) attained a new 52-week high of $51.24 on Nov 18, 2013, before
closing at $50.47. Shares of this Zacks Rank #3 (Hold) stock have
amassed a year-to-date return of roughly 33.8%.
Based on the current price, this department store retailer is
3.0% below the Zacks Consensus average analyst price target of
$52.04. The company currently trades at a forward P/E of 13.0x,
almost in line with the industry average of 12.99x.
Investors have become optimistic about Macy's as it posted
third-quarter fiscal 2013 earnings per share (EPS) of 47 cents
that handily surpassed the Zacks Consensus Estimate of 38 cents
and rose 31.0% year over year. The company reported total sales
of $6,276 million, which rose 3.3% on a year-over-year basis and
came ahead of the Zacks Consensus Estimate of $6,183 million.
Management cited that My Macy's localization initiatives,
omnichannel integration, Magic Selling and promotional strategies
were the prime factors that drove the robust performance amid a
tepid economy. This is 15th successive quarter that the
Cincinnati, Ohio-based company has registered year-over-year
growth in earnings per share.
Additionally, we believe that Macy's sustained focus on price
optimization, inventory management, merchandise planning and
private label offering are the stimulants behind higher traffic
inflow. The above-mentioned measures also help the company to
satisfy customer-oriented demands and enhance the in-store
Macy's has been proactive in capital deployment. It has returned
much of its free cash to shareholders through dividends and share
repurchase programs, while maintaining a healthy balance sheet
and strong credit ratios that are necessary for an
Macy's history of positive earnings surprises also make investors
confident about the stock. We observe that the company has beaten
the Zacks Consensus Estimate in the past 4 quarters by an average
Apart from Macy's, other retail stocks such as
Dick's Sporting Goods Inc.
) achieved new 52-week highs of $69.95, $56.72 and $226.84,
respectively, on Nov 18, 2013.
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