Macy's

M

Market cap $5.63B

Macy's announced 14 more store closures as part of its "Bold New Chapter" turnaround strategy aimed at boosting profitability and streamlining operations.

It's ambitious, transformational strategy was implemented well. The retailer is becoming notably slimmer by divesting assets and closing underperforming stores.

M's trades at a steep valuation discount even as earnings estimates rise and management lifts guidance under its Bold New Chapter strategy.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

M is gaining omni-channel momentum as digital upgrades, Reimagine 125 stores and automated fulfillment lift sales and engagement.

Macy's plans to close 14 underperforming stores this year, after shuttering 66 in 2025 and 55 the year before. Following the next round of closures—most expected in the first quarter—the company will be 80% of the way toward its goal of 150 closings that was outlined in the “Bold New Chapter” turnaround plan presented by CEO Tony Spring in February 2024.

Fans of Macy's Inc. will be disappointed to learn that the iconic department store has announced its next round of store closures. Fourteen Macy's locations in 12 states will shutter as a result of this move.

Low P/S stocks like HG, M, GIII, GDOT and ROCK stand out as fundamentally supported growth plays, offering revenue-backed value without paying a premium.

Bloomingdale's drove M's luxury-led growth in Q3, posting 8.6% comps, a fifth straight gain and reinforcing its role as an earnings stabilizer.

Shares in department store chain Macy's are up nearly 33% year to date, but the stock continues to trade at a big discount to its retailer competitors. There are valid reasons for this valuation discrepancy; however, it could also work to your advantage.