GET DAILY SIGNALSMacy’s (M, $25.29) identifies five key areas for investment in 2019
The department store chain, Macy’s, has restructuring plans underway to boost its goal of saving $100 million annually and using that money for growth initiatives in 2019. With the restructuring, it plans to bring in some structural major changes but with a job cut.
But given the retail scenario today, Macy’s goals are not without challenges. With shoppers moving increasingly online, the Company’s 600 department stores across the U.S. need to justify their relevance. Some of Macy’s brands like Nike (NKE) and Coach have now opened standalone stores and at the same time have also ramped up their own websites.
Taking into account this current retail situation, Macy’s has decided to invest in five select areas in 2019. First is its Growth150 Plan where the company will further upgrade its more profitable stores with new lighting, fixtures and merchandise.
Second, focusing on Macy’s Backstage, the off-price business of the company that sells apparel and home goods at hefty discounts. Besides the already existing 120 Backstage locations, the Company plans to open 45 more this year as sales at Macy’s stores with Backstage shops inside are up 5%, on average.
Third, Macy’s will collaborate with its vendors more efficiently so that fresh and up-to-date goods arrive quicker in their stores.
Fourth, the Company will upgrade its app to further boost its online sales.
Finally, it will invest in the more profitable categories like dresses, fine jewelry, women’s footwear and beauty accessories.
The scope of the challenges Macy's faces, however, will not be fully addressed by just these upgrades. Its real estate is still the biggest challenge, and the company is now trying to find complementary uses of its some of its flagship locations, including the iconic Macy’s store in Herald Square in New York.
M in upward trend: 10-day moving average crossed above 50-day moving average on October 15, 2026
The 10-day moving average for M crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 16 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on M as a result. In 71 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 81%.
M moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +3.25% 3-day Advance, the price is estimated to grow further. Considering data from situations where M advanced for three days, in 209 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
The Aroon Indicator entered an Uptrend today. In 146 of 181 cases where M Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 81%.
Bearish Trend Analysis
The 10-day RSI Indicator for M moved out of overbought territory on October 16, 2026. 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 28 similar instances where the indicator moved out of overbought territory. In 21 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 75%.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
M broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 43 (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 SMR rating for this company is 54 (best 1 - 100 worst), indicating strong sales and a 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 74 (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.
The Tickeron Profit vs. Risk Rating rating for this company is 81 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. M’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.289) is normal, around the industry mean (-9.873). P/E Ratio (8.689) is within average values for comparable stocks, (-125.192). Projected Growth (PEG Ratio) (2.624) is also within normal values, averaging (1.329). Dividend Yield (0.032) settles around the average of (0.032) among similar stocks. P/S Ratio (0.262) is also within normal values, averaging (19.276).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an operator of department stores
Industry DepartmentStores
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