Macy’s (M) Stock Jumps 4% on Analyst Upgrade — Is the Rally Just Starting?

TLDR

• Macy’s stock hit a 52-week high of $25.67, up around 1.84% on the day
• TD Cowen raised its price target to $25 from $20, maintaining a Hold rating
• Q1 2026 EPS came in at $0.13, well ahead of the $0.03 estimate
• Q1 revenue hit $4.7 billion, beating the $4.61 billion forecast
• UBS holds a Sell rating with a $9.00 price target, citing market share concerns

Macy’s stock has been on a tear lately, and Wednesday it made it official — hitting a new 52-week high of $25.67 per share, up around 1.84% on the day.

Macy’s, Inc., M

The move comes hot on the heels of a TD Cowen price target raise, lifting its target from $20 to $25. The firm kept its Hold rating but pointed to improved execution in merchandising and brand mix as reasons for the upgrade. The stock initially jumped 3.9% on the news before settling back to around $24.87.

The renewed analyst attention follows a strong Q1 2026 earnings beat. Macy’s posted EPS of $0.13 — a wide miss in the other direction from the $0.03 estimate that Wall Street was expecting. Revenue came in at $4.7 billion, ahead of the $4.61 billion consensus. First-quarter comparable sales grew 3%, more than double the 1.4% estimate.

Bloomingdale’s deserves a mention here. The luxury banner posted 10.2% comparable sales growth in Q1, punching well above the main Macy’s nameplate and helping carry the overall number.

Mixed Signals From Analysts

Not everyone is buying the momentum. UBS is keeping its Sell rating with a $9.00 price target — a steep discount to where the stock is currently trading. The concern centers on long-term market share erosion, which is a recurring worry in the department store space.

InvestingPro data adds another wrinkle: despite the strong price action, the platform flags the stock as overvalued relative to its fair value estimate. The P/E ratio sits at 10.43, which isn’t eye-popping, but the 138.66% one-year total return has pushed the stock into territory that some models see as stretched.

That one-year return is worth pausing on. Investors who were holding Macy’s this time last year have seen their position more than double.

What Helped the Broader Market

The stock also got a tailwind from macro events. Earlier in June, the broader market surged after President Trump walked back a threat to strike Iran, cancelling planned military action after diplomatic talks progressed. The S&P 500 jumped 1.4% and the Nasdaq gained 1.8% that session, with Macy’s gaining 6.8% on that day alone.

Macy’s has had a volatile year — the stock has made moves greater than 5% on 20 separate occasions over the last 12 months.

Year-to-date, the stock is up 9.3%. For context, investors who put $1,000 into Macy’s five years ago would be sitting on about $1,279 today.

The stock is currently trading near its 52-week high of $25.66, with the company carrying a financial health score of 3.12 out of 5 from InvestingPro.

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