Franchise News
CNBC: Beaten-Down Department Store Stocks Could be Ready to Rally
Department stores like Macy’s and J.C. Penney might soon experience a boost.
According to CNBC, department store stocks are already down 13 percent since announcing holiday sales results in January. However, Morgan Stanley analyst Kimberly Greenberger says such chains might soon be poised for a rally after reporting Q4 results next week - even if the rally is short lived.
"We've seen the 'easy compare' script before," Greenberger said, in regards to the third and fourth quarters of 2016. "[We] would use any strength into first quarter earnings per share prints in May to trim positions."
Macy’s investors will be keeping their eyes peeled for a potential sale, which could result in shares rising 50 percent after an acquisition. "A buyer would likely need to be excited or prepared to execute better than current management with respect to a turnaround," said Oliver Chen, an analyst as Cowen and Company.
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
