Many stocks have been testing new highs in 2020, and one of the most notable is Macy’s Inc. (M). Currently, M is trading at $9.55 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $6.19.
To add more color to this target, the company’s high over the last year is $23.40 and the low is $4.38. Over the last 52 weeks, M is down -59.19% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, M reported a profit of $3.31 billion. Macy’s Inc. also saw revenues increase to $8.58 billion. In addition, M has free cash flow of $451.0 million as of 01-2020 The company’s EBITDA came in at $819.0 million which compares well with its peers.
M booked profit margins of 2.20%, its Return on Equity (ROE) is 9.00%, and its Return on Assets is 2.60%. All told, it is clear that, M needs to be on your watchlist.
About Macy’s Inc.
If readers are unfamiliar, Macy’s, Inc., an omnichannel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of April 1, 2019, it operated approximately 680 department stores under the Macy’s and Bloomingdale’s names; and 190 specialty stores, such as Bloomingdale’s The Outlet, Bluemercury, Macy’s Backstage, and STORY in 43 states, the District of Columbia, Guam, and Puerto Rico. It also operated macys.com, bloomingdales.com, and bluemercury.com. In addition, the company offers licenses for its stores; and operates a beauty products and spa retailer under the bluemercury name. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy’s, Inc. in June 2007. Macy’s, Inc. was founded in 1830 and is based in New York, New York.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. M has a short ratio of 3.34 and outstanding shares of 310.00M.
M has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 63.35 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.81. Macy’s Inc. M also noted assets of $21.17 billion at the end of the last quarter. Investors should also keep an eye on sector updates as M has historically followed its peers on positive news.
All told, Macy’s Inc. M has strung together solid data and demonstrated underlying fundamentals. At its current valuation, M represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Macy’s Inc. M is now commanding a market cap of 2.96B and a float of 293.81M. M is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of M stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in M, either long or short, and we have not been compensated for this article.