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Analyst Blog

Shares of Macy’s, Inc. (M - Analyst Report) recorded a new 52-week high of $47.23 on May 10, rising approximately 23.9% year to date. Based on the current price, Macy’s is 0.7% above the Zacks Consensus average analyst price target of $46.91.

Moreover, it currently trades at a forward P/E of 11.9x, a 4.8% discount to the peer group average of 12.5x. Additionally, the company’s long-term estimated EPS growth rate is 10.7%, which is relatively healthy.

Macy’s has been taking prudent steps to augment sales, profitability and cash flow. These include integration of operations, consolidation of divisions and customer-centric localization initiatives. To help drive traffic, Macy’s continues to focus on price optimization, inventory management and merchandise planning to generate long-term profitability, which is well evident from its record of beating the quarterly earnings expectations.

If we look at the company’s earnings surprise history, this Zacks Rank #3 (Hold) stock has outperformed the Zacks Consensus Estimate for 11 straight quarters by an average of 38.5%.

Going forward, Macy’s is expected to continue with its upbeat performance through the My Macy's localization initiatives, omnichannel integration, robust online sales and effective cost management.

The company is slated to report its first-quarter 2013 financial results on May 15, 2013. The current Zacks Consensus Estimate for the quarter stands at 53 cents a share, reflecting an estimated year-over-year increase of about 23.8%.

Alongside, companies like The Gap, Inc. (GPS - Analyst Report), Tiffany & Co. (TIF - Analyst Report) and Whirlpool Corp. (WHR - Analyst Report) attained new 52-week highs on Friday.

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