Macy's Inc .'s ( M ) strong fundamentals
and history of positive earnings surprises facilitated it to record
a new 52-week high for the 3 rd time in a months'
Shares of this department store retailer reached a new 52-week
high of $43.88 on Thursday, Apr 4, and eventually closed at $43.56,
rising roughly 14.2% year to date. The company currently trades at
a forward P/E of 11.16x, a 2.4% discount to the peer group average
Macy's 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
merchandise planning to generate long-term profitability, which is
well evident from its record of beating the quarterly earnings
Macy's posted stronger-than-anticipated fourth-quarter fiscal
2012 results on the back of My Macy's localization initiatives,
omnichannel integration, robust online sales and effective cost
management. It 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%.
If we look at the company's earnings surprise history, this
Zacks Rank #1 (Strong Buy) stock has outperformed the Zacks
Consensus Estimate for 11 straight quarters by an average of
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%.
Buoyed by healthy results, management now projects fiscal 2013
earnings between $3.90 and $3.95.
Other Stocks to Consider
Alongside Macy's, other stocks worth considering in the non-food
retail wholesale sector are Big 5 Sporting Goods Corp.
(BGFV) , Sears Holdings Corporation (
Cabela's Incorporated ( CAB ) all holding a
favorable Zacks Rank #1 (Strong Buy).BIG 5 SPORTING (BGFV): Free Stock Analysis
ReportCABELAS INC (CAB): Free Stock Analysis ReportMACYS INC (M): Free Stock Analysis ReportSEARS HLDG CP (SHLD): Free Stock Analysis
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