Zacks analyzed the investment potential of Macy's and Target, two retailers navigating a cautious consumer environment. Macy's focuses on a multi-brand portfolio, including its flagship stores, Bloomingdale's, and Bluemercury. This portfolio leans heavily into discretionary categories like luxury apparel and beauty.
Target boasts a larger market capitalization and broad merchandise mix. Macy's operates with a much smaller market cap.
Despite the challenging backdrop for discretionary spending, Macy's stock rallied significantly over the past year. Conversely, Target's shares declined during the same period.