Is Macy’s Stock Overvalued or Undervalued?

Pedestrians pass by Macy's Department store at Herald Square in New York on March 18, 2020. Victor J. Blue/Getty Images

Macy’s Inc. shares have left the S&P 500 in the dust in 2021, gaining 227.6 percent year-to-date.

Macy’s stock has had a wild ride in recent years, but investors may be wondering whether there’s any value in Macy’s shares after the big gains.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value.