This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Shopping for Macy's is a Super Smart Move

The obituary for the department store has been written many times, but Pat Dunkerley, portfolio manager of the Scout Mid Cap Fund (UMBMX) says Macy's (M - Get Report) continues to thrive in the face of doubters.

"Their MyMacy's localization initiative is bringing the right merchandise into the stores and their comp sales are moving higher," says Dunkerley.

The $822 million fund, which garners a full 5 stars from Morningstar (MORN), is up 1.5% over the past year, better than 92% of its peers. Over the past five years, the fund has returned an average of 8.3% annually, outpacing 99% of its Morningstar rivals.

Top Videos of 2011

Another well-known name that Dunkerley likes and that also boasts a large number of Wall Street skeptics is CBS (CBS - Get Report). Despite worries about online media competition, Dunkerley says a heated presidential election in 2012 could boost returns at the television network.

"I think the acrimonious political environment in the U.S. is causing an arms race. Candidates are spending more money on these political ads. That's good for networks like CBS. So there are a lot of drivers for this stock," says Dunkerley.

And while many say a recovery in the U.S. economy will increase new car sales at the expense of service centers like AutoZone (AZO), Dunkerley says there will be no shortage of auto repairs as the average age of an automobile on the road has now hit 11 years.

"The U.S. economy is expanding so I think car sales will go up but cars are still very old so AutoZone is going to do very well. The average age of a vehicle is near a record. They are the leading retailer on the do it yourself side, plus, they are repurchasing their shares," says Dunkerly.

Finally, Dunkerley is a fan of Herbalife (HLF - Get Report) as an emerging markets play saying that "when their incomes go up, they eat more calories. So they gain weight. They need a weight loss solution."
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CBS $55.91 0.00%
CXO $116.17 0.00%
HLF $57.95 0.00%
M $39.59 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs