M Macys stock Story

M -  USA Stock  

USD 17.72  0.41  2.26%

It appears without question that Macys may not recover as fast as we have hopped for as its price went down 0.89% today. The entity's current daily volatility is 4.31 percent, with a beta of 0.02 and an alpha of 0.24 over DOW. As many of us are getting excited about new market fluctuations it is important to summarize Macys based on its technical indicators. We will evaluate why recent Macys price moves suggest a bounce in December.
Published over six months ago
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Are Macys (NYSE:M) stakeholders starting to panic?
Macys Inc has accumulated roughly 1.4 B in cash with 1.25 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.5. We provide investment recommendation to complement the last-minute expert consensus on Macys Inc. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Investing in Macys, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Macys along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Macys' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Macys in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Macys. Your research has to be compared to or analyzed against Macys' peers to derive any actionable benefits. When done correctly, Macys' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Macys Inc.

How important is Macys's Liquidity

Macys financial leverage refers to using borrowed capital as a funding source to finance Macys Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Macys financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Macys's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Macys, but it might be worth checking our own buy vs. sell analysis

Macys Correlation with Peers

Investors in M Macys can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Macys Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Macys and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities M Macys is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of M Macys for more details

Breaking it down

Macys appears to be slightly risky, given 1 month investment horizon. Macys Inc has Sharpe Ratio of 0.15, which conveys that the firm had 0.15% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Macys Inc technical indicators you can presently evaluate if the expected return of 0.66% is justified by implied risk. Please exercise Macys Inc Mean Deviation of 3.04, downside deviation of 3.54, and Risk Adjusted Performance of 0.0814 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Macys is likely to close below $8.73 next week

New Risk Adjusted Performance is up to 0.08. Price may pull down again. Macys Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Macys Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Macys future alpha.

Our Bottom Line On Macys Inc

While few other entities within the department stores industry are still a little expensive, even after the recent corrections, Macys may offer a potential longer-term growth to stakeholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Macys nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Macys.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Macys Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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