Macy's (M) Raises Guidance And Finishes Buyback, Is The Stock Still Below Fair Value?

Macy's (M) just paired a fresh quarter of earnings with updated guidance and a completed multiyear buyback, giving investors a dense cluster of new numbers to dissect around the stock.

At around $21.64 per share, Macy's has slipped over the past month and quarter, with the 30 day and 90 day share price returns down 6.84% and 10.36%. At the same time, the 1 year total shareholder return of 27.25% and 3 year total shareholder return of about 2.3x hint that investors who stayed through earlier volatility have still seen meaningful gains. This suggests that recent earnings, guidance changes, AI supply chain work and the completed buyback are being weighed against fresh concerns about its competitive position.

Scan beyond Macy's and see how other retailers with stronger balance sheets and cash flows line up in our curated list of solid balance sheet and fundamentals (23 results) for comparison.

Bulls point to higher earnings, raised guidance and a hefty completed buyback. Bears focus on share price weakness and competitive pressure. Which side do Macy's current valuation markers lean toward next?

Most Popular Narrative: 5% Undervalued

Macy's fair value estimate of $22.77 sits modestly above the recent $21.64 close, which points to a small discount that hinges on whether its transformation work really sticks.

Growing market share in both luxury (Bloomingdale's, Bluemercury) and off-price concepts is leveraging Macy's unique position to attract a broader, multigenerational customer base in major metros, which supports future topline revenue growth and diversification amid urbanization and increased demand for accessible retail experiences.

See why 20 investors see Macy's as 5% undervalued.

Result: Fair Value of $22.77 (UNDERVALUED)

Still, the narrative around Macy's can shift quickly if e-commerce rivals continue drawing shoppers online, or if tariffs and pricing actions further pressure already thin margins.

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

Next Steps

Mixed on whether Macy's story leans positive or negative right now. Move quickly to test that view against the numbers by weighing 3 key rewards and 3 important warning signs.

Looking For More Ideas Beyond Macy's?

If you stop at Macy's, you risk missing out on other compelling setups. Give yourself options by lining up a few fresh ideas side by side.

• Target a mix of quality and value by scanning companies that screen as potential bargains using the 29 high quality undervalued stocks.
• Prioritize resilience in choppy markets and sort for businesses that score well on stability and downside protection with the 30 resilient stocks with low risk scores.
• Hunt for potential up and comers with strong fundamentals that the crowd may have overlooked through the 16 high quality undiscovered gems.

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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