Can Macy’s (M) Regain Investor Confidence Following Earnings?

What's Happening With M View more about M >

Macy’s (M) reports its first-quarter earnings before the market open May 15. Analysts forecast the retailer to post earnings of $0.36 per share on revenue of $5.53 billion. During the same period last year Macy’s earned $0.48 on sales of $5.54 billion. M shares have dropped 24.9% on the year.

Technical Analysis

M stock was recently trading at $22.36 down $19.63 from its 12-month high and $0.25 above its 12-month low. InvestorsObserver’s Stock Score Report gives M a 23 long-term technical score and a 28 short-term technical score. The stock has recent support above $22.2 and recent resistance below $26. Of the 10 analysts who cover the stock 1 rate it Strong Buy, 0 rate it Buy, 6 rate it Hold, 1 rate it Sell, and 2 rate it Strong Sell, M gets a score of 39 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Macy’s has been greatly underperforming the market, and shares are currently trading just above the stock’s 52-week low. Like all traditional brick-and-mortar retailers, Macy’s finds itself struggling to compete in the digital space. Macy’s has been investing heavily in its online business but Wall Street once to see more before strength to return to the stock. Sentiment is bearish on the stock, which currently trades at just 6 times earnings. Earnings have been falling, with profits down 8% per annum the last five years. Conditions are slightly improving and analysts expect earnings to drop at a slow 5% annual pace over the next five years. Macy’s has consistently reported better than expected quarterly profits, and another strong report could bring much needed support in the stock and all shares to start making back some of its recent losses. M stock is currently trading at $22.43 with an average price target of $27.50.

About Macy's Inc

Macy's operates about 690 department stores under the brands Macy's and Bloomingdale's, and more than 180 specialty stores under the names Macy's Backstage, Bloomingdale's The Outlet, and Bluemercury. Macy's also operates e-commerce sites, owns 65% of a Chinese e-commerce joint venture, and licenses two Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances constitute approximately 61% of Macy's sales. The retailer has headquarters in Cincinnati and New York City.

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