Why Macy's (M), a Rapidly Advancing Company, Is an Excellent Option for Value Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Should l Buy M?
Source: NASDAQ.COM
Momentum Investing Overview: Momentum investing contrasts with traditional strategies by focusing on "buying high and selling higher," which can be risky if stocks lose momentum due to overvaluation.
Macy's Stock Performance: Macy's (M) has shown significant price increases, with a 17.1% rise in four weeks and a 32% gain over 12 weeks, indicating strong momentum and a favorable entry point for investors.
Valuation Metrics: Despite its momentum, Macy's is trading at a low Price-to-Sales ratio of 0.27, suggesting it is attractively priced and has potential for further growth.
Investment Strategy Tools: Investors can utilize Zacks' various screening tools, including the 'Fast-Paced Momentum at a Bargain' screen, to identify promising stocks like Macy's and enhance their stock-picking strategies.
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Analyst Views on M
Wall Street analysts forecast M stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for M is 21.33 USD with a low forecast of 8.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 22.700
Low
8.00
Averages
21.33
High
27.00
Current: 22.700
Low
8.00
Averages
21.33
High
27.00
About M
Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Cerulean 6, Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C, jenni, JM Collection, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Macy's Positioned to Gain Market Share Amid Saks Bankruptcy Restructuring
- Market Share Opportunity: Macy's (M) is identified by Jefferies as one of 14 stocks expected to benefit from the upcoming earnings releases, with the Saks bankruptcy restructuring potentially allowing it to gain market share through 2026 and exceed second-half earnings expectations.
- Impact of Saks Bankruptcy: Saks Global is undergoing Chapter 11 bankruptcy proceedings to restructure heavy debt from its 2024 Neiman Marcus acquisition, while core luxury brands continue to operate under some restrictions as the company renegotiates with creditors.
- Store Adjustment Strategy: Saks plans to close most Saks OFF 5TH locations and all remaining Neiman Marcus Last Call outlets, with liquidation sales already in progress, focusing resources on high-income customers and full-price selling.
- Stock Price Volatility: Shares of Macy's (M) fell 4.2% in late Monday trading, reflecting market caution regarding its future performance, despite the potential opportunities arising from the restructuring.
See More
Dupree Financial Group Sells 486,867 Shares of Macy's
- Share Sale Details: Dupree Financial Group sold 486,867 shares of Macy's in Q4, with an estimated transaction value of $9.97 million, reducing its stake in Macy's to 2.6% of its assets under management.
- Position Value Change: Following the sale, the value of Dupree's position in Macy's dropped by $7.40 million, indicating the impact of market price fluctuations on its investment portfolio.
- Macy's Performance Overview: Despite challenges like low margins and inventory risks, Macy's reported $4.7 billion in revenue in Q3, achieving its strongest comparable sales growth in 13 quarters, showcasing resilience in the retail market.
- Investor Focus: The sale reflects Dupree's strategic shift towards income and defensive investments; although Macy's has outperformed the S&P 500, it remains a tactical holding rather than a core investment, highlighting caution towards cyclical retailers.
See More
Nike Plans to Cut 775 Jobs Amid Automation Push
- Job Cuts Announcement: Nike plans to eliminate 775 positions at U.S. distribution centers as part of its ongoing automation initiative, reflecting a broader restructuring trend in the retail sector that could impact operational efficiency and market competitiveness.
- Historical Layoffs: This reduction follows the disclosure of 1,000 corporate job cuts last summer, indicating that Nike is implementing aggressive cost-control measures in response to weak sales and declining margins.
- Technical Analysis: Nike's stock is currently priced at $63.66, trading 1.2% below its 20-day simple moving average and 4.6% below its 100-day simple moving average, indicating a bearish short-term trend that requires cautious investor response.
- Market Reaction: Following the announcement, Nike shares fell by 2.05%, nearing their 52-week lows, which challenges market confidence in the company's future performance, with key support at $63.00, below which further declines may occur.
See More
Nike Cuts 775 Jobs to Enhance Profitability Amid Industry Restructuring
- Layoff Announcement: Nike has announced the layoff of 775 employees at its U.S. distribution centers as part of its strategy to enhance profitability and expedite automation, reflecting a broader trend of restructuring in the retail sector.
