• Earlier this week, analyst sentiment around Macy’s shifted more positive as the company extended its streak of outperforming quarterly earnings estimates and attracted bullish forecasts for its next report.

• This renewed analyst confidence, supported by Macy’s attractive valuation metrics and operational track record, has heightened expectations for the company’s ability to deliver continued earnings outperformance.

• With new optimism focused on Macy’s history of beating analyst forecasts, we’ll explore what this means for its investment narrative going forward.

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To be a Macy’s shareholder, you need conviction in its ability to maintain operational efficiency and adapt to shifting retail trends, especially as higher analyst confidence follows a run of earnings beats. While the recent positive sentiment may boost short-term expectations around upcoming results, it does not immediately offset the underlying risk of a continued shift toward e-commerce and away from store-based shopping, which remains the central challenge for Macy’s growth.

Among Macy’s latest corporate updates, its ongoing share buyback program stands out, with nearly four million shares repurchased in the last quarter alone. This initiative is closely watched as it can provide near-term support to earnings per share, making it particularly relevant as positive analyst sentiment builds ahead of the next earnings report.

Still, in contrast to rising optimism, investors should remain aware of the potential impact if consumer preferences accelerate their move online instead of returning to stores…

Read the full narrative on Macy’s (it’s free!)

Macy’s narrative projects $18.5 billion in revenue and $663.0 million in earnings by 2028. This requires a 6.5% yearly revenue decline and a $169 million earnings increase from $494.0 million today.

Uncover how Macy’s forecasts yield a $16.59 fair value, a 19% downside to its current price.

Simply Wall St Community members offer four fair value estimates for Macy’s that range from US$16.59 up to US$32, spanning nearly double the lowest valuation. This spread of opinions is a reminder that amid recent analyst upgrades, the risk of store-centric sales being disrupted by e-commerce could weigh further on Macy’s future results, so it is important to consider several different viewpoints.

Explore 4 other fair value estimates on Macy’s – why the stock might be worth as much as 55% more than the current price!