Macy’s (M): Evaluating Value After Trade Tensions Ease and Shares Rally

Macy's (M) stock jumped 5% in the afternoon session after President Trump eased his rhetoric on trade with China. This move calmed investor nerves about tariff escalation and supported a broad lift among department store shares.

See our latest analysis for Macy's.

Today’s surge is the latest jolt in what has been a remarkably turbulent year for Macy’s, as the stock has already posted a 47.97% share price return over the past 90 days and a 19.90% total shareholder return over the last twelve months. Recent events, including their raised forecasts ahead of the holiday season and frequent double-digit price swings, point to shifting market expectations and renewed interest from investors, even as core business challenges remain in focus.

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But with the stock’s latest leap, investors may be wondering if Macy’s still offers value at these levels or if the optimism is already reflected in its share price, leaving limited room for fresh upside.

Most Popular Narrative: 27% Undervalued

According to the top narrative by julio, Macy's last close of $17.83 stands well below its calculated fair value of $24.43. The narrative suggests the market is missing some key ingredients that could drive the stock higher, even as volatility keeps investors guessing.

Macy’s owns significant real estate that can be sold to provide liquidity, pay down debt, and finance new investments. The firm intends to raise about $600 million to $750 million from real estate sales over the next three years.

Read the complete narrative.

Want to know what bold assumptions could justify such a lofty price target? The secret sauce involves unexpected digital strength and strategic asset sales. Which number in their financial roadmap could surprise everyone? Uncover the full narrative to find out.

Result: Fair Value of $24.43 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent store closures and declining sales trends may challenge bullish assumptions and put pressure on Macy’s ability to sustain its recent momentum.

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

Build Your Own Macy's Narrative

If you see the story differently or want to dig into the numbers yourself, you can craft a fresh Macy’s narrative in just a few minutes. Do it your way.

A great starting point for your Macy's research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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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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