- Historical Cuts: This layoff follows the previous announcement of 1,000 corporate job cuts last summer, primarily affecting distribution center positions in Tennessee and Mississippi, indicating the company's response to sluggish sales and declining margins.
- CEO Strategic Shift: CEO Elliott Hill has indicated that while Nike is working to revamp its operations, the journey back to growth will not be linear, presenting an uncertain outlook for investors, particularly regarding challenges in the North American wholesale channel and the Chinese market.
- Stock Performance: Despite facing numerous challenges, Nike's stock has declined by 14.01% over the past year, yet it has shown slight recovery recently, suggesting a cautious optimism in the market regarding its potential for recovery.
See More
Department Store Downturn Continues as Macy's Closes 14 Locations
- Industry Downturn Intensifies: According to the 2026 Business of Fashion survey by McKinsey, 46% of fashion executives anticipate worsening conditions in 2026, indicating a lack of confidence in the retail market that could lead to reduced consumer choices and further impact sales performance.
- Macy's Store Closures: As part of its 'Bold New Chapter' restructuring plan, Macy's will close 14 locations across 11 states in 2026, following the closure of 50 stores in 2024 and 66 in 2025, demonstrating its commitment to navigating market challenges.
- Saks Off 5th Bankruptcy Liquidation: Saks Off 5th Holdings LLC received bankruptcy court approval in January 2026 to liquidate all merchandise from its e-commerce platform, expected to last up to eight weeks, reflecting the retailer's desperate measures amid liquidity constraints.
- Consultant Fee Structure: Under the consulting agreement with GA Retail Solutions, Saks Off 5th Digital will pay a retail base fee of 2% to 2.25% of gross proceeds, with a minimum fee of $250,000, alongside 5% on wholesale sales and 15% on FF&E sales, highlighting the financial pressures during the liquidation process.
See More
Macy's Sales Growth and Strategic Turnaround
- Sales Growth Trend: Macy's reported a 3.2% same-store sales increase in Q3 2025, with Bloomingdale's leading at 9%, indicating potential brand revival despite overall sales being impacted by store closures.
- Strategic Turnaround Plan: The 'Bold New Chapter' strategy implemented in 2024 aims to enhance performance by closing underperforming stores and expanding luxury brands, which is expected to strengthen Macy's market competitiveness.
- Strong Stock Performance: As of January 21, 2023, Macy's stock delivered a total return of 55%, significantly outperforming the S&P 500's 15%, reflecting investor confidence in its recovery.
- Valuation Appeal: Although the P/E ratio has risen from 8 to 12, Macy's valuation remains attractive compared to the market, especially against the S&P 500's 31 P/E, indicating potential investment opportunities.
See More
Macy's Positioned to Gain Market Share Amid Saks Bankruptcy Restructuring
- Market Share Opportunity: Macy's (M) is identified by Jefferies as one of 14 stocks expected to benefit from the upcoming earnings releases, with the Saks bankruptcy restructuring potentially allowing it to gain market share through 2026 and exceed second-half earnings expectations.
- Impact of Saks Bankruptcy: Saks Global is undergoing Chapter 11 bankruptcy proceedings to restructure heavy debt from its 2024 Neiman Marcus acquisition, while core luxury brands continue to operate under some restrictions as the company renegotiates with creditors.
- Store Adjustment Strategy: Saks plans to close most Saks OFF 5TH locations and all remaining Neiman Marcus Last Call outlets, with liquidation sales already in progress, focusing resources on high-income customers and full-price selling.
- Stock Price Volatility: Shares of Macy's (M) fell 4.2% in late Monday trading, reflecting market caution regarding its future performance, despite the potential opportunities arising from the restructuring.
See More
Dupree Financial Group Sells 486,867 Shares of Macy's
- Share Sale Details: Dupree Financial Group sold 486,867 shares of Macy's in Q4, with an estimated transaction value of $9.97 million, reducing its stake in Macy's to 2.6% of its assets under management.
- Position Value Change: Following the sale, the value of Dupree's position in Macy's dropped by $7.40 million, indicating the impact of market price fluctuations on its investment portfolio.
