Is Macy's Stock (M) a Buy Ahead of Earnings?
Retailer Macy's (M) is set to release its Fiscal Q1 2025 earnings report later this week. This has some traders wondering if M stock is worth buying before its upcoming earnings report.
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Wall Street's estimates for Macy's Q1 report include adjusted earnings per share of 15 cents, representing a 44.4% decrease year-over-year. Analysts' revenue expectations are set at $4.42 billion, down 11.6% from the $5 billion reported in Fiscal Q1 2024.
Investors might wonder just how likely Macy's is to beat Wall Street's estimates. Based on the company's earnings history, it should be able to overcome analysts' estimates. The retailer has done so in all of its previous eight earnings reports.
What to Watch in Macy's Q1 Earnings Report
While Macy's is likely to beat Wall Street's estimates, investors will want to keep an eye on a few important factors. That includes the ongoing effects of a trade war between the U.S. and China. Macy's could feel the effects of tariffs in its Q1 earnings report, which could result in surprising results.
On that same note, tariffs could affect Macy's guidance. While many of President Trump's tariffs have been delayed, some are still ongoing. Macy's may update its outlook to reflect this, and the potential impact of tariffs if trade agreements aren't reached before holds end.
Three analysts updated their coverage of Macy's stock last week in the lead-up to earnings.
J.P. Morgan's Matthew Boss reiterated a Hold rating and $13 price target.
Five-star Citi analyst Paul Lejuez maintained a Hold rating and $11 price target.
Telsey Advisory analyst Dana Telsey kept a Hold rating and $15 price target.
Is Macy's Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for Macy's is Hold, based on one Buy, 10 Hold, and one Sell ratings over the past three months. With that comes an average M stock price target of $12, representing a potential 3.72% upside for the shares.
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