Looking for a Cheap Retailer to Buy on the Upswing? Here's an Idea
Few industries were as devastated by the pandemic as major retailers, particularly those who rely on in-store experiences. The "big box" retailers were among those hit hard: think Macy's, JC Penney's, Nordstrom, and Kohl's.
But as the pandemic risk slowly but surely fades, many of these battered down retailers may present opportunities for investors to buy on the upswing. And compared to Nordstrom and Kohl's (see analysis below), Macy's is looking undervalued.
Macy's posted a better-than-expected holiday shopping season. Net sales declined -18.7%, but that was better than the -22.6% decline analysts expected. Anytime a company's actual earnings are better than expected, it is usually good news for the stock price.
Net income was also a positive surprise. Macy's earned $160 million in Q4, which widely surpassed the $14.3 million expected by the street. Macy's took big steps to cut costs and said in a statement that it will continue to keep costs at a minimum going forward. Another hint of good news: Macy's reported that the holiday shopping season brought in 7 million new customers, and many of them were younger than the existing customer base. That's good news for the future, particularly if Macy's can continue reinventing its business model to cater to online shoppers.
At the end of the day, Macy's still incurred a full-year loss of $3.9 billion, and retailers in that category face an challenging future. But compared to Kohl's and Nordstrom, Macy's is trading at roughly half the multiple -- meaning investors may have a short-term opportunity to capture a bit of upside on the economic rebound. Below, Tickeron's A.I.dvisor takes a closer look at Macy's, Kohl's, and Nordstrom, with investment insights and detailed fundamental analysis.
M's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for M turned positive on October 24, 2025. Looking at past instances where M's MACD turned positive, the stock continued to rise in of 56 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2025. You may want to consider a long position or call options on M as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where M advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
M may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 187 cases where M Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for M moved out of overbought territory on October 07, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where M declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.129) is normal, around the industry mean (2.336). P/E Ratio (10.636) is within average values for comparable stocks, (33.983). M's Projected Growth (PEG Ratio) (2.141) is slightly higher than the industry average of (0.974). Dividend Yield (0.038) settles around the average of (0.038) among similar stocks. P/S Ratio (0.231) is also within normal values, averaging (4.338).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. M’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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General Information
an operator of department stores
Industry DepartmentStores
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