Should we own Macys Into Q3 Earnings

Macys is reporting earnings on November 12, 2014.  Should we own Macys into earnings?


  • Macys has a very good management team
  • Stock has low expectations
  • Stock is not expensive on a relative basis
  • Macys is trading below the average of itself to the S&P
  • The bar is low
  • Look for M to trade up to $62


  • Macys trades at 13x earnings
  • Holiday season looks like it will be difficult – WMT already missed
  • Margins are too small