Macy’s Stock Falls Sharply On Earnings, Cycles Point Lower

Steve Miller
macys stock research downgrade bearish outlook forecast lower image august 15

Macy’s NYSE: M Stock Weekly Chart 

Macy’s stock (M) tanked 13 percent on Wednesday, after the company posted earnings that missed Wall Street expectations. 

Our approach to stock analysis uses market cycles to project price action.

Based on its market cycles, we believe that while Macy’s stock price may bounce in the near term, it still has downside risk going into November.

Our analysis is that Macy’s (M) is still in the declining phase of its current minor cycle. The stock has broken the low from which it started its cycle, which is a bearish indicator.

For over one year, the stock has been in a stair-step downward path, with cycle rhythms continually negative and failures at resistance. Our view is that through November any bounce is an opportunity to sell.

Macy’s Earnings Overview

The company reported earnings per share of $0.28 and total revenue of $5.55 billion, compared to analyst estimates of $0.46 and $5.56 billion. Management lowered its earnings guidance to $2.85-3.05 per share, below the average analyst estimate of $3.07.

CEO Jeffrey Gennette said that, “We learned that the customer has very little appetite for cost increases,” referring to possible increased on clothing imported from China.

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