Macy's Q4 Preview: High Probability Of An Earnings Beat, Buying The Stock

Louis Gerard2.38K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryMacy’s remains a Buy as it executes a strategic overhaul focused on profitable store closures and small-format expansion.M is undervalued on both real estate and operating metrics, with a P/E of 7.4 and a 22.2% FCF yield supporting a 4.38% dividend.Management targets a return to low single-digit comparable sales growth and mid-single digit EBITDA growth by 2026 despite near-term revenue declines.The upcoming quarter will test M’s ability to offset tariff headwinds and promotional pressures, with Bloomingdale’s strength as a key positive driver. Alexander Shapovalov/iStock Editorial via Getty Images Introduction Macy's, Inc. (M) went through a relatively strong patch since I rated it a Buy back in early September 2025, though it saw its stock price recently decline over the pastThis article was written byLouis Gerard2.38K FollowersFollowAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well.

Through Seeking Alpha, I aim to connect with like-minded investors, share insights, and build a collaborative community of individuals seeking superior returns and informed decision-making, currently on a quest to review every public company.Analyst’s Disclosure: I/we have a beneficial long position in the shares of M either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.