Best Dow Dividend Stocks To Watch For 2015

Best Dow Dividend Stocks To Watch For 2015: Macy’s Inc (M)

Macy's, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The company also operates Bloomingdale's Outlet stores that offer a range of apparel and accessories, including ready-to-wear, shoes, fashion accessories, jewelry, handbags, and intimate apparel products. As of January 28, 2012, it operated approximately 840 stores under the names of Macy's and Bloomingdale's; and 7 Bloomingdale's Outlet stores, as well as macys.com and bloomingdales.com. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1820 and is based in Cincinnati, Ohio.

Advisors' Opinion:

• [By MONEYMORNING.COM]

  What we're seeing is a massive shift in the retailing landscape as more conventional stores such as Macy's Inc. (NYSE: M), Target Corp. (NYSE: TGT), and Wal-Mart Stores Inc. (NYSE: WMT) have all missed on earnings in recent months.

• [By Ben Levisohn]

  We are maintaining our Underperform rating on the shares and raising our one-year price target slightly to $3.00 (from $2.50), which considers further anticipated improvement in FY16 EBITDA (year ending 1/29/17) to $895mn, from our upward revised EBITDA estimate of $728.5mn (up from $699.6mn) for FY15 and applying an EBITDA valuation multiple of 6.5x, above Dillard's (DDS) 6.1x and nearly comparable to Macy's (M) 6.6x. JC Penney's shares traded at an average EBITDA valuation multiple of 6.5x for the 10-year period ended 1/29/11 (prior to "Ron Johnson's brief tenure"), the basis for our midrange valuation multiple. O! ur valuation multiple appears high; we think JC Penney shares should trade at a discount to Macy's and Dillard's because: 1) JC Penney is significantly more leveraged (5x in FY16 vs. 1.5x for Macy's and 0.7x for Dillard's); 2) its anticipated EBITDA margin is much lower (7.2% vs. nearly 14% and 12% for Macy's and Dillard's); and 3) it ow ns significantly less real estate (26% of its stores are owned in fee compared to 55% and 83% for Macy's and Dillard's respectively), which may partially explain its lower margin. Furthermore, our FY16 EBITDA estimate assumes JC Penney's financial performance improves markedly, which may not transpire to the extent we estimate; thus, the significant optionality in the stock price, in our view.

• [By Jayson Derrick]

  Analysts at Stifel Nicolaus maintained a Buy rating on Macy's (NYSE: M) with a price target raised to $70 from a previous $64. Shares hit new 52-week highs of $62.09 before closing the day at $61.77.

source from Top Stocks For 2015:http://www.topstocksblog.com/best-dow-dividend-stocks-to-watch-for-2015.html