The Analyst Verdict: Macy's In The Eyes Of 8 Experts

Analysts' ratings for Macy's M over the last quarter vary from bullish to bearish, as provided by 8 analysts.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $16.62, along with a high estimate of $20.00 and a low estimate of $9.00. This upward trend is apparent, with the current average reflecting a 0.3% increase from the previous average price target of $16.57.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Macy's by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Macy's. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Macy's compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Macy's's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Macy's analyst ratings.

Delving into Macy's's Background

Founded in 1858 and based in New York City, Macy's operates about 500 stores under the Macy's nameplate, nearly 60 stores under the Bloomingdale's (full-price and outlet) and Bloomie's nameplates, and more than 160 freestanding Bluemercury specialty beauty stores. Macy's also operates e-commerce sites and licenses Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances constituted 62% of Macy's 2023 sales.

Macy's: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: Macy's's revenue growth over 3 months faced difficulties. As of 31 October, 2024, the company experienced a decline of approximately -2.68%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Macy's's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.57%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Macy's's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.66%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Macy's's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.17%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Macy's's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.4.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.