Macy’s Clinched Top Position in SPY



Top stocks

Stocks at the top of the SPDR S&P 500 ETF (SPY) on January 11 were Macy’s (M), Kohl’s (KSS), and HCA Holdings (HCA). These stocks gained 8.2%, 4.6%, and 5.5%, respectively, on the day. HCA Holdings (HCA) rose after the healthcare facilities provider raised its profit forecast.

The above graph compares the stock price movement of Macy’s (M) and Kohl’s (KSS) since October 2015. The beta values of both Macy’s and Kohl’s are less than one, which implies that the stocks are less sensitive to the broad market movement. The trailing-one-month return of the stocks had been 5.6% and 8.3%, respectively. The trading volume of Macy’s stock surged to 17 million from the previous day’s volume of 10.9 million. Macy’s traded at $38.82 just above its 20-day moving average. Its 100-day, 50-day, and 20-day moving average values are $47, $40, and $36, respectively. The stock has earned seven “buy” recommendations, 15 “hold” recommendations, and one “sell” recommendation. S&P has rated the stock as “BBB+” while Moody’s has maintained its “stable” outlook.

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Starboard Value’s proposed strategy for Macy’s

Starboard Value is an activist investor with Macy’s and it has proposed a new real estate strategy for the retailer. The plan proposes that Macy’s explore the enormous intrinsic value of the company’s mall locations and other iconic properties. Macy’s currently owns real estate assets worth $21 billion.

Bottom stocks

Stocks at the bottom of the SPY on January 11 were Freeport-McMoRan (FCX), Genworth Financial (GNW), and McKesson (MCK). These stocks yielded -20.3%, -10.4%, and -10.3%, respectively, on the day. For more information on US equities, visit our US Equity ETFs page.


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