5 Low Profile Stocks that Surprised in 2021

3. Macy’s, Inc. (NYSE:M)

Number of Hedge Fund Holders: 41     

Gain in Share Price in 2021: 133%  

Macy’s, Inc. (NYSE:M) owns and runs department stores. The company has beaten market estimates on earnings for the past six quarters and the shares have more than doubled in value over the past twelve months. However, Macy’s, Inc. (NYSE:M) remains one of the top value plays in the market as margins and free cash flows improve. Most of this growth is driven by online sales which is attracting new customers. In the third quarter of 2021, the firm attracted 4.4 million new customers to the brand. 

Elite hedge funds have taken note of the performance and doubled down on their bullish bets on Macy’s, Inc. (NYSE:M). Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Macy’s, Inc. (NYSE:M) with 10.5 million shares worth more than $238 million. 

In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Macy’s, Inc. (NYSE:M) was one of them. Here is what the fund said:

“Meanwhile, Macy’s, an omnichannel retail organization that operates stores, websites, and mobile applications under the Macy’s, Bloomingdale’s, and Bluemercury brands, also had a strong quarter (+21.5%). Macy’s delivered strong second-quarter earnings, beating on earnings and revenue and raising guidance as the retailer continues to pay down debt and grow its digital business.”