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Macy's - AI Stock Analysis

Analysis generated November 25, 2024

Macy's Inc. (NYSE: M) is a well-known American department store chain specializing in retail. Headquartered in New York City, Macy's is one of the biggest players in the retail industry with numerous storefronts across the United States. It offers a wide range of products, including clothing, footwear, accessories, bedding, furniture, beauty products, and housewares. Macy's has been in operation for over a century and has become a staple in the American shopping experience. Despite facing challenges from e-commerce competitors and changing consumer behaviors, Macy's has made efforts to adapt by enhancing its online presence and improving in-store experiences.

Fundamental Analysis

Macy's reported revenue of $5.1 billion for the last quarter. This is an increase of 1.92% compared to the quarter before it, signifying short-term growth. However, this comes with a 3.48% decrease year over year, posing questions about its long-term growth prospects.

The net income for the last quarter was $150 million, which represents a substantial increase of 141.94% compared to the previous quarter, signaling a significant improvement in profitability. Even more impressively, it shows a year-over-year increase of 781.82%, indicating strong financial recovery and operational efficiency.

The EBITDA figure for the last quarter stood at $402 million, up by 10.74% from the previous quarter. Year-over-year, EBITDA increased by 81.90%, highlighting robust operating performance.

However, the current Price-to-Earnings (P/E) ratio is 25.08. This higher P/E ratio might indicate that the stock is overvalued, leading to potential bearish sentiment. A high P/E ratio can suggest that the stock price is high relative to earnings and may experience downward pressure.

Technical Analysis

Macy's stock is currently priced at $16.30, showing a monthly increase of 5.91%, indicating a positive short-term trend. Over the past year, the stock has appreciated by 13.83%, signifying a positive long-term trend. The bullish trend is apparent.

The 10-day Simple Moving Average (SMA10) is $15.62, which is higher than the previous SMA10 of $15.54. This suggests a potential upward trend in price movement.

However, the Relative Strength Index (RSI) is at 76.6, indicating that the stock is potentially overbought. An RSI above 70 typically points to overbought conditions and can signal a bearish outlook in the near term.

Alternative Data Analysis

Macy's has shown growth aspirations by advertising 2,922 open positions, a 12% increase over the past couple of months. This suggests a company in expansion mode. However, only 42% of employees have a positive outlook on the company, reflecting lackluster internal sentiment.

Macy's website traffic remains stable at 66 million visitors per month, with no significant changes recently. Meanwhile, the company's mobile app is gaining traction with 5,400 daily downloads, up 48% in recent months, indicating increased customer engagement.

Social media presence reflects mixed signals. While the Instagram page has 2.5 million followers with no significant change, the Twitter account has seen a 1% decrease in followers to 840,000, indicating a waning interest.

Finally, the AltIndex AI score, which combines fundamental, technical, and alternative data analyses, places Macy's at 47, suggesting a hold recommendation.

Conclusion

Based on the comprehensive analysis, Macy's showcases short-term growth and robust profitability improvements, but faces concerns such as potential overvaluation and internal employee sentiment issues. The technical indicators reveal a bullish trend but warn of overbought conditions. Meanwhile, alternative data suggests growth in customer engagement and hiring, albeit with some concerns in social media interest.

Given the mixed signals across different metrics, it is recommended to hold the stock. Continually monitor for shifts in fundamental performance, technical signals, and alternative data to better assess future opportunities.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.