CAL Should I Buy
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Caleres Inc (CAL) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown some positive revenue growth and exceeded Q4 earnings expectations, the overall financial performance is weak, with a significant drop in net income and EPS. The technical indicators are bearish, and there are no strong trading signals or positive sentiment from analysts to support immediate action. A hold position is recommended until further clarity on growth trends or stronger signals emerge.
The technical indicators for CAL are bearish. The MACD histogram is negative and contracting, the RSI is neutral at 61.368, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading close to its resistance level (R1: 10.713), which could limit upward movement in the short term.
Caleres exceeded Q4 earnings expectations with an 8.7% revenue increase, boosting investor confidence. The company projects a positive EPS outlook for 2026, which has led to a recent surge in stock price.
Financial metrics like net income, EPS, and gross margin have significantly declined YoY. Analysts have lowered price targets, citing macroeconomic challenges and slower growth expectations.
In Q4 2026, revenue increased by 8.7% YoY to $695.1 million, but the company reported a net loss of $22.73 million. In 2026/Q3, revenue grew by 6.63% YoY, but net income dropped by 94.28%, and EPS fell by 94.12%. Gross margin also declined by 5.37%, indicating rising costs and operational challenges.
Seaport Research analyst Mitch Kummetz lowered the price target from $18 to $14, maintaining a Buy rating but noting slower growth expectations due to macroeconomic challenges.
