Why Macy's Inc. Stock Climbed Today

What happened

Shares of Macy's Inc. (NYSE: M) moved higher today. Not only were they riding a broader wave in the retail sector, but also OTR Global upgraded the stock to neutral and Guggenheim reaffirmed its buy rating on the department-store chain on Friday. As of 3:18 p.m. EDT, the stock was up 5.2%.

So what

Macy's wasn't the only retail stock gaining today; the SPDR S&P Retail ETF (NYSEMKT: XRT) was up 2.7%. Though there was no specific news driving up retail stocks, investors seem to be bullish about this holiday season, and a strong November retail sales report, out last week, also may have stoked investor hopes. OTR Global said it upgraded the stock after it found sell-through rates meeting or exceeding expectations due to strong e-commerce trends. Meanwhile, Guggenheim reaffirmed its buy rating and $27 price target, 4% above the current price.

Now what

Macy's stock has been on a tear since the company reported better-than-expected earnings results in its November report; shares have now rallied 33% in a little more than a month. Investors seem to be willing to overlook 12 straight quarters of declining comparable sales amid reports of a strong Black Friday weekend, and a general sense that retailers are bouncing back from recent struggles.

Macy's real estate portfolio, which at one point was valued at as much as $21 billion according to Starboard Value, has also been a source of income as the company sells and consolidates properties; it offers investors some security.

I'd still be concerned about the company's falling sales and profits, but we'll learn more when Macy's reports holiday sales in a couple of weeks.

10 stocks we like better than Macy'sWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Macy's wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of December 4, 2017

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.