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The retailer has a new initiative to drum up more business from people between the ages of 13 and 30, according to
"CEO Lundgren pointed to summer 2011 as the inflection point in the selling culture (move from selling to service), equating the transformation to turning a battleship around in the Hudson River," JPMorgan analysts wrote in a March 12 report. "With the My Macy's localization initiative (3rd inning) laying the foundation for growth and Omni-channel benefits (potential 200bps top-line and GPM driver over time) not fully in the numbers today (w/ SG&A spending baked in), we believe Macy's is just leaving port with 3-5 years of consistent double digit EPS growth given by top-line (3-5% SSS), margin expansion (2H12 GPM inflection) and a return of cash to shareholders (share repurchases/dividends)."
Shares of Macy's hit a 52-week high of $40.31 on Wednesday. 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 10.56 times; the average for broad-line retailers is 20.57. For comparison,
J.C. Penney(JCP) has a higher forward P/E of 12.54.
Fifteen of the 19 analysts who cover Macy's rated it buy; four analysts gave the stock a hold rating.
TheStreet Ratings gives Macy's an A+ grade with a buy rating and a
$51.40 price target. The stock has risen 25.87% year to date.