Why Macy’s Stock Continues to Trade Dirt Cheap

Macy’s will be selling physical versions of VeeFriends’ NFT collectibles

Oct 11, 2022 at 10:46 AM
facebook twitter linkedin


Macy's, Inc. (NYSE: M) announced last week a partnership with VeeFriends, an NFT project, to sell physical versions of its collectible characters exclusively for Macy's and Toys“R”Us. The collectibles will launch on Oct. 17, but a pre-sale option is already available. The plush and vinyl characters will range in price from $9.99 to $29.99 and will feature a printed QR code that leads to 3D animated short films and character songs.

Macy's stock has managed to find a bit of distance from its Sept. 26 annual low of $15.10, though the 50-day moving average has kept some of these gains in check. Year-to-date, M has lost over 34%. The security is sporting a slight lead for October, though it just came off a six-month losing streak. Still, Macy’s offers an incredibly low valuation at a forward price-earnings ratio of 4.20 and a price-sales ratio of 0.20.

M oct 11

Short sellers have begun hitting the exits, though these bears are still in control. While short interest on M fell 6.4% in the last reporting period, is still makes up 8.1% of the stock's available float. 

Meanwhile, the equity provides an attractive dividend yield of 3.61% at a forward dividend of $0.63. Nonetheless, the company holds just $300 million in cash and $6 billion in total debt on its balance sheet, outweighing its market cap of $4.75 billion by more than $1 billion and making its dividend unreliable. In addition, Macy’s is estimated to report a 0.1% increase in revenue and a 22.8% decrease in earnings for fiscal 2023, as well as a 0.3% decrease in revenue and a 2.4% decrease in earnings for fiscal 2024, indicating a downward trend for the business. As a result, the stock will likely continue to trade dirt cheap until the company shows some stability.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners