Year-to-Date Gains: 27%
Not all department stores are in dire straits, though. In fact, moving to Macy’s (M), we have our best-performing stock on the docket. Macy’s is sitting around multiyear highs thanks to a year-to-date climb of 26% — around 10 percentage points better than the broader bull market — and one-year explosion of 50%.
Of course, Macy’s can probably thank JCPenney at least a little for its recent success. The company improved earnings and sales in the first quarter, in part thanks to the fact that it snatched up business from rival chains.
Then again, the slightly-higher-end shopping destination has been chugging along for some time. It’s beaten analyst earnings expectations for the past four quarters, while revenue and non-adjusted earnings are each on at least a a 13-quarter growth streak.
Plus, out of all the big boys on this list, Macy’s also has the biggest earnings growth on tap. The 14% annualized EPS gain on tap for the next five years is hardly huge — and nothing compared to the 45% annual earnings improvement of the last five years — but its better than most established behemoth brands can say.
And hardly bad considering that, even after its stellar outperformance, Macy’s is still priced at just 11 times forward earnings.
As of this writing, Alyssa Oursler did not own a position in any of the aforementioned securities.