Macy’s Inc. (NYSE: M) traded at $37.74 and has a market value of around $16 billion. The consensus target price from Thomson Reuters is $44.37 and the 52-week range is $22.66-$42.17. Macy’s has a dividend yield of 2.2%. The implied upside to the consensus target is 17.6%, and we note again that the target is above the 52-week high.
Kohl’s Corp. (NYSE: KSS) traded at $49.74 and has a market value of around $12 billion. The consensus target price from Thomson Reuters is $56.26 and the 52-week range is $42.14-$57.39. Kohl’s has a dividend yield of 2.6%. The implied upside to the consensus target is 13%, and we note again that the target is below the 52-week high.
J.C. Penney Co. Inc. (NYSE: JCP) traded at $27.28 and has a market value of around $6 billion. The consensus target price from Thomson Reuters is $33.29 and the 52-week range is $23.44-$43.18. Penney’s has a dividend yield of 3%. The implied upside to the consensus target is 22%, and we note again that the target is (well) below the 52-week high.
Gap Inc. (NYSE: GPS) traded at $27.04 and has a market value of around $13 billion. The consensus target price from Thomson Reuters is $29.71 and the 52-week range is $15.08-$29.23. Gap has a dividend yield of 1.9%. The implied upside to the consensus target is almost 10%, and we note again that the target is (slightly) above the 52-week high.
Limited Brands Inc. (NYSE: LTD) traded at $46.00 and has a market value of around $13 billion. The consensus target price from Thomson Reuters is $49.50 and the 52-week range is $31.43-$51.84. Limited has a dividend yield of 2.2%. The target price is below the 52-week high, which the company posted earlier this month. Shares are fully valued here if the analysts are right.
American Eagle Outfitters Inc. (NYSE: AEO) traded at $19.80 and has a market value of around $4 billion. The consensus target price from Thomson Reuters is $23.19 and the 52-week range is $10.00-$21.13. American Eagle Outfitters has a dividend yield of 2.2%. The implied upside to the consensus target is 17%, and we note again that the target is above the 52-week high.
Abercrombie & Fitch Co. (NYSE: ANF) traded at $35.43 and has a market value of around $3 billion. The consensus target price from Thomson Reuters is $51.65 and the 52-week range is $34.45-$78.25. A&F has a dividend yield of 2%. The implied upside to the consensus target is 46%, and we note that the target is well below the 52-week high.
The TJX Companies Inc. (NYSE: TJX) traded at $41.24 and has a market value of around $31 billion. The consensus target price from Thomson Reuters is $45.89 and the 52-week range is $24.60-$42.81. TJX has a dividend yield of 1.1%. The implied upside to the consensus target is 11%, and we note again that the target is above the 52-week high.
Dollar General Corp. (NYSE: DG) traded at $47.43 and has a market value of around $16 billion. The consensus target price from Thomson Reuters is $52.53 and the 52-week range is $29.84-$48.76. Dollar General does not pay a dividend. The implied upside to the consensus target is 11%, and we note again that the target is above the 52-week high.
The store with the highest implied gain is Abercrombie and Fitch, while the lowest implied gain is posted by Walmart. But A&F trades well below the stock’s 52-week high and is down nearly -53% over the past year, while Walmart shares have gained 18% in the same period. Walmart appears to be fully valued, and A&F appears to have problems.
Shares in American Eagle and Gap are both up about 43% on the year, and American Eagle’s potential upside is 17% while Gap’s is 22%. TJX shares are up nearly 53% in the past year and Dollar General’s are up 44% and both show a potential upside of 11%.
Putting together share price growth over the past year and remaining potential upside, both American Eagle and Gap appear to offer the best value investment option. American Eagle, with a low price-to-book ratio of 2.74 and a higher dividend yield gets the final nod.
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Paul Ausick
