Macy's: Strong Execution Beats Financial Engineering

 

  • Macy's smashed FQ3'21 results as the company topped 2019 levels.
  • The company upped FY21 EPS targets by over $1 to $4.66 per share.
  • The stock if far too cheap at 8x FY21 EPS targets.
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Hedge funds might want Macy's (M) to spin off the e-commerce business, but the department store retailer just reported numbers supportive of continuing the current omnichannel business. As the company pushes more into a digital marketplace platform, the stock remains cheap. My investment thesis remains Bullish on Macy's due to the fundamental shift in the business.

Read the full article on Seeking Alpha. 

Disclosure: Long M. Please review the disclaimer page for more details.

Update - Dec. 10 

Macy's has seen a rather remarkable collapse in the last month. The Cowen is hardly more than pointing out the stock should rally back to previous highs. The opportunity is at least a double from here. 

  • Cowen calls Macy's (M -2.0%) one of its best ideas for 2022 as it reiterates an Outperform rating on the stock into the new year.
  • Analyst Oliver Chen forecasts Macy's (NYSE:M) will take market share from department store peers and grow profitably as a leading omni-retailer.
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