Why Macy's (M), a Rapidly Advancing Company, Is an Excellent Option for Value Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Should l Buy M?
Source: NASDAQ.COM
Momentum Investing Overview: Momentum investing contrasts with traditional strategies by focusing on "buying high and selling higher," which can be risky if stocks lose momentum due to overvaluation.
Macy's Stock Performance: Macy's (M) has shown significant price increases, with a 17.1% rise in four weeks and a 32% gain over 12 weeks, indicating strong momentum and a favorable entry point for investors.
Valuation Metrics: Despite its momentum, Macy's is trading at a low Price-to-Sales ratio of 0.27, suggesting it is attractively priced and has potential for further growth.
Investment Strategy Tools: Investors can utilize Zacks' various screening tools, including the 'Fast-Paced Momentum at a Bargain' screen, to identify promising stocks like Macy's and enhance their stock-picking strategies.
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Analyst Views on M
Wall Street analysts forecast M stock price to rise
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 17.170
Low
8.00
Averages
21.33
High
27.00
Current: 17.170
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.
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See More
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- Earnings Reports: Dollar Tree, Lululemon, Five Below, and Macy's are scheduled to report earnings next week, with their performance providing crucial indicators of the retail sector's health, prompting investors to closely monitor sales and profit figures.
- Federal Reserve Meeting: Federal Reserve officials will convene for the FOMC meeting next week, with the market keenly watching for any changes in interest rate policy that could affect the overall economic environment and stock market performance, necessitating investors to prepare accordingly.
- Market Insights: Investors can tune into the “Asking for a Trend” program for more market updates and expert analysis, aiding them in better understanding the current market landscape and making informed investment decisions.
See More
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- Refund Proposal: U.S. Trade Representative Jamieson Greer suggested that companies should allocate the approximately $165 billion in refunds from voided tariffs to employee bonuses or raises, aiming to enhance worker welfare and stimulate consumer spending.
- Legal Actions: Hundreds of American importers, including Costco and FedEx, have filed lawsuits seeking refunds for tariffs deemed illegal by the Supreme Court, reflecting significant corporate dissatisfaction with tariff policies.
- Refund System Progress: The U.S. Customs and Border Protection reported that the online system for processing refund claims is 70% complete, although the judge's order for refunds remains suspended, highlighting the complexities in executing tariff policies.
- Trade Investigations Expansion: Greer's office has initiated trade investigations into nearly 80 countries, including China, Japan, and India, indicating that the U.S. will continue to leverage Section 301 of the Trade Act to address unfair trade practices.
See More
UBS Increases Target Price for Macy's Inc. to $9, Up from $8
- Macy's Inc. Update: Macy's has raised its price target for shares of Starboard Value, increasing it from $8 to $9.
- Market Implications: This adjustment reflects a positive outlook on the company's performance and potential growth in the retail sector.
See More
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New World Order: The Trump administration is pursuing a strategy to undermine the Iranian regime, similar to its actions in Venezuela.
Market Reaction: Currently, the market appears stable, but the potential risks associated with this geopolitical conflict are significant.
See More
Retail Sector Earnings Surprise Predictions Released
- Earnings Overview: This week, major retailers including Target, Best Buy, and Costco are set to release earnings, with Target expected to report earnings of $2.17 per share and revenues of $30.52 billion, reflecting year-over-year declines of 10% and 1.3%, yet indicating market confidence in its future performance.
- Consumer Spending Trends: While overall consumer spending remains stable, particularly among high-income and younger demographics, lower-income groups are still grappling with inflationary pressures, leading to soft demand in discretionary spending categories, which has impacted Target's performance.
- Competitive Comparison: Target's stock has risen 15.6% in 2026, outperforming Walmart's 15% and the broader market's 0.6% increase, despite experiencing declines after each of the last five quarterly earnings releases, indicating market expectations for a positive outlook.
- Retail Sector Performance: So far, 22 retailers have reported earnings showing a 6.9% year-over-year increase in earnings and an 8.6% rise in revenues, but only 50% of these companies have exceeded EPS estimates, reflecting the challenges and competitive pressures facing the retail sector.
See More
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- Dividend Increase: Macy's board has declared a quarterly dividend of 19.15 cents per share, reflecting a 5% increase, indicating the company's strong cash flow and profitability performance.
- Payment Date: The new dividend will be payable on April 1, 2026, to shareholders of record as of March 13, 2026, ensuring timely returns for investors and boosting their confidence.
- Brand Influence: Macy's continues to solidify its leadership in the retail market through its iconic brands, including Macy's, Bloomingdale's, and Bluemercury, attracting a broader consumer base.
- Digital Transformation: Headquartered in New York City, Macy's leverages its comprehensive digital and nationwide footprint to provide a seamless shopping experience for customers, further driving sales growth and market share enhancement.
See More
