M Should I Buy
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Based on the investor's long-term strategy and beginner knowledge level, Macy's Inc. does not present a compelling buy opportunity at this time. While there are some positive catalysts, the financial performance and mixed analyst sentiment suggest limited upside potential in the near term. Holding off on investment until further clarity on growth and profitability trends is advisable.
The technical indicators suggest a neutral to slightly bullish trend. The MACD is positive and expanding, moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the RSI is neutral at 57.435. The stock is trading near its pivot level of 21.38, with resistance at 22.503 and support at 20.257.
Macy's reported a 3.4% increase in same-store sales for Q3 2023, indicating early success in its turnaround strategy.
Analysts like Jefferies and Goldman Sachs raised price targets and highlighted potential upside from momentum and credit card revenue.
Potential market share gains from Saks bankruptcy restructuring.
Net income and EPS dropped significantly YoY (-60.71% and -60.00%, respectively), indicating profitability challenges.
UBS maintains a Sell rating, citing competitive disadvantages and ongoing earnings pressure.
Mixed analyst sentiment with some firms expressing caution due to macroeconomic pressures and competitive retail landscape.
In Q3 2026, Macy's revenue grew slightly by 0.20% YoY to $4.91 billion, but net income dropped sharply by 60.71% YoY to $11 million. EPS also declined by 60.00% YoY to $0.04. Gross margin improved marginally to 41.89%, up 0.72% YoY, but overall profitability remains under pressure.
Analyst sentiment is mixed. Jefferies and Goldman Sachs raised price targets and maintain Buy and Neutral ratings, respectively, citing momentum and improved guidance. However, UBS maintains a Sell rating, citing competitive disadvantages and limited profitability growth. Other firms like Evercore and Telsey Advisory remain cautious, highlighting macro pressures and a conservative Q4 outlook.
