On Mar 8, 2013, Zacks Investment Research upgraded Macy’s Inc. (M - Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Macy’s has been witnessing rising earnings estimates owing to better-than-expected fourth-quarter fiscal 2012 results, on the back of My Macy's localization initiatives, omnichannel integration, robust online sales and effective cost management. The company declared impressive results on Feb 26, 2013, wherein earnings of $2.05 per share surpassed the Zacks Consensus Estimate of $1.98 by 3.5%.
This leading department store retailer in the United States has outperformed the Zacks Consensus Estimate for 11 straight quarters by an average of 38.5%. The long-term expected earnings growth rate for the stock is 10.9%.
Macy’s total sales grew 7.2% to $9,350 million in the quarter from $8,724 million in the year-ago period, and came ahead of the Zacks Consensus Estimate of $9,327 million. Comparable-store sales for the quarter climbed 3.9%.
Macy’s is one such company that has been performing fairly well. The company has been taking prudent steps to augment sales, profitability and cash flows. 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.
Buoyed by healthy results, management now projects fiscal 2013 earnings between $3.90 and $3.95.
The Zacks Consensus Estimate for fiscal 2013 rose 2.1% to $3.90 per share over the last 30 days. For fiscal 2014, the Zacks Consensus Estimate advanced 1.4% over the same timeframe to $4.40 per share.
Other Stocks to Consider
The stock worth considering in the non-food retail, wholesale sector includes Express Inc. (EXPR - Free Report) , which holds a Zacks Rank #1 (Strong Buy) and is expected to continue with its upbeat performance. Other stocks that should be merited are New York & Company Inc. and Urban Outfitters Inc. (URBN - Free Report) , both carrying a Zacks Rank #2 (Buy).