Macy's Inc (M): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Macy's ( M) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Macy's fell $1.74 (-4.3%) to $38.62 on heavy volume. Throughout the day, 13.4 million shares of Macy's exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $38.26-$39.83 after having opened the day at $39.24 as compared to the previous trading day's close of $40.36. Other companies within the Retail industry that declined today were: SUPERVALU ( SVU), down 18.6%, Liquidity Service ( LQDT), down 13.5%, Kohl's ( KSS), down 12%, and ALCO Stores ( ALCS), down 6.7%.
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Macy's, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. Macy's has a market cap of $15.95 billion and is part of the services sector. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 23.2% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Macy's a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Macy's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Stein Mart ( SMRT), up 12.8%, Pacific Sunwear ( PSUN), up 12.5%, QKL Stores ( QKLS), up 7%, and Arden Group ( ARDNA), up 6.5%, were all gainers within the retail industry with Walgreen Company ( WAG) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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