Macy’s
Shares of Macy’s Inc. (NYSE: M) have tumbled by more than 26% over the past 12 months. After posting a new 52-week low in early June, shares were recovering until the U.S. economic outlook for consumer spending started weakening. The company’s results have to satisfy 12 institutional investors that own a combined 52% of Macy’s stock. If they do not like what they hear, shares will dive. If they get good news, the stock could spike more than appears reasonable. You pay your money and you take your chances. Macy’s reports results early Tuesday.
Just six of 16 analysts rate Macy’s stock as a Buy or a Strong Buy. Another eight have Hold ratings. At a share price of around $15.00, the upside potential based on a median price target of $18.00 is 20%. Based on a high price target of $26.00, the potential upside on the shares is 73.3%.
Analysts anticipate second-quarter revenue of $5.11 billion, up 2.6% sequentially but 8.8% lower year over year. Adjusted EPS are tabbed at $0.14, down 75.6% sequentially and by 86.0% year over year. For the 2024 fiscal year ending in January, analysts are looking for EPS of $2.89, down 35.5%, on sales of $23.22 billion, down about 5%.
Macy’s stock trades at 5.2 times expected 2024 EPS, 5.0 times estimated 2025 earnings of $3.00 and 4.9 times estimated 2026 earnings of $3.10 per share. The 52-week range is $12.80 to $25.12. The company pays an annual dividend of $0.66 (yield of 4.25%). Total shareholder return for the past year was negative 23.71%.
Zoom Video
Over the past 12 months, shares of Zoom Video Communications Inc. (NASDAQ: ZM) have dropped by about 36.2%. The stock has now given back all the gains, and more, that it had accumulated in the March quarter. The company reports quarterly earnings after markets close on Monday.
A week ago, Zoom announced that it would require employees who live within 50 miles of a company office to show up at that office at least on some days each week. For a company that made its name and fortune from the work-from-home regime forced on employers by the pandemic, Zoom’s requirement fairly drips with irony.
Of 33 brokerages covering the stock, 23 have a Hold rating and nine have Buy or Strong Buy ratings. At a share price of around $65.40, the upside potential based on a median price target of $80.00 is 22.3%. At the high price target of $105.00, the upside potential is 60.6%.
Fiscal second-quarter revenue is forecast at $1.11 billion, up 0.8% sequentially and by 0.9% year over year. Adjusted EPS are pegged at $1.06, down 8.6% sequentially and 13.1% lower year over year. For the full 2024 fiscal year ending in January, current estimates call for EPS of $4.32, down 1.1%, on sales of $4.49 billion, up 2.2%.
Zoom Video’s stock trades at 15.1 times expected 2024 EPS, 14.9 times estimated 2025 earnings of $4.39 and 14.3 times estimated 2025 earnings of $4.58 per share. The 52-week range is $60.45 to $104.57. Zoom does not pay a dividend, and the total shareholder return for the past year is negative 36.16%.
Originally published at 24/7 Wall St.
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