Macy's Stock Soared 29% Last Week: Here's Why It Could Keep Flying Higher
Fear about the impact of high inflation and rising interest rates on consumer spending crushed Macy's (NYSE: M) shares in the first few weeks of May. However, Macy's stock recouped nearly all of its losses last week, surging 29%.
A better-than-expected earnings report drove most of this gain, as Macy's stock surged 19% on Thursday alone. But even after the stock's strong performance last week, Macy's still looks like a great buy for long-term investors. Let's take a look.
During fiscal 2021, Macy's sales recovered to around pre-pandemic levels, following a sharp drop a year earlier. Even more remarkably, adjusted earnings per share (EPS) jumped 82% compared to fiscal 2019, reaching $5.31. Strong demand combined with tight inventory enabled Macy's (and most of its competitors) to cut back on discounting, contributing to the strong margin performance.
Source Fool.com
