TJX Companies is up 25% since the beginning of the year. Ingrid Hendershot, Hendershot Investments Here, people walk past Macy's flagship store in Herald Square. I recommended Macy’s at the beginning of the year and even though it has increased in price since then I have a Hold recommendation on the stock. This dividend has increased several times over the years and may increase in the future. In addition to its growth, Macy’s pays a current dividend of over 4%, which is quite a bit higher than the 10-year Treasury, which pays less than 3%. Macy’s is profitable with a return on equity of 11%. It is undervalued with a price/earnings ratio of 9 and a price to sales ratio of 0.45. Macy’s owns some valuable real estate, which I don’t think is adequately reported on its balance sheet.
Penney, Macy’s is a fundamentally sound company.
It reacted by establishing its own online presence. Internet shopping is here to stay, but I feel there is a role for the brick and mortar stores that could adapt to this new environment. In the case of Macy’s, it had fallen from a high of $73.60 in 2015 to a price of about $25 when I recommended it. Internet shopping was sweeping the country and the stocks of brick and mortar companies such as Macy’s had fallen sharply. Last January, I chose Macy’s as my growth stock pick. Russ Kaplan, Frank, Fox & Hoagstrom's Heartland Advisor We’ll stay on a Buy rating, but it’s probably best to keep new positions on the small side and would ideally buy on weakness. The longer the stock can hold its recent big gains, the greater the chance it can continue higher over time.
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