The USD 32.65 support is being tested which should allow Macy's to perform.
From a fundamental viewpoint, with a "entreprise value to sales" ratio for this financial year of 0.67x the company seems undervalued. In the recent months the earnings estimates for the next year is regularly revised upwards by analysts. According to the Thomson Reuters’ consensus, the average target price is fixed at $43 which represents a potential gain of 28% compared to the current price.
Graphically, Macy's stock is in an oversold situation and near to an important level USD 32.7. This scenario gives credit to possible technical rebound. Thus, the share price could find new energy and move towards next resistance placed to USD 36.4.
In order to take advantage of a technical rebound, investors can buy this stock at the current price to target USD 36.4. However we should not continue this strategy under USD 32.65.
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Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Belgique, Cerulean 6, Charter Club, Club Room, Epic Threads, Family PJ's, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, and others.