On Mar 8, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Macy's has been witnessing rising earnings estimates owing to
better-than-expected fourth-quarter fiscal 2012 results, on the
back of My Macy's localization initiatives, omnichannel
integration, robust online sales and effective cost management.
The company declared impressive results on Feb 26, 2013, wherein
earnings of $2.05 per share surpassed the Zacks Consensus
Estimate of $1.98 by 3.5%.
This leading department store retailer in the United States
has outperformed the Zacks Consensus Estimate for 11 straight
quarters by an average of 38.5%. The long-term expected earnings
growth rate for the stock is 10.9%.
Macy's total sales grew 7.2% to $9,350 million in the quarter
from $8,724 million in the year-ago period, and came ahead of the
Zacks Consensus Estimate of $9,327 million. Comparable-store
sales for the quarter climbed 3.9%.
Macy's is one such company that has been performing fairly
well. The company has been taking prudent steps to augment sales,
profitability and cash flows. These include integration of
operations, consolidation of divisions and customer-centric
localization initiatives. To help drive traffic, Macy's continues
to focus on price optimization, inventory management and
Buoyed by healthy results, management now projects fiscal 2013
earnings between $3.90 and $3.95.
The Zacks Consensus Estimate for fiscal 2013 rose 2.1% to
$3.90 per share over the last 30 days. For fiscal 2014, the Zacks
Consensus Estimate advanced 1.4% over the same timeframe to $4.40
Other Stocks to Consider
The stock worth considering in the non-food retail, wholesale
), which holds a Zacks Rank #1 (Strong Buy) and is expected to
continue with its upbeat performance. Other stocks that should be
New York & Company Inc.
Urban Outfitters Inc.
), both carrying a Zacks Rank #2 (Buy).
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