Macy's Stock Sports Intriguing Entry Point

Goldman Sachs added Macy's stock to its "Conviction Buy List"

Deputy Editor
Aug 2, 2023 at 12:52 PM
facebook X logo linkedin

Shares of Macy's Inc (NYSE:M), one of our top stock picks for 2023, are 1.4% lower this afternoon at $16.11. This dip comes despite Goldman Sachs adding M to its "Conviction Buy List," as the firm awaits the department store giant to make headway on its five pillar growth strategy following successful "trial and learn phases" this year.

Even better, Macy's stock is a flashing a historically bullish signal on the charts. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, the shares are within 2% of its 40-day moving average. The study shows five similar occurrences over the past three years. The stock was higher one month after 40% of these signals, averaging a 5.1% pop. From its current perch, a similar jump would put M just shy of $17 -- levels not seen since April. 

M Chart August 22023

On the charts, M rebounded nicely from its late-May dip to a more than two-year low of $12.80. The aforementioned $17 level has kept a lid on any further breakouts, however, meaning now could be an intriguing time to enter a new position.

The brokerage bunch is split on Macy's stock, meaning it could benefit from a shift in sentiment. Currently, five analysts rate the equity a "strong buy," while six say "hold" or worse. Meanwhile, the 12-month consensus price target of $17.91 is an 11.5% premium to current levels. Further, the 20.02 million shares sold short account for 7.4% of M's total available float.

Now might be an ideal time to speculate on the stock's next move with options. M sports a Schaeffer's Volatility index (SVI) of 44%, which stands higher than 11% of readings from the past 12 months. In other words, options traders are pricing in relatively low volatility expectations at the moment. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI