Why Macy's, Inc. (NYSE:M) Could Be Worth Watching
NYSE:M) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Macy’s’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.” data-reactid=”28″>While Macy’s, Inc. (NYSE:M) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Macy’s’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Macy’s ” data-reactid=”29″> Check out our latest analysis for Macy’s
Is Macy’s still cheap?
According to my valuation model, Macy’s seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Macy’s today, you’d be paying a fair price for it. And if you believe the company’s true value is $7.47, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Macy’s’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Macy’s?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Macy’s, it is expected to deliver a negative earnings growth of -0.4%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Macy’s.” data-reactid=”53″>So if you’d like to dive deeper into this stock, it’s crucial to consider any risks it’s facing. To help with this, we’ve discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Macy’s.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Macy’s, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
