7 Cheap Reliable Stocks to Invest In

4. Macy’s, Inc. (NYSE:M)

Forward P/E: 5.42

Analysts’ Upside Potential: 14.40%

Number of Hedge Fund Holders: 44

Macy’s (NYSE:M) is an omnichannel retail company with a brand portfolio containing Macy’s, Bloomingdale’s, and Bluemercury. It sells various merchandise under its brands, including apparel and accessories, cosmetics, home furnishing, and other consumer goods. Macy’s (NYSE:M) operates stores in 43 states in the US, along with the District of Columbia, Guam, and Puerto Rico. It also operates in Kuwait and Dubai under a license agreement with Al Tayer Insignia. In addition, the company offers several private label brands, including Alfani, Aqua, Epic Threads, Hudson Park, Hotel Collection, And Now This, and others.

Macy’s (NYSE:M) ranks among the retailers affected by the recent changing consumer patterns. However, the company identified such changes promptly, aligning its assortments and shifting its marketing calendar to balance its operations. It also delivered more personalized messages and promotions across its brands and categories, investing in proven areas of product strength and newness. The company slashed exposure to areas affected by softer demand. Such efforts shifted its course of business by the end of Q2 2024, highlighting its ability to quickly analyze trends and identify areas of opportunity.

The comprehensive brand portfolio under Macy’s (NYSE:M) lends it a considerable competitive advantage. The company experienced substantial growth in fragrances and green shoots in women’s ready-to-wear apparel, including Steve Madden, Donna Karan, Aves Les Filles, and others. Its customer base also responded positively to the ongoing private brand ready-to-wear reimagination, including elevated fashion and quality in our heritage labels.

To continue building on this positive momentum in this important category, Macy’s (NYSE:M) has been introducing new market and private brands that align more closely with customer demand, prioritizing appropriate investments to support growth. The stock currently trades at a forward P/E of 5.42 at a 67.62% discount to its sector. It ranks fourth on our list of the top cheap reliable stocks to invest in.