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Macy's shares rise 5% as Berkshire Hathaway buys 1% stake and earnings outlook improves

Market News
16 May 2026
Seeking Alpha
View Source
Bullish
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Macy's stock jumped 5% after Berkshire Hathaway acquired a new 1% stake in the company, signaling confidence in the retailer. Macy's reported solid Q4 results, with comparable store sales up 1.8% and strong performance at Bloomingdale's despite a slight revenue decline. The company maintains cautious guidance for fiscal 2026 due to macroeconomic uncertainties, but free cash flow yield is strong at over 15%, and the stock trades at an attractive 12 times price-to-earnings ratio. Technical indicators show the shares are about 20% undervalued, with key support near $18 ahead of the upcoming Q1 earnings report.

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