M - Macy's: Encouraging Q1 Points To Brighter Long-Term Prospects
2024-05-21 12:57:29 ET
Summary
- Macy's, Inc. quarterly results show stable sales and solid expense management, with its go-forward stores performing better than closing ones.
- The company raised its EPS guidance and expects its go-forward stores to return to growth this year.
- Macy's is positioned for sales growth and offers an attractive investment opportunity with a 10% free cash flow yield.
Shares of Macy's, Inc. ( M ) were broadly flat on Tuesday in response to an encouraging set of quarterly results . This has been a solid year for Macy’s, whose shares are up about 28%, and so some of this good news may have been expected. I last covered Macy’s in February , when I reiterated shares as a “Buy,” and since that recommendation, the stock is up 10% vs the 4% gain in the market. I previously argued shares could approach $22-24, given my view that same-store sales could turn positive by year-end. With new results, now is a good time to revisit that view. My confidence in its turnaround is growing....
Macy's: Encouraging Q1 Points To Brighter Long-Term Prospects