Trade-Ideas: Macy's (M) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader 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 $371.0 million.
- M is up 2.1% today from today's close.
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More details on M:
Macy's, Inc., together with its subsidiaries, operates stores, Websites, and mobile applications in the United States. Its stores and Websites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The stock currently has a dividend yield of 5%. M has a PE ratio of 1. Currently there is 1 analyst that rates Macy's a buy, 1 analyst rates it a sell, and 12 rate it a hold.
The average volume for Macy's has been 5.1 million shares per day over the past 30 days. Macy's has a market cap of $9.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.80 and a short float of 3.1% with 0.80 days to cover. Shares are down 14% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Macy's as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
Highlights from the ratings report include:
- 39.07% is the gross profit margin for MACY'S INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.01% trails the industry average.
- M, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Currently the debt-to-equity ratio of 1.84 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.22, which clearly demonstrates the inability to cover short-term cash needs.
- Net operating cash flow has significantly decreased to $8.00 million or 84.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Macy's Ratings Report.
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