Here's the Reason Macy's (M) Declined More Sharply Than the Overall Market

Macy's Stock Performance and Market Overview

During the most recent trading day, Macy's (M) ended the session at $18.27, reflecting a 4.79% decline from its previous close. This drop was steeper than the S&P 500's 1.33% decrease for the day. Meanwhile, the Dow Jones Industrial Average fell by 0.95%, and the Nasdaq, known for its technology stocks, slipped by 1.59%.

Over the past month, Macy's shares have dropped 10.83%, underperforming both the Retail-Wholesale sector, which lost 2.54%, and the S&P 500, which edged up by 0.58% during the same period.

Upcoming Earnings and Analyst Expectations

Investors are anticipating Macy's next earnings announcement, scheduled for March 18, 2026. Analysts predict the company will report earnings of $1.55 per share, representing a 13.89% decrease compared to the same quarter last year. Revenue is expected to reach $7.52 billion, which would be a 3.14% year-over-year decline.

For the full fiscal year, consensus estimates suggest Macy's will post earnings of $2.20 per share and generate $21.65 billion in revenue. These figures would mark decreases of 16.67% and 2.89%, respectively, from the previous year.

Analyst Revisions and Stock Ratings

Recent changes in analyst forecasts for Macy's often reflect shifting business conditions in the near term. Upward revisions typically signal growing confidence in the company's prospects and profitability.

Research indicates that such estimate changes are closely tied to short-term stock price movements. To help investors capitalize on these trends, Zacks has developed a proprietary ranking system—the Zacks Rank—which incorporates these estimate adjustments into its ratings.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record, with #1-ranked stocks delivering an average annual return of 25% since 1988, as verified by independent audits. Over the past month, the consensus earnings per share estimate for Macy's has dropped by 3.91%. Currently, Macy's holds a Zacks Rank of #4 (Sell).

Valuation and Industry Standing

Looking at valuation, Macy's Forward Price-to-Earnings (P/E) ratio stands at 8.92, which is lower than the industry average Forward P/E of 12.07, indicating the stock is trading at a relative discount.

Macy's operates within the Retail - Regional Department Stores industry, part of the broader Retail-Wholesale sector. This industry currently holds a Zacks Industry Rank of 227, placing it in the bottom 8% among more than 250 industries tracked.

The Zacks Industry Rank is determined by the average Zacks Rank of the companies within each sector. Historically, industries ranked in the top half outperform those in the bottom half by a two-to-one margin.

For ongoing updates and more insights into stock movements, consider using Zacks.com during your trading activities.

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