8 Retail Stocks Set to Soar - 2 of 8

#2 - Macy's (NYSE:M)

Macy’s (NYSE: M) - If you’re looking for a retail stock with a solid valuation, then you might be attracted to Macy’s. The brick-and-mortar retailer’s shares are up over 50% for the year, helping it rise to be a top 10 performer (year-to-date) in the S&P 500. The question that you might be asking is why. Part of the answer is if you can't beat them, join them. And Macy's has been aggressively making strides to stake a claim in the digital space. This embracing of digital sales has had another welcome benefit. Consumers are buying online and when they go to pick-up their order at stores, they are making additional purchases. In their last earnings report, Macy’s cited a 25% increase in sales to customers in this scenario. What’s more, the Macy’s app seems to be providing customers with a good experience, including the ability to check prices, track purchases, conduct an online chat, and offering mobile wallet payments.

But digital growth is not the only reason analysts think Macy's may be able to stand up to Amazon. The company remains invested in its specialty beauty stores, Bluemercury as well as Macy's Backstage – a discount outlet brand. And, like many retailers, Macy's has had to close stores that are underperforming to help reduce costs and increase profits. While some analysts may wonder if Macy's is closing stores rapidly enough, there's a lot to like about the direction the company is headed. And with a P/E ratio of around 10, it's a competitive stock in this space.

About Macy's

Macy's, Inc, an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and bluemercury brands. Read More 

Current Price

$19.01

Consensus Rating

Hold

Ratings Breakdown

2 Buy Ratings, 5 Hold Ratings, 2 Sell Ratings.

Consensus Price Target

$17.45 (8.2% Downside)