Home / Street Sector / Safe Haven Profitability Portfolio Stocks: Macy’s, Inc. (NYSE:M), Costco Wholesale Corporation (NASDAQ:COST)

Safe Haven Profitability Portfolio Stocks: Macy’s, Inc. (NYSE:M), Costco Wholesale Corporation (NASDAQ:COST)

Macy’s, Inc. (NYSE:M) presented as an active mover, shares showed upbeat performance 1.35% to traded at $38.38 in most recent trading session. The firm has floated short ratio of 3.62%, hold to candle to sentiment indicator of Short Ratio, its stand at 1.66. Macy’s Inc. (M) reported third-quarter earnings that missed anticipates. Net income was $15 million, or 5 cents per share, down from $117 million, or 36 cents per share, for the same period previous year.

Same-store sales for stores on an owned-plus-license basis were down 2.7%, and same-store sales for stores on an owned basis were down 3.3%. The FactSet estimate was a decline of 2.8%. The retailer expects full-year 2016 same-store sales on an owned-plus-license basis to decline in the range of 2.5% to 3%, and it continues to expect EPS in the range of $3.15 to $3.40.

Efficiency or profitability analysis gives an appropriate idea for investment decision; M attains returns on investment ratio of 12.00%, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at positive 3.00%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 6.00% and 39.10% respectively.

Turns back to returns ratios, returns on equity stands at 19.20%. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was 4.04% and monthly performance was 3.06%. The stock price of M is moving up from its 20 days moving average with 5.56% and isolated positively from 50 days moving average with 5.77%.

Following analysis criteria, Costco Wholesale Corporation (NASDAQ:COST) attains noticeable attention, it inching up 0.48% to traded at $146.79. COST attains analyst recommendation of 2.10 on scale of 1-5 with week’s performance of 0.36%.

The firm has noticeable returns on equity ratio of 20.70%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at 13.80%. To see the other side of depiction, profit margin of COST stands at positive 2.00%; that indicates a firm actually every dollar of sales keeps in earnings. The 7.00% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of COST, it holds price to book ratio of 5.32 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 22.38, and price to earnings ratio calculated as 27.54. The price to earnings growth ration calculated as 2.70. COST is presenting price to cash flow of 13.74 and free cash flow concluded as 890.05.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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