Macy's continues to be an impressively competent operator in the retail space. The company trades for attractive multiples, is shareholder-focused, and is currently benefiting from the collapse of other large department store operators. Over the long run, Macy's should continue to outperform and reward shareholders along the way.
American Eagle, on the other hand, appears only relatively strong today. The company was buoyed by an easy comparison to the year prior and still operates in a weak overall environment. With teen unemployment at 25%, American Eagle trading for high multiples, and growth modest at best, I say the price isn't right today.
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