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Macy's (M) Leans On Pricing Power As Shares Hover Near Fair Value

Simply Wall St · 2d ago

Macy's (M) shares closed at US$22.79 on 8 October 2026, leaving investors weighing the department store operator’s recent performance. The retailer’s current valuation now sits against mixed return figures across different timeframes.

Macy's share price has been broadly flat in recent months, with a small 1-day share price return of 1.47% alongside a modest 90-day share price return of 0.48%. Over the longer term, the story looks stronger through a 1-year total shareholder return of 33.18% and a 3-year total shareholder return of 134.78%, which signals that momentum has been building over time.

Scan beyond Macy's and compare its recent run with hand picked retailers and consumer stocks in the 29 high quality undervalued stocks screener that pair solid cash generation with sturdier balance sheets.

Macy's now trades close to recent levels after a strong multi year run. The key question is whether the current valuation still offers more potential upside or downside for new buyers.

Most Popular Narrative: 3% Undervalued

Macy's is trading at $22.79 against a widely followed fair value estimate of $23.36, which points to only a small discount yet still leaves the story anchored on how earnings quality and margins hold up as the business mix shifts.

The push toward higher AUR and a better best brand mix across Macy's, Bloomingdale's and Bluemercury, reflected in around 9% AUR growth in Q2 2026 and broader luxury growth, is intended to keep pricing power and merchandise margins intact. This can support gross margin and EPS even if unit volumes face pressure.

See why 20 investors see Macy's as 2% undervalued.

Result: Fair Value of $23.36 (UNDERVALUED)

Still, the Macy's story can be knocked off course if consumer demand keeps tilting toward lower priced e commerce rivals, or if margin gains from AI and tariffs fade.

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

Next Steps

Mixed mood on Macy's valuation and risks today. Act while the data is fresh and stress test your own thesis with the 3 key rewards and 3 important warning signs.

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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.