New Lifetime High Reached: Macy's (M)

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 Macy's ( M) 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 $230.2 million.
  • M has traded 6,547 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 1.7%. M has a PE ratio of 14.7. Currently there are 10 analysts that rate Macy's a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Macy's has been 4.2 million shares per day over the past 30 days. Macy's has a market cap of $21.9 billion and is part of the services sector and retail industry. The stock has a beta of 0.81 and a short float of 2.4% with 2.34 days to cover. Shares are up 13.6% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Macy's as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and expanding profit margins. 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:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.94% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, M should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MACY'S INC has improved earnings per share by 18.0% 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 $3.90 versus $3.29 in the prior year. This year, the market expects an improvement in earnings ($4.49 versus $3.90).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 11.1% when compared to the same quarter one year prior, going from $730.00 million to $811.00 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. Compared to other companies in the Multiline Retail industry and the overall market, MACY'S INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 40.62% 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. Along with this, the net profit margin of 8.81% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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