Earlier this week, the Cincinnati-based retailer reported better-than-expected 2015 fourth quarter results.
The company's fourth quarter "reflected upside from unforeseen expense savings and asset sale gains, while top-line and margin pressure continued to point to challenging fundamentals," Barclays said. The firm expects that trend to continue during 2016.
However, Barclays expects comparative sales to decline 1.5% to 2% during 2016 due to headwinds such as reduced tourism. Additionally, Macy's may struggle to pursue new growth initiatives, the firm added.
Macy's stock is down 2.06% to $41.45 in pre-market trading on Wednesday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. As a counter to these strengths, the team also finds weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: M