Macy's Stock Looks Good Despite Inflation Fears
During 2021, Macy's (NYSE: M) cashed in on buoyant demand with a string of strong quarterly profits. The department store chain's impressive rebound from the COVID-19 pandemic -- along with some investors' enthusiasm about a potential spinoff of its e-commerce business -- helped Macy's stock surge as high as $37.95 last fall, up from less than $20 at the beginning of 2020.
More recently, though, investors have grown concerned about the impact of high inflation on retail spending and about the sustainability of the company's sales and earnings momentum. As a result, shares have retreated to around $25. At that price, Macy's stock looks like a bargain.
Back in late February, Macy's projected that adjusted earnings per share (EPS) would range between $4.13 and $4.52 in fiscal 2022. While that would represent a decline from the company's adjusted EPS of $5.31 last year, management recognizes that the company benefited from unusually strong demand for most of 2021. By contrast, adjusted EPS totaled just $2.91 in fiscal 2019.
Source Fool.com