- Macy's Performance Overview: Despite challenges like low margins and inventory risks, Macy's reported $4.7 billion in revenue in Q3, achieving its strongest comparable sales growth in 13 quarters, showcasing resilience in the retail market.
- Investor Focus: The sale reflects Dupree's strategic shift towards income and defensive investments; although Macy's has outperformed the S&P 500, it remains a tactical holding rather than a core investment, highlighting caution towards cyclical retailers.
See More
Nike Plans to Cut 775 Jobs Amid Automation Push
- Job Cuts Announcement: Nike plans to eliminate 775 positions at U.S. distribution centers as part of its ongoing automation initiative, reflecting a broader restructuring trend in the retail sector that could impact operational efficiency and market competitiveness.
- Historical Layoffs: This reduction follows the disclosure of 1,000 corporate job cuts last summer, indicating that Nike is implementing aggressive cost-control measures in response to weak sales and declining margins.
- Technical Analysis: Nike's stock is currently priced at $63.66, trading 1.2% below its 20-day simple moving average and 4.6% below its 100-day simple moving average, indicating a bearish short-term trend that requires cautious investor response.
- Market Reaction: Following the announcement, Nike shares fell by 2.05%, nearing their 52-week lows, which challenges market confidence in the company's future performance, with key support at $63.00, below which further declines may occur.
See More
Nike Cuts 775 Jobs to Enhance Profitability Amid Industry Restructuring
- Layoff Announcement: Nike has announced the layoff of 775 employees at its U.S. distribution centers as part of its strategy to enhance profitability and expedite automation, reflecting a broader trend of restructuring in the retail sector.
- Historical Cuts: This layoff follows the previous announcement of 1,000 corporate job cuts last summer, primarily affecting distribution center positions in Tennessee and Mississippi, indicating the company's response to sluggish sales and declining margins.
- CEO Strategic Shift: CEO Elliott Hill has indicated that while Nike is working to revamp its operations, the journey back to growth will not be linear, presenting an uncertain outlook for investors, particularly regarding challenges in the North American wholesale channel and the Chinese market.
- Stock Performance: Despite facing numerous challenges, Nike's stock has declined by 14.01% over the past year, yet it has shown slight recovery recently, suggesting a cautious optimism in the market regarding its potential for recovery.
See More
Department Store Downturn Continues as Macy's Closes 14 Locations
- Industry Downturn Intensifies: According to the 2026 Business of Fashion survey by McKinsey, 46% of fashion executives anticipate worsening conditions in 2026, indicating a lack of confidence in the retail market that could lead to reduced consumer choices and further impact sales performance.
- Macy's Store Closures: As part of its 'Bold New Chapter' restructuring plan, Macy's will close 14 locations across 11 states in 2026, following the closure of 50 stores in 2024 and 66 in 2025, demonstrating its commitment to navigating market challenges.
- Saks Off 5th Bankruptcy Liquidation: Saks Off 5th Holdings LLC received bankruptcy court approval in January 2026 to liquidate all merchandise from its e-commerce platform, expected to last up to eight weeks, reflecting the retailer's desperate measures amid liquidity constraints.
- Consultant Fee Structure: Under the consulting agreement with GA Retail Solutions, Saks Off 5th Digital will pay a retail base fee of 2% to 2.25% of gross proceeds, with a minimum fee of $250,000, alongside 5% on wholesale sales and 15% on FF&E sales, highlighting the financial pressures during the liquidation process.
See More
Macy's Sales Growth and Strategic Turnaround
- Sales Growth Trend: Macy's reported a 3.2% same-store sales increase in Q3 2025, with Bloomingdale's leading at 9%, indicating potential brand revival despite overall sales being impacted by store closures.
- Strategic Turnaround Plan: The 'Bold New Chapter' strategy implemented in 2024 aims to enhance performance by closing underperforming stores and expanding luxury brands, which is expected to strengthen Macy's market competitiveness.
- Strong Stock Performance: As of January 21, 2023, Macy's stock delivered a total return of 55%, significantly outperforming the S&P 500's 15%, reflecting investor confidence in its recovery.
- Valuation Appeal: Although the P/E ratio has risen from 8 to 12, Macy's valuation remains attractive compared to the market, especially against the S&P 500's 31 P/E, indicating potential investment opportunities.
See More
