Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 11, 2019

Article Excerpt

MACY’S INC., $25.42, New York symbol M, operates 690 Macy’s and Bloomingdale’s department stores. It also has 180 speciality stores and sells goods online. The stock fell 12% this week after the company cut its sales and earnings forecasts for the current fiscal year, ending January 31, 2019. Macy’s now expects its same-store sales for the full year will rise about 2.0%. That’s below its earlier forecast for 2.3% to 2.5% growth. As well, the company now expects to earn between $3.95 and $4.00 a share (excluding unusual items), down from its earlier range of $4.10 to $4.30 a share. The reduced expectations reflect weaker demand for women’s sportswear, fashion jewelry and cosmetics. The stock trades at 6.4 times the midpoint of the new earnings range. That low p/e reflects uncertainty over Macy’s prospects as more consumers shop online. OUR RECOMMENDATION: Macy’s is still a hold. Macy’s recent coverage Hotline for November 16, 2018 September 2018 issue GENERAL ELECTRIC CO., $8.94, New York symbol GE, gained 7% this…

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