financial results of Macy's in its upcoming release. The company plans to announce its earnings on March 18, 2026. On that day, Macy's is projected to report earnings of $1.55 per share, which would represent a year-over-year decline of 13.89%. Simultaneously, our latest consensus estimate expects the revenue to be $7.52 billion, showing a 3.14% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.2 per share and revenue of $21.65 billion, which would represent changes of -16.67% and -2.89%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Macy's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.91% lower. Macy's is currently a Zacks Rank #4 (Sell).

Investors should also note Macy's's current valuation metrics, including its Forward P/E ratio of 8.92. This signifies a discount in comparison to the average Forward P/E of 12.07 for its industry.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 227, positioning it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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