In today's market update, analyst Austin Smith looks at Macy's impressive quarter. The company continues to be a gem in the broader retail space and has done an excellent job maintaining relevance with consumers through a true adoption of an omnichannel strategy. In an environment when many retailers are guiding lower on macroeconomic weakness, Macy's continues to hum right along.

As good as Macy's is, though, we're actually more bullish on another retailer. It's The Motley Fool's Top Stock for 2012, and our chief investment officer has identified it as his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.