The Chaikin Power Gauge RatingTM stock report for Macy’s, Inc. $M is very bullish due to very strong earnings performance, very positive expert opinions and bullish price/volume activity. The rating also reflects poor financial metrics. M’s earnings performance is very strong as a result of better than expected earnings in recent quarters and consistent earnings over the past 5 years.
Financial Metrics Rating – Bearish
M’s financial metrics are poor. The company is carrying too much long-term debt relative to its industry group and may be overvalued. The rank is based on a high long-term debt to equity ratio relative to its industry group, high price to book value ratio, high return on equity, high price to sales ratio and relatively high cash flow.
Earnings Performance Rating – Very Bullish
M’s earnings performance has been very strong. The company has outperformed analysts’ earnings estimates and has a stable 5 year earnings trend. The rank is based on poor EPS growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bullish
Price and volume activity for M is bullish. M has outperformed the S&P 500 over 26 weeks and is experiencing sustained buying. The rank for M is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.
Expert opinions about M are very positive. Analysts are raising their EPS estimates for M and insiders are net buyers of M’s stock. The rank for M is based on analysts revising earnings estimates upward, a low short interest ratio, insiders purchasing stock, optimistic analyst opinions and price strength of the stock versus the Nonfood Retail-Wholesale industry group.