The Chaikin Power Gauge RatingTM for Macy’s, Inc. $M is very bullish due to very strong earnings performance and very positive expert opinions. The rating in this stock report also reflects poor financial metrics. M’s earnings performance is very strong as a result of better than expected earnings in recent quarters and an upward trend in earnings this year.
Financial Metrics Rating – Bearish
M’s financial metrics are poor. The company is carrying too much long term debt and may be overvalued. The rank is based on a high long term debt to equity ratio, high price to book value ratio, high return on equity and high price to sales ratio.
Earnings Performance Rating – Very Bullish
M’s earnings performance has been very strong. The company has outperformed analysts’ earnings estimates and experienced superior earnings growth in the past 12 months. The rank is based on poor EPS growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Neutral
Price and volume activity for M is neutral. M has outperformed the S&P 500 over 26 weeks and is in a decelerating price trend compared to 4 months ago. The rank for M is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.
Expert Opinions – Very Bullish
Expert opinions about M are very positive. Analysts are raising their EPS estimates for M and analysts’s opinions on M have been more positive recently. The rank for M is based on analysts revising earnings estimates upward, insiders purchasing stock, optimistic analyst opinions and price strength of the stock versus the Nonfood Retail-Wholesale industry group.