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Macy's shares drop 15% YTD despite strong sales and dividend hike, seen as a value buy

Analyst Insights
12 Apr 2026
Seeking Alpha
View Source
Bullish
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Macy's stock has fallen about 15% year-to-date even though the company shows positive comparable sales growth and is executing a 'Bold New Chapter' strategy focused on efficiency. This strategy includes closing underperforming stores, upgrading key locations, and targeting higher-income customers, which has improved brand positioning and sales. Macy's trades at a low valuation with a 3.7x EV/FY26 EBITDA and 9.5x FY26 P/E, alongside a recently increased 4.0% dividend yield with a sustainable payout ratio. The stock is considered a buy due to its attractive valuation, operational turnaround, and healthy dividend, offering potential for future re-rating as market conditions stabilize.

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