To start off, I want to make it clear that Macy's is not a company that will grow it's business over the next few years. The company will continually be challenged by Amazon and others. However the company is currently undervalued.
In 2 months the company has gone from touching its 2 year high, to 5 year low due (seriously, look at the charts) to missing EPS estimates dramatically for Q3 (-57.50%) and having other retailers suffer similar fates. The previous 4 quarters had them beating EPS estimates (Q2 35.00%, Q1 14.29%, Q4 12.37%, Q3 3.70%).
The share price is currently $29.63. 20 Analysts have set price points, with $31 being the lowest, $36.70 being the average, and $45.00 being the high estimate.
No firm/analysts is labeling Macy's as a 'sell' or 'underperform'. The bulk are 'hold', then 'strong buy', then 'buy'.
For those who love vanguard, vanguard is the largest shareholder with 9.19%
Macy's has also increased it's dividend over the years, and is currently at 5%
Back to the share price, why analysts arent recommending to sell, and why the company is undervalued: Macy's has a market cap of 9.1B, and third party estimates of their real estate is 21B. On real estate alone their share price should be $68.70. Even if you completely gut that figure by 50% and ignore the macy's name, current income, and non-real estate assets that puts them at $34.35. http://ift.tt/1ZnouV7
TLDR; Macy's has hit bottom (for now) and is going to rally.
Submitted January 23, 2017 at 08:45PM by Put_It_All_On_Blck http://ift.tt/2kbmuxs
