Undervalued And Major Catalysts Make Macy's A Core Portfolio Position
Macy's easily surpassed reduced Q4 results due to a snapback in sales from cold weather in January.
Even after the recent rally, the stock trades far below the intrinsic value of the real estate assets and a profitable retail operation.
With several catalysts in 2016 and beyond such as the new store concepts and capital returns, the stock is a core position in a value portfolio.
The final Q4 results for Macy's (NYSE:M) indicates that weather truly impacted the apparel business over the holidays. The limited cold weather in the prime Northeast stores prior to the holidays was highly harmful to results.