Crude Oil Jumps 2%; Macy's Lowers Earnings Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2024
0mins
Source: Benzinga
U.S. Stock Market Performance: U.S. stocks saw gains with the Nasdaq Composite rising over 300 points, while Macy's reported better-than-expected third-quarter sales and adjusted EPS, projecting higher sales for 2024 despite a decline in adjusted EPS from the previous year.
Market Trends and Economic Indicators: Communication services shares increased by 3.1%, while health care shares fell by 1%. The Consumer Price Index rose 2.7% year-over-year in November 2024, indicating a slight acceleration in inflation, alongside a decline in U.S. crude inventories.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy M?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on M
Wall Street analysts forecast M stock price to fall
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 22.180
Low
8.00
Averages
21.33
High
27.00
Current: 22.180
Low
8.00
Averages
21.33
High
27.00
About M
Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Cerulean 6, Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C, jenni, JM Collection, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Global Bank Reiterates Bullish Stance on TJX Companies
- Analyst Confidence: UBS analyst Jay Sole reiterated a buy rating on TJX with a price target of $197, representing a 19% upside from the latest closing price, reflecting strong confidence in the company's growth prospects.
- Consumer Confidence: The latest consumer survey revealed that 71% of respondents believe T.J. Maxx offers good value for money, significantly higher than the 47% for Macy's, indicating TJX's competitive advantage in the market.
- Shopping Frequency Expectations: The survey indicated that T.J. Maxx customers anticipate a 14% increase in shopping frequency over the next year, contrasting sharply with the overall survey average of -1%, suggesting rising customer loyalty and demand for TJX's offerings.
- Strong Performance: TJX reported a 6% year-over-year increase in comparable sales and a 9% rise in net sales to over $14 billion in Q1 of fiscal 2027, with adjusted EPS soaring 29% to nearly $1.19, exceeding analyst expectations and boosting market confidence in its future performance.
See More
TJX Companies Shares Seen with Over 19% Upside Potential
- Analyst Bullish on Stock: UBS analyst Jay Sole reiterated a buy rating on TJX Companies, setting a price target of $197 per share, which is over 19% above the latest closing price, reflecting strong confidence in the company's growth prospects.
- Strong Consumer Confidence: The latest consumer survey indicated that 71% of respondents believe T.J. Maxx offers good value for money, significantly higher than the 47% for Macy's and other department stores, suggesting a growing preference for the TJX brand among consumers.
- Increased Shopping Frequency Expected: The survey revealed that customers of T.J. Maxx anticipate a 14% increase in shopping frequency over the next year, compared to an average decline of 1% across the overall survey, indicating a clear advantage for TJX in attracting customers that could drive sales growth.
- Impressive Financial Performance: TJX reported a 6% year-over-year increase in comparable store sales for Q1 of fiscal 2027, with net sales exceeding $14 billion and adjusted earnings per share soaring 29% to nearly $1.19, surpassing analyst expectations and further boosting market confidence in its future performance.
See More
Analysis of Greg Abel's First Quarter as CEO of Berkshire Hathaway
- Reason for Amazon Sale: Berkshire Hathaway held approximately 2.3 million shares of Amazon in Q4, and despite Amazon's strong performance in e-commerce and cloud computing, its negligible portion of Berkshire's $263 billion portfolio made the sale unsurprising, reflecting CEO Abel's reassessment of the investment strategy.
- Investment in Macy's: Berkshire Hathaway purchased about 3 million shares of Macy's, which has faced significant challenges, yet the company's Q1 2026 net sales increased by 1.8% year-over-year, indicating potential recovery that may have caught Abel's attention.
- Attractive Valuation of Macy's: Macy's forward P/E ratio stands at 10.2, significantly lower than the consumer discretionary average of 26.2, suggesting it may be undervalued, and Abel's investment could be based on optimism regarding the value of its real estate holdings.
- Financial Performance Exceeds Expectations: Macy's adjusted EPS reached $0.13 in Q1 2026, an 18% increase year-over-year, surpassing Wall Street estimates, and the company raised its full-year guidance, indicating a positive operational trajectory that may bolster Berkshire's investment confidence.
See More
Berkshire Hathaway Sells All Amazon Shares Amid Strategic Shift
- Amazon Share Sale: Berkshire Hathaway sold 2.3 million shares of Amazon in Q1, reflecting a strategic shift despite Amazon's strong performance in e-commerce and cloud computing, as its small portfolio percentage indicated a reassessment of investment priorities within the $263 billion portfolio.
