Department Stores on the Street: What the Analysts Recommend


Dec. 4 2020, Updated 10:51 a.m. ET

Consensus ratings

Most department stores, including JCPenney (JCP), Macy’s (M), Nordstrom (JWN), and Kohl’s (KSS), have consensus “hold” ratings for their respective stocks. Department store stocks have been struggling amid a competitive retail environment in which online retailers like Amazon.com (AMZN) are growing rapidly.

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Analyst recommendations

As of July 17, JCPenney’ stock was rated “hold” by 15 of 24 analysts (63%). The company was rated a “buy” by seven analysts and “sell” by two analysts. JCPenney has been focusing on its Sephora beauty in-stores, In-Style salons, the home category, and its toys merchandise business to drive top-line growth.

Macy’s stock is now rated a “hold” 19 of 24 analysts (79%). The stock was rated a “buy” by five analysts. None of the analysts currently has a “sell” rating.

Macy’s has been delivering disappointing results for the past several quarters. The company is focusing on enhancing its online sales and is looking for growth in the off-price space through its off-price Macy’s Backstage stores.

Nordstrom and Kohl’s

Upscale department store Nordstrom was rated a “hold” by 16 of 29 analysts (55%). The stock was rated “buy” by eight analysts and “sell” by five analysts. Nordstrom’s growth investments have been putting pressure on its bottom line.

Kohl’s was rated “hold” by 14 of 23 analysts (61%). Four analysts have a “buy” rating for Kohl’s stock, while five analysts have a “sell” rating.

12-month price targets

As of July 17, the 12-month price target for the stocks of department stores JCPenney, Macy’s, Nordstrom, and Kohl’s were $6.77, $25.83, $46.48, and $40.55, respectively. Compared to the closing stock price on July 17, these average price targets indicate upside potentials of about 33%, 12%, -2%, and 2%, respectively.

For more updates, visit Market Realist’s Department Store page.


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