Macy’s Stock Price Makes 52 Week High Ahead of Earnings: What to Expect

The stock price of Macy's Inc. (NYSE: M) hit a new 52 week high ahead of earnings, marking out $23.15 to set the stage for its upcoming earnings report, scheduled for release before this morning's market open. The stock ended Tuesday's session 0.48% lower at $22.71, yet has bounced some in extended hours to $23.12, within cents of that freshly minted high.

Wall St expects Macy's to deliver an EPS loss of $0.13, a considerable decline on the $0.04 profit from this time last year. Revenue is also expected to have slowed 3.87% to $4.56billion on the quarter. The trend leading in has been more positive, with 3 upwards revisions to EPS expectations on the month.

A look at key moving averages reinforces the bullish sentiment surrounding Macy's stock. The 50-day Simple Moving Average (SMA) stands at $18.94, while the 200-day SMA is at $14.20. The fact that the current stock price is significantly above both these averages suggests a strong upward trend. Technical analysts often view this as a signal that the stock price is likely to continue rising in the short to medium term.

While the prevailing sentiment is bullish, bears suggest that the long-term structural challenges facing department stores remain. While Macy's has made progress in its digital transformation, it still lags behind pure-play e-commerce giants in terms of agility and innovation. 

Therefore, while the current momentum is undeniable, investors should carefully consider the potential downsides and avoid getting caught up in the hype.

Macy's stock is currently riding a wave of positive momentum as it approaches its earnings release. Technical indicators suggest a bullish trend, and the market anticipates positive news from the company. However, whether Macy's can sustain this upward trajectory will depend on its ability to continue executing its turnaround strategy and adapt to the evolving retail landscape.