M - Down Over 60% From 2021 Highs This Stock Can Soar Despite Recession Fears
2023-05-27 08:35:00 ET
In recent years, Macy's (NYSE: M) stock has taken shareholders on a roller-coaster ride. After bottoming out below $5 in April 2020, Macy's shares surged during 2021 as sales and earnings recovered rapidly. But after peaking around $40 in November 2021, the stock has sagged again, falling below $15 last week.
Recession fears likely explain the stock's dreadful performance over the past year and a half. Indeed, Macy's stock trades for less than four times earnings today. However, even if a recession begins later this year, Macy's is well positioned to weather it. That makes Macy's shares a great buy for investors who are willing to be patient for a few years.
Buying a consumer discretionary stock -- let alone that of a department store -- might seem like a strange move when inflation remains high and a recession may be looming. However, Macy's is much better off than many other discretionary retailers, especially its rivals in the department store space.
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Down Over 60% From 2021 Highs, This Stock Can Soar Despite Recession Fears