Is Macy's stock still undervalued?

Yes, according to a DCF model and market multiples, the stock remains undervalued relative to its intrinsic value.

What is Morgan Stanley's rating on Macy's?

Morgan Stanley initiated coverage with an Overweight rating.

What factors support Macy's valuation?

Strategies to boost sales across digital and physical channels, margin improvements, and attractive valuation.

Macy's Stock Still Undervalued Despite 88.5% Surge

Macy's (M) stock has delivered an 88.5% return over the past year, yet analysis suggests it remains undervalued relative to its intrinsic value from a DCF model and market multiples. Morgan Stanley's new Overweight rating adds to the positive sentiment.

July 9, 2026

2 min read

Source: Simply Wall St.

Key Numbers

one year return

88.5%

Macy's (M) stock has surged 88.5% over the past twelve months, but according to Simply Wall St., it still appears undervalued. A Discounted Cash Flow (DCF) model indicates the shares trade below their fair value, and market multiples support this view.

Rating Change

Morgan Stanley initiated coverage on Macy's with an Overweight rating, adding positive momentum. No specific price target was mentioned in the report.

Analyst Rationale

Analysts believe Macy's benefits from strategies to boost sales across digital and physical channels, as well as margin improvements. The current valuation does not fully reflect future growth potential.

Context

Despite strong performance, the stock remains below pre-pandemic levels. Other analysts have mixed views, with some citing structural challenges in retail that could limit gains.

What to Make of It

Macy's stock appears supported by attractive valuation and positive analyst coverage, but investors should monitor the company's ability to sustain growth amid intense competition.

Frequently Asked Questions

Macy's stock rose 88.5% over the past twelve months.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.