Macy's (M, $31.72) Plummets the Most in 10 Years, After Company Cuts Earnings Outlook
Macy’s Inc. lowered its annual profit and sales projection, leading its stock price to fall the most in a decade.
Compared to a previous forecast of at least +2.3%, Macy’s comparable sales is now projected to grow about +2%. Earnings are expected to come in around $4 a share, below the prior projection of as much as $4.30.
According to the retail chain, the major factors behind the downward revisions include under-performance in categories such as women’s sportswear, fashion jewelry and cosmetics, along with challenges in fulfilling orders following a fire at its West Virginia distribution center. Although the holiday season began on a high note, there was a drag during the mid-December period, as indicated by Macy’s CEO Jeff Gennette.
The news led to its shares dropping by as much as -18 percent on Thursday, marking the sharpest intraday decline since October 2008.
M's RSI Indicator ascends from oversold territory
The RSI Indicator for M moved out of oversold territory on September 25, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for M just turned positive on September 14, 2023. Looking at past instances where M's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where M advanced for three days, in of 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
M may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where M declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for M entered a downward trend on September 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.722) is normal, around the industry mean (2.204). P/E Ratio (4.115) is within average values for comparable stocks, (56.310). M's Projected Growth (PEG Ratio) (10.195) is slightly higher than the industry average of (2.541). M has a moderately high Dividend Yield (0.059) as compared to the industry average of (0.030). P/S Ratio (0.127) is also within normal values, averaging (0.689).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. M’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. M’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of department stores
Industry DepartmentStores
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M and
Correlation & Price change
A.I.dvisor indicates that over the last year, M has been closely correlated with KSS. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if M jumps, then KSS could also see price increases.