12 Cheap Retail Stocks to Buy According to Hedge Funds

8. Macy’s, Inc. (NYSE:M)

Forward P/E: 5.98

Number of Hedge Fund Holders: 38

Macy’s Inc. (NYSE:M) is an omnichannel retail store that manages three brands: Macy’s, Bloomingdale’s, and Bluemercury. These brands sell a variety of merchandise, including accessories, apparel, consumer goods, home furnishings, and more. The company operates stores in 43 US states, The District of Columbia, Guam, and Puerto Rico.

The company is undertaking initiatives to make progress in its Bold New Chapter strategy, which is helping it stay on track to attain its long-term goals of sustainable growth. The company announced plans to close 150 stores underproductive for this strategy by 2026. It is expected to keep only 350 stores in its portfolio and continue implementing its Bold New Chapter strategy for them, which entails a shift to chasing wealthier shoppers with the company’s high-end brands, including Bluemercury and Bloomingdale’s.

Macy’s Inc. (NYSE:M) reported net sales of $4.7 billion in fiscal Q3 2024, which is in line with the outlook it provided. The company has a forward P/E ratio of 5.98 and is trading at a 64.63% discount to its sector. Its median price target of $14.67 implies an upside of 9.07% from current levels. On February 3, Benchmark Co. analyst Mark Zgutowicz reiterated a Buy rating on the stock and set a price target of $600.00.