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Macy’s (M) Valuation Check After Recent Share Price Rebound and Long-Term Investor Gains

Simply Wall St · 2d ago

Macy's (M) shares have been climbing over the past month, and the move is starting to look less like a quick bounce and more like a reassessment of what this legacy retailer is worth.

See our latest analysis for Macy's.

At a share price of $22.85, Macy's has logged a strong 90 day share price return of 33.7 percent and a five year total shareholder return of 143.5 percent, which signals that investors are increasingly pricing in operational resilience despite mixed revenue trends.

If Macy's rebound has you rethinking where traditional retailers fit in your portfolio, it might be worth exploring fast growing stocks with high insider ownership as potential next wave candidates.

With earnings stabilizing but revenue still shrinking and the share price now sitting above the average analyst target, investors face a key question: Is Macy's still undervalued, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 6.5% Undervalued

With Macy's last closing at $22.85 against a narrative fair value of $24.43, the story here leans toward unrecognized upside grounded in cash flow strength.

Macy’s owns significant real estate that can be sold to provide liquidity, pay down debt, and finance new investments. The firm intends to raise about $600 million-$750 million from real estate sales over the next three years.

Read the complete narrative.

Curious how a mature retailer can still justify a richer valuation? This narrative leans on rising profitability, disciplined growth assumptions, and a future earnings multiple more often associated with faster growing brands. Want to see exactly which projections power that fair value number? Dive in to unpack the full case.

Result: Fair Value of $24.43 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this thesis could unravel if real estate sales disappoint or if ongoing store closures signal deeper structural demand problems than expected.

Find out about the key risks to this Macy's narrative.

Build Your Own Macy's Narrative

If this perspective does not fully align with your own view, you can dig into the numbers yourself and build a fresh narrative in minutes, Do it your way.

A great starting point for your Macy's research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.