Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Macy’s Inc. (NYSE:M) shares tumbled to a 52-week low of $12.51, reflecting a broader downturn in the retail sector as the iconic department store chain grapples with changing consumer habits and a challenging economic environment. According to InvestingPro analysis, the stock currently trades at an attractive P/E ratio of 6x and offers a substantial dividend yield of 5.7%. Over the past year, Macy’s stock has experienced a significant decline, with a 1-year change showing a decrease of 35.72%. Despite generating $23 billion in revenue, this downturn highlights the struggles faced by traditional brick-and-mortar retailers in adapting to the rapidly evolving retail landscape, where e-commerce and shifting consumer preferences continue to reshape the industry. InvestingPro subscribers have access to 16 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of Macy’s financial health and future prospects.
In other recent news, Macy’s reported fourth-quarter earnings per share of $1.80, exceeding expectations of $1.54. Despite this, analysts have adjusted their outlooks due to various factors. TD Cowen, Telsey Advisory Group, Citi, JPMorgan, and CFRA all revised their price targets for Macy’s shares, with targets now ranging from $13 to $15. TD Cowen and Citi both set their targets at $14, with a Hold and Neutral rating, respectively, citing ongoing challenges in the retail sector. Telsey Advisory Group reduced its target to $15, maintaining a Market Perform rating, noting the company’s strategic initiatives, including store closures and luxury expansions.
JPMorgan downgraded Macy’s from Overweight to Neutral, lowering the price target to $14, due to mixed performance in sales and future earnings projections. CFRA set the lowest target at $13, maintaining a Hold rating, and highlighted the stagnant sales growth expected in the department store sector. Macy’s forecasts for fiscal year 2025 include an EPS range of $2.05 to $2.25, which falls short of previous expectations, and same-store sales are projected to decline. Analysts have noted that Macy’s management is taking a cautious approach due to macroeconomic uncertainties, such as inflation and changing consumer habits.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.