- New CEO's Strategy: New CEO Greg Abel quickly adjusted the investment strategy post-takeover by closing several positions and increasing stakes in new companies, indicating a potential shift in leadership style compared to Warren Buffett, which may influence future investment directions.
- Investment in Macy's: Berkshire Hathaway acquired 3 million shares of Macy's, which has faced significant challenges but may have undervalued real estate assets, highlighting the company's ongoing focus on value investing despite the retailer's struggles.
- Improved Financial Performance: Macy's reported a 1.8% year-over-year increase in net sales to $4.7 billion in Q1 of fiscal 2026, with adjusted EPS of $0.13 exceeding Wall Street estimates, indicating progress in its turnaround efforts amidst ongoing risks.
See More
Macy's Achieves Best Quarter in Four Years Amid Strategic Shift
- Performance Recovery: After closing underperforming stores and focusing on high-margin luxury goods, Macy's achieved its best quarterly performance in four years, marking four consecutive quarters of comparable sales growth, demonstrating the effectiveness of its 'Bold New Chapter' strategy.
- Stock Price Surge: The strong performance lifted Macy's shares to their highest level since January, also boosting peers Dillard's and Kohl's, reflecting market confidence in the company's turnaround efforts.
- Strategic Investment: Analysts highlight Macy's investment in luxury segments, particularly Bloomingdale's and Bluemercury, as structural growth engines that are gaining market share amid challenges faced by Saks, further solidifying its competitive position.
- Prudent Guidance: Macy's management adopted a cautious approach to future guidance, considering potential impacts from macroeconomic and geopolitical factors, projecting FY2026 net sales between $21.5 billion and $21.75 billion, with adjusted EPS expectations of $2 to $2.20.
See More
Macy's Stock Rises 11% on Berkshire Stake and Earnings Beat
- Stock Surge: Macy's shares rose 11% in May, driven by Berkshire Hathaway's new stake and a solid earnings report, indicating signs of business recovery amidst a challenging retail environment.
- Earnings Highlights: In the first quarter of fiscal 2026, adjusted earnings per share (EPS) reached $0.13, significantly surpassing Wall Street's expectation of $0.03, while comparable sales increased by 3% year-over-year, marking the best performance in four years and reflecting positive momentum in the company's transformation efforts.
- Strategic Shift: Macy's is executing its 'Bold New Chapter' strategy by closing underperforming stores and reallocating resources to stronger locations, alongside a heightened focus on e-commerce and omnichannel shopping to adapt to changing retail dynamics.
- Investment Appeal: Despite a 70% decline from its decade-high stock price, Macy's trades at less than nine times trailing earnings and offers a 3.4% dividend yield, making it attractive to value investors, especially as the company's new strategy begins to show results.
See More
Global Bank Reiterates Bullish Stance on TJX Companies
- Analyst Confidence: UBS analyst Jay Sole reiterated a buy rating on TJX with a price target of $197, representing a 19% upside from the latest closing price, reflecting strong confidence in the company's growth prospects.
- Consumer Confidence: The latest consumer survey revealed that 71% of respondents believe T.J. Maxx offers good value for money, significantly higher than the 47% for Macy's, indicating TJX's competitive advantage in the market.
- Shopping Frequency Expectations: The survey indicated that T.J. Maxx customers anticipate a 14% increase in shopping frequency over the next year, contrasting sharply with the overall survey average of -1%, suggesting rising customer loyalty and demand for TJX's offerings.
- Strong Performance: TJX reported a 6% year-over-year increase in comparable sales and a 9% rise in net sales to over $14 billion in Q1 of fiscal 2027, with adjusted EPS soaring 29% to nearly $1.19, exceeding analyst expectations and boosting market confidence in its future performance.
See More
TJX Companies Shares Seen with Over 19% Upside Potential
- Analyst Bullish on Stock: UBS analyst Jay Sole reiterated a buy rating on TJX Companies, setting a price target of $197 per share, which is over 19% above the latest closing price, reflecting strong confidence in the company's growth prospects.
- Strong Consumer Confidence: The latest consumer survey indicated that 71% of respondents believe T.J. Maxx offers good value for money, significantly higher than the 47% for Macy's and other department stores, suggesting a growing preference for the TJX brand among consumers.
- Increased Shopping Frequency Expected: The survey revealed that customers of T.J. Maxx anticipate a 14% increase in shopping frequency over the next year, compared to an average decline of 1% across the overall survey, indicating a clear advantage for TJX in attracting customers that could drive sales growth.
