Today's Pre-Market Laggard Is Macy's (M)
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Macy's as such a stock due to the following factors:
- M has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $332.2 million.
- M traded 12,400 shares today in the pre-market hours as of 8:00 AM.
- M is down 3.2% today from yesterday's close.
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More details on M:
Macy's, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its stores and Websites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The stock currently has a dividend yield of 2.9%. M has a PE ratio of 12. Currently there are 4 analysts that rate Macy's a buy, 2 analysts rate it a sell, and 10 rate it a hold.
The average volume for Macy's has been 5.4 million shares per day over the past 30 days. Macy's has a market cap of $16.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.06 and a short float of 2.6% with 1.43 days to cover. Shares are down 29.7% year-to-date as of the close of trading on Monday.
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Analysis:
rates Macy's as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Multiline Retail industry and the overall market, MACY'S INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- MACY'S INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MACY'S INC increased its bottom line by earning $4.27 versus $3.90 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $4.27).
- 40.86% is the gross profit margin for MACY'S INC which we consider to be strong. Regardless of M's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.55% trails the industry average.
- M, with its decline in revenue, underperformed when compared the industry average of 7.4%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, M has underperformed the S&P 500 Index, declining 11.81% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full Macy's Ratings Report.
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