Macy's: The Price Tag Is No Longer Worth The Risk (Rating Downgrade)
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryMacy's is downgraded from 'buy' to 'hold' due to persistent revenue and profit declines.Despite operational pressures, M remains cash generative and trades at low valuation multiples versus peers.Store closures and declining physical footprint signal structural headwinds, but select initiatives show localized growth.Management's Reimagine 125 and Bloomingdale's strategies yield positive comps, yet the overall outlook remains cautious.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Alexander Shapovalov/iStock Editorial via Getty Images Back in July of 2024, I wrote a bullish article about retailer Macy's (M). At that time, the stock had been rising. This was because of a higher buyout offer that hadThis article was written byDaniel Jones36.21K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.