Zacks has rated Macy's (M) as a #1 Strong Buy with an 'A' Value grade, indicating the stock is currently undervalued. This assessment is underpinned by favorable valuation metrics, including a P/E ratio of 9.15, a P/B of 1.06, and a P/CF of 3.47, all significantly below their respective industry averages of 15.64, 2.21, and 7.36, suggesting a strong value investment opportunity.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One company to watch right now is Macy's (M - Free Report) . M is currently sporting a Zacks Rank 1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 15.64. Over the last 12 months, M's Forward P/E has been as high as 9.61 and as low as 4.69, with a median of 6.13. Investors should also recognize that M has a P/B ratio of 1.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.21. Over the past 12 months, M's P/B has been as high as 1.21 and as low as 0.61, with a median of 0.86. Finally, we should also recognize that M has a P/CF ratio of 3.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. M's current P/CF looks attractive when compared to its industry's average P/CF of 7.36. Within the past 12 months, M's P/CF has been as high as 5.04 and as low as 1.92, with a median of 2.70. These are just a handful of the figures considered in Macy's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that M is an impressive value stock right now. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Image: Bigstock Is Macy's (M) Stock Undervalued Right Now? While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One company to watch right now is Macy's (M - Free Report) . M is currently sporting a Zacks Rank 1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 15.64. Over the last 12 months, M's Forward P/E has been as high as 9.61 and as low as 4.69, with a median of 6.13. Investors should also recognize that M has a P/B ratio of 1.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.21. Over the past 12 months, M's P/B has been as high as 1.21 and as low as 0.61, with a median of 0.86. Finally, we should also recognize that M has a P/CF ratio of 3.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. M's current P/CF looks attractive when compared to its industry's average P/CF of 7.36. Within the past 12 months, M's P/CF has been as high as 5.04 and as low as 1.92, with a median of 2.70. These are just a handful of the figures considered in Macy's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that M is an impressive value stock right now. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Macy's (M) is presented as a compelling value investment, underpinned by its Zacks Rank 1 (Strong Buy) classification and an 'A' grade for Value. The bullish thesis is primarily quantitative, highlighting significant discounts on key valuation metrics compared to industry peers. Specifically, Macy's P/E ratio of 9.15 is substantially lower than the industry average of 15.64. The company also appears attractive on an asset and cash flow basis, with a Price-to-Book (P/B) ratio of 1.06 versus the industry's 2.21 and a Price-to-Cash-Flow (P/CF) ratio of 3.47 against an industry average of 7.36. While these figures indicate a clear valuation gap, it is also noted that the stock's current P/E, P/B, and P/CF ratios are trading above their respective 12-month medians of 6.13, 0.86, and 2.70. The analysis concludes that the combination of these attractive valuation multiples and a strong underlying earnings outlook positions Macy's as a potentially undervalued security in the current market.
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extremely positive
Sentiment Score
0.85
Ticker Sentiment
