Macy's stock has rallied 50% in the last two years
Every day this week, we're going to highlight one of Schaeffer's top seven picks for 2023. Next up is retail stock Macy's Inc (NYSE:M). To access the entirety of the 2023 report, click here.
Macy’s (M) could be an attractive buy-and-hold for 2023, given its low price/earnings ratio of 4.9 and dividend yield of 2.79%. Even as recession fears have grown amid interest rate hikes and yield curve inversions, M has rallied 50% from a two-year low during this time frame. Back in October, the shares broke out of a trendline connecting lower highs since April, and thanks to a post-earnings bull gap in November, are now above their 200-day moving average.
However, expectations remain low among the brokerage bunch, with 13 of the 17 analysts covering the stock doling out “hold” or “sell” ratings. Short interest still accounts for a healthy 7% of the equity’s total available float too, even with short covering activity rampant since May.
