Both stocks are rated buy at TheStreet Ratings.
The department store retailer Tuesday reported fourth-quarter earnings of $745 million, or $1.74 a share, up from year-ago earnings of $667 million, or $1.55 a share."Importantly, management's track record of over-delivering is impressive given 35.5% average upside over the past years versus M's initial guidance midpoint," JPMorgan analysts wrote in a report Tuesday. "Out of 4Q, we continue to view overweight-rated Macy's as a core portfolio holding given market share leadership in the moderate space (brands, fashion, price) and gross margin drivers on the horizon including Omnichannel and price optimization (neither of which are benefitting results today)." Shares of Macy's hit a 52-week high Tuesday of $38.22. The stock's 52-week low of $22.50 was set on March 23. Macy's has an estimated price-to-earnings ratio for next year of 15.39; the average for broad-line retailers is 27.28. For comparison, J.C. Penney (JCP) and Wal-Mart (WMT) both have lower forward P/Es of 23.37 and 11.1 respectively. Of the 19 analysts who cover Macy's, 15 rated it buy and four rated it hold. TheStreet Ratings gives Macy's a B grade and $43.67 price target. The stock has risen 14.01% year to date.