On Jul 17, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). Shares of this leading
department store retailer in the United States have amassed a
year-to-date return of roughly 29.3%.
Why the Upgrade?
Macy's has been taking prudent steps to augment sales,
profitability and cash flow. 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
merchandise planning to generate long-term profitability, which
is well evident from its record of beating the quarterly earnings
If we look at the company's earnings surprise history, Macy's
has outperformed the Zacks Consensus Estimate for 12 straight
quarters by an average of 35.6%. In the last concluded quarter,
the company beat the Zacks Estimate by 3.8%. The company's
relentless endeavors to keep itself on the growth trajectory have
paid off despite the lackluster economy.
Macy's quarterly earnings of 55 cents a share surpassed the
Zacks Consensus Estimate by a couple of cents and surged 28% from
43 cents earned in the prior-year quarter. Total sales grew 4% to
$6,387 million, and came ahead of the Zacks Consensus Estimate of
$6,380 million. The company's sound fundamentals across its
Macy's and Bloomingdale's business are mirrored through its
strong first-quarter results.
Buoyed by healthy results, management reiterated its fiscal
2013 earnings between $3.90 and $3.95. The Zacks Consensus
Estimate for fiscal 2013 rose 1% to $3.95 per share over the last
90 days. For fiscal 2014, the Zacks Consensus Estimate advanced
1.6% over the same timeframe to $4.49 per share.
Other Stocks to Consider
Apart from Macy's, there are other stocks with a favorable
Zacks Rank and capable of continuing with their upbeat
performances. These include
Bon-Ton Stores, Inc.
B&G Foods Inc.
Skechers USA Inc.
) all carrying a Zacks Rank #1 (Strong Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis
BON-TON STORES (BONT): Get Free Report
MACYS INC (M): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis
To read this article on Zacks.com click here.