FinkAvenue
Investment Thesis
Macy’s (NYSE:M) stock has been hit hard by the declining market. Shares have dropped by nearly 40% year to date. The company is now trading at a very cheap valuation.
I think that Macy's could be well-positioned for
Macy's: Is It Time To Buy The Dip On This Industry Leader?
Summary
- Macy's stock has been hit hard lately. Shares are now trading at a very cheap valuation.
- Bloomingdale's and Bluemercury have performed well. The nameplates' growth has partially offset a decline in sales from Macy's stores.
- The company has a surprisingly healthy inventory position. This is important in what is expected to be a very competitive second half.
- The balance sheet has a high debt position relative to market cap. It also seems that management is prioritizing liquidity over returning cash to shareholders.
I'm searching for buy and hold stocks that will consistently outperform the market. I invest in both traditional value stocks and fast-growing companies trading at cheap valuations. My primary focus is on the tech, consumer and communication services sectors.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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