Key statistics

Is M a good stock to buy in 2026?

With a P/E ratio of 8.28x significantly below the sector average of 20x, and a discounted cash flow (DCF) suggesting a fair value of $31.18 which represents a 58.6% upside from the current price, M stock appears to be undervalued. While 32.5% of analysts rate Macy’s as a “Buy,” the overall consensus is “Hold” with a target slightly below the current price. Investors should weigh this potential undervaluation against declining revenue and the mixed analyst sentiment for M stock.

2026 M price scenarios

Based on analyst consensus of $19.2 from 40 analysts. Not a prediction by Alert Invest.

About Macy’s, Inc. (M)

Macy’s, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of January 29, 2022, it operated 725 department stores in the District of Columbia, Puerto Rico, and Guam under the Macy’s, Macy’s Backstage, Market by Macy’s, Bloomingdale’s, Bloomingdale’s The Outlet, Bloomies, and bluemercury brands.

Antony Spring leads Macy’s, Inc. as CEO, steering the iconic department store chain through the evolving retail landscape. The company operates a vast network of stores and digital platforms, aiming to provide a comprehensive shopping experience. Macy’s distinctive strengths lie in its long-standing brand recognition, diverse portfolio of retail formats including Bloomingdale’s and bluemercury, and ongoing efforts to integrate physical and digital commerce.

M competitive moat and business analysis

Macy’s, Inc. operates in a highly competitive retail sector, making a robust competitive moat essential for long-term sustainability. While its net margin of 2.84% is modest, reflecting the tight margins typical of department stores, the company’s sheer scale and brand heritage offer some advantages. Unfortunately, specific Return on Equity (ROE) and Return on Invested Capital (ROIC) data are currently unavailable, which would provide deeper insights into the efficiency of its capital deployment. Despite this, the extensive physical footprint and established supply chains historically provided a barrier to entry, though this has been challenged by e-commerce.

For the fiscal year 2025, ending January 31, 2026, Macy’s, Inc. reported its revenue under the symbol ‘M’ in USD. The segment breakdown was captured for this period, indicating the company’s primary operational reporting. Currently, no specific geographic breakdown of revenue is provided, suggesting its core operations are primarily consolidated across its domestic market or are not segmented for public reporting at this level of detail.

The trend in Macy’s competitive position faces headwinds, as evidenced by a year-over-year revenue growth of -1.7%. This decline points to ongoing challenges in attracting consumers and maintaining sales volume in a shifting retail environment. Without a recent earnings transcript available, it’s difficult to ascertain specific management commentary on mitigating these challenges or outlining strategies to reverse the trend and strengthen its market position.

To better understand Macy’s market standing, it is useful to compare it against its peers. Evaluating M vs BBWI (Bath & Body Works), M vs GNTX (Gentex Corporation), and M vs GPI (Group 1 Automotive) provides perspective across the broader Consumer Cyclical sector, though these are not direct department store competitors. A direct comparison with other department store chains would offer more specific insights into its relative strengths in areas like merchandise, pricing, and operational efficiency within its immediate industry.

Macy’s, Inc. analyst rating

Based on 40 analysts. 32.5% rate M Buy or Strong Buy.

A 32.5% buy rating among 40 analysts, while not a majority, indicates a significant portion of the analytical community sees potential in M stock despite the overall “Hold” consensus. For the Consumer Cyclical sector, which can be sensitive to economic shifts, this level of buy conviction can be seen as moderately strong, especially when paired with a potential undervaluation signal.

Is M undervalued or overvalued?

When assessing the M valuation, several metrics suggest that Macy’s, Inc. is currently undervalued. Its P/E ratio stands at 8.28x, which is considerably lower than the Consumer Cyclical sector average of 20x, indicating that the market is valuing its earnings at a discount compared to its peers. Furthermore, a Discounted Cash Flow (DCF) model calculates a fair value of $31.18 for M stock, representing a substantial 58.6% upside from its current trading price.

Beyond earnings, the M valuation is further supported by its price-to-book (P/B) ratio of 1.09x and a price-to-sales (P/S) ratio of 0.23x, both of which generally point towards a cheap valuation relative to its assets and revenue, respectively. The robust Free Cash Flow (FCF) yield of 20.39% also highlights the company’s ability to generate cash, contributing to the argument that Macy’s stock could be trading below its intrinsic value.

M financial health & key metrics

For value investors considering M stock, the current metrics paint a complex picture. The low P/E and P/B ratios, coupled with a significant DCF upside and a strong FCF yield, strongly suggest an undervaluation. However, the declining revenue growth and low net margin indicate operational challenges that need careful consideration. The moderate debt-to-equity ratio also warrants attention, suggesting a balance between potential value and underlying business risks.

Macy’s, Inc. earnings history & next report

Macy’s, Inc. reported EPS of $1.67, beating estimates by 9.15%. Next earnings: 2026-05-27 with EPS estimate of $0.02.

As Macy’s, Inc. approaches its next earnings report on May 27, 2026, with an EPS estimate of $0.02, investors will be closely watching for signs of stabilization or improvement in its core retail operations. Key areas of focus will include commentary on inventory levels, performance of strategic initiatives like digital sales growth and smaller format stores, and any updates regarding the company’s outlook on consumer spending trends. Given the recent revenue decline, positive guidance or a strong beat could significantly influence the M stock trajectory.

M daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

M insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent M analyst rating changes

Macy’s, Inc. stock news today

How does M compare to its peers?

Understanding the competitive landscape is crucial for any investment decision, and examining how Macy’s, Inc. (M) stacks up against other players in the Consumer Cyclical sector provides valuable context. While direct department store comparisons would be ideal, looking at broader industry peers helps illuminate relative strengths and weaknesses in different market segments.

FAQ — Macy’s, Inc. (M) stock