- Impressive Financial Performance: TJX reported a 6% year-over-year increase in comparable store sales for Q1 of fiscal 2027, with net sales exceeding $14 billion and adjusted earnings per share soaring 29% to nearly $1.19, surpassing analyst expectations and further boosting market confidence in its future performance.
See More
Analysis of Greg Abel's First Quarter as CEO of Berkshire Hathaway
- Reason for Amazon Sale: Berkshire Hathaway held approximately 2.3 million shares of Amazon in Q4, and despite Amazon's strong performance in e-commerce and cloud computing, its negligible portion of Berkshire's $263 billion portfolio made the sale unsurprising, reflecting CEO Abel's reassessment of the investment strategy.
- Investment in Macy's: Berkshire Hathaway purchased about 3 million shares of Macy's, which has faced significant challenges, yet the company's Q1 2026 net sales increased by 1.8% year-over-year, indicating potential recovery that may have caught Abel's attention.
- Attractive Valuation of Macy's: Macy's forward P/E ratio stands at 10.2, significantly lower than the consumer discretionary average of 26.2, suggesting it may be undervalued, and Abel's investment could be based on optimism regarding the value of its real estate holdings.
- Financial Performance Exceeds Expectations: Macy's adjusted EPS reached $0.13 in Q1 2026, an 18% increase year-over-year, surpassing Wall Street estimates, and the company raised its full-year guidance, indicating a positive operational trajectory that may bolster Berkshire's investment confidence.
See More
Berkshire Hathaway Sells All Amazon Shares Amid Strategic Shift
- Amazon Share Sale: Berkshire Hathaway sold 2.3 million shares of Amazon in Q1, reflecting a strategic shift despite Amazon's strong performance in e-commerce and cloud computing, as its small portfolio percentage indicated a reassessment of investment priorities within the $263 billion portfolio.
- New CEO's Strategy: New CEO Greg Abel quickly adjusted the investment strategy post-takeover by closing several positions and increasing stakes in new companies, indicating a potential shift in leadership style compared to Warren Buffett, which may influence future investment directions.
- Investment in Macy's: Berkshire Hathaway acquired 3 million shares of Macy's, which has faced significant challenges but may have undervalued real estate assets, highlighting the company's ongoing focus on value investing despite the retailer's struggles.
- Improved Financial Performance: Macy's reported a 1.8% year-over-year increase in net sales to $4.7 billion in Q1 of fiscal 2026, with adjusted EPS of $0.13 exceeding Wall Street estimates, indicating progress in its turnaround efforts amidst ongoing risks.
See More
Macy's Achieves Best Quarter in Four Years Amid Strategic Shift
- Performance Recovery: After closing underperforming stores and focusing on high-margin luxury goods, Macy's achieved its best quarterly performance in four years, marking four consecutive quarters of comparable sales growth, demonstrating the effectiveness of its 'Bold New Chapter' strategy.
- Stock Price Surge: The strong performance lifted Macy's shares to their highest level since January, also boosting peers Dillard's and Kohl's, reflecting market confidence in the company's turnaround efforts.
- Strategic Investment: Analysts highlight Macy's investment in luxury segments, particularly Bloomingdale's and Bluemercury, as structural growth engines that are gaining market share amid challenges faced by Saks, further solidifying its competitive position.
- Prudent Guidance: Macy's management adopted a cautious approach to future guidance, considering potential impacts from macroeconomic and geopolitical factors, projecting FY2026 net sales between $21.5 billion and $21.75 billion, with adjusted EPS expectations of $2 to $2.20.
See More
Macy's Stock Rises 11% on Berkshire Stake and Earnings Beat
- Stock Surge: Macy's shares rose 11% in May, driven by Berkshire Hathaway's new stake and a solid earnings report, indicating signs of business recovery amidst a challenging retail environment.
- Earnings Highlights: In the first quarter of fiscal 2026, adjusted earnings per share (EPS) reached $0.13, significantly surpassing Wall Street's expectation of $0.03, while comparable sales increased by 3% year-over-year, marking the best performance in four years and reflecting positive momentum in the company's transformation efforts.
- Strategic Shift: Macy's is executing its 'Bold New Chapter' strategy by closing underperforming stores and reallocating resources to stronger locations, alongside a heightened focus on e-commerce and omnichannel shopping to adapt to changing retail dynamics.
- Investment Appeal: Despite a 70% decline from its decade-high stock price, Macy's trades at less than nine times trailing earnings and offers a 3.4% dividend yield, making it attractive to value investors, especially as the company's new strategy begins to show results.
See More
