It's A Great Time To Buy Macy's Stock

Summary

• Shares of Macy's have lost more than half of their value since hitting a multiyear high last November.
• While investors are worried about inflation and the potential for a recession, Macy's is much better positioned for a downturn than it was a few years ago.
• With a strong balance sheet and a $1.4 billion share repurchase authorization, Macy's can capitalize on its weak share price to dramatically reduce its share count.
• Macy's stock could rise to $40 or more within a few years.
• Macy's real estate is worth more than the company's current enterprise value and provides meaningful downside protection.

ozgurdonmaz

Less than a year ago, Macy's (NYSE:M) shares soared to a multiyear high of $37.95: more than double the pre-pandemic share price. At the time, Macy's was on the way to posting record adjusted EPS for fiscal 2021. Moreover, investors were salivating about

Analyst’s Disclosure:I/we have a beneficial long position in the shares of M either through stock ownership, options, or other derivatives. 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.

I am also short Jan. 2023 $25 and $32 calls on Macy's and short Jan. 2023 $15 puts on Macy's.