10 Deep Value Stocks to Buy Now

5. Macy’s Inc. (NYSE:M)

Fwd. P/E: 6.4

Dividend Yield: 5.2%

Number of Hedge Fund Holders: 42

Macy’s Inc. (NYSE:M) is a leading U.S. department store operator with a nationwide presence through its Macy’s, Bloomingdale’s, and Bluemercury brands. The company offers a wide range of apparel, accessories, beauty products, and home goods.

On March 9, a Morgan Stanley analyst reduced the price target on Macy’s Inc. (NYSE:M) from $15 to $14, citing concerns over the company’s outlook despite better-than-expected Q4 earnings. The analyst noted that guidance fell short of expectations and cautioned that even these projections may not fully account for potential risks. Given Macy’s ongoing fundamental weaknesses, a challenging retail environment, and volatile quarterly performance, the analyst believes that a clearer path to a turnaround may not emerge until late 2025. He reiterated an Equal Weight rating on the shares.

While the street is currently quite cautious due to its various operational issues, Macy’s Inc. (NYSE:M) is hoping for a turnaround of its business with a focus on transforming its business. It has made substantial progress in the last 3-4 years through its Polaris strategy (announced in 2020), which includes digital expansion, store optimization, and increased private label offerings. It also benefits from its loyalty program and omnichannel capabilities, positioning itself for incremental growth in a competitive and challenging retail landscape.