Why 5 Stocks, Including Macy’s and Coach, Are Going Viral Today

Macy’s Inc (NYSE:M) shares are up by almost 3% after analysts at Citigroup upgraded the stock to ‘Buy’ from ‘Neutral’. The analysts like Macy’s free cash flow and its annual dividend of $1.51 per share, good for a 4.35% yield. They also like Macy’s execution and strategy. Shares of the retailer trade for only 10-times forward earnings and have gained just 1.74% this year after today’s gains. 57 funds in our system were long Macy’s Inc (NYSE:M) as of the most recent 13F reporting period.

Going the opposite way is Coach Inc (NYSE:COH), whose shares are off by 2.4% after analysts at Morgan Stanley downgraded the stock to ‘Underweight’ from ‘Equal-weight’. The analysts think that a sustainable turnaround for Coach might be harder than expected. Due to those doubts, the analysts have a $32 price target on the stock, or about $3 under its current price. The analysts said:

“Coach has not grown North America gross profit dollars in a single quarter since the company began disclosing it three years ago. International gross profit and operating income dollars are growing +L-MSD, but investors are paying for a North America turnaround, not an international one.”

The number of funds in our system with holdings in Coach Inc (NYSE:COH) fell by one during the second quarter to 36.

Air Products & Chemicals, Inc. (NYSE:APD) is in the headlines today after filings revealed that Bill Ackman‘s Pershing Square has cut its position by 3.6 million shares, bringing the hedge fund’s stake down to 16.9 million shares, which account for 7.8% of the company’s float. Air Products & Chemicals has done well in 2016, rising by almost 15% year-to-date. Given the solid performance, it is understandable why Ackman would want to take some money off the table. 56 funds in our database were long Air Products & Chemicals, Inc. (NYSE:APD) at the end of the second quarter.

Disclosure: None