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four causes to be optimistic about Macy’s

© Reuters. 4 reasons to be optimistic about Macy’s

Macy's (NYSE 🙂 is up 67% year-to-date. Still, stocks remain a buy from a growth and value perspective. Macy & # 39; s is benefiting from the backlog as people enjoy shopping in stores. The e-commerce division is also growing at a healthy pace. For the stock market, 2021 was a reversal of 2020 in many ways. Many of last year's biggest winners have turned into some of the biggest underperformers this year. Just take a look at the work of home stocks, cannabis stocks, or the electric vehicle (EV) sector. Certainly we can refer to many factors such as the reopening of the economy, the increase in long-term interest rates, the rotation from growth to value, and the general tendency of the market to return to mean values, especially when trends lengthen.

It is therefore not surprising that last year's stragglers are now outperforming this year. Some notable examples are the energy sector, as oil is now above pre-coronavirus levels, travel and tourism stocks such as airlines, hotels and cruise lines, and retail stocks.

Within this group, retail stocks are particularly interesting. Among the retail sector, Macy's (M) was one of the top performers in 2021 with a YTD gain of 67%. Despite that impressive gain, I believe the stock has more upside for four reasons: the economy reopening, the to leads to increased pedestrian traffic in shops and more formal wear spending; the company's booming e-commerce sales; strong consumer spending; and very attractive reviews.

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