Assessing Macy's (M) Valuation After Recent Share Price Pullback

Why Macy's Stock Is on Investors' Radar

Macy's (M) is drawing attention after recent share price swings, with the stock down about 2% over the past day and roughly 6% over the past week, despite a small gain over the past month.

See our latest analysis for Macy's.

Set against a weaker 90 day share price return of a 7.13% decline and an 8.44% decline year to date, Macy's 1 year total shareholder return of 49.99% shows how much dividends and previous gains have mattered, with recent momentum clearly fading from earlier strength.

If this retail pullback has you thinking about where else capital might work harder, it could be a good moment to broaden your search and check out 22 top founder-led companies.

With Macy's trading at $20.83, sitting at roughly a 15% discount to one estimate of intrinsic value and only a small gap to the $21.80 analyst target, you have to ask: is this a genuine value opportunity, or is the market already pricing in its future growth potential?

Most Popular Narrative: 14.7% Undervalued

According to the most followed narrative for Macy's, the fair value sits at $24.43, which is meaningfully above the last close at $20.83 and sets up a clear valuation gap for investors to weigh.

Bull

• Macy’s owns significant real estate that can be sold to provide liquidity, pay down debt, and finance new investments. The firm intends to raise about $600 million-$750 million from real estate sales over the next three years.

Read the complete narrative.

This narrative, built by julio, focuses on how Macy's future revenue path, profitability mix and chosen profit multiple work together to support that higher fair value. It connects real estate moves and the scale of its omni channel business to a detailed set of assumptions that the market has not fully reflected in the current $20s share price.

Result: Fair Value of $24.43 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, those assumptions could be challenged if store closures continue to weigh on sales, or if takeover hopes fade and the share price loses that support.

Find out about the key risks to this Macy's narrative.

Next Steps

If this mix of upside and concern feels finely balanced, do not wait on others to decide the story for you. Instead, check out 4 key rewards and 4 important warning signs.

Looking for more investment ideas?

If Macy's has sharpened your focus, do not stop here. The broader market is full of opportunities that could fit your goals even better.

• Target stability first by checking out companies in our 78 resilient stocks with low risk scores that aim to keep risk scores on the lower side.
• Hunt for value by scanning our 51 high quality undervalued stocks, where solid fundamentals meet prices that may not fully reflect them.
• Prioritise resilience and financial strength with the solid balance sheet and fundamentals stocks screener (40 results), so you are not relying only on the next headline to support your thesis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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