Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Macy's as such a stock due to the following factors:
- M has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $378.0 million.
- M has traded 5.5 million shares today.
- M is trading at a new lifetime high.
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More details on M:
Macy's, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. The stock currently has a dividend yield of 2%. M has a PE ratio of 14.4. Currently there are 7 analysts that rate Macy's a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Macy's has been 5.3 million shares per day over the past 30 days. Macy's has a market cap of $19.1 billion and is part of the services sector and retail industry. The stock has a beta of 0.61 and a short float of 2.1% with 1.15 days to cover. Shares are up 30.2% year to date as of the close of trading on Friday.
rates Macy's as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- M's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MACY'S INC has improved earnings per share by 30.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MACY'S INC increased its bottom line by earning $3.29 versus $2.91 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $3.29).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Multiline Retail industry average. The net income increased by 22.1% when compared to the same quarter one year prior, going from $145.00 million to $177.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Multiline Retail industry and the overall market, MACY'S INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Macy's Ratings Report.