What are the potential implications of this results for Macy's stock valuation and future guidance?

Macy’s Q2‑2025 release, while lacking dramatic headline numbers (neutral sentiment), will still force a re‑price of the stock as investors digest the details of same‑store sales, gross margin trends and the outlook for the holiday season. If the earnings per share beat the consensus and the company reaffirmed or nudged up its FY‑25 comparable‑sales guidance, the valuation gap to peers (e.g., Nordstrom, Dillard’s) should narrow, supporting a modest upside to the current 12‑month price target (≈ $13‑$15). Conversely, any miss on comps or a downgrade of full‑year sales guidance—particularly if tied to weaker discretionary spend or inventory challenges—will pressure the multiple down toward the lower end of the historical range (≈ 7‑8 × forward earnings), inviting sellers to target key technical supports around the 200‑day moving average (≈ $11.20) and the prior swing low.

From a technical standpoint, the stock is trading near a tight consolidation zone between $11.70 and $12.30. A breakout above the upper trend line on higher‑than‑expected Q2 results could trigger a short‑term rally toward the next resistance at $13.00, especially if volume confirms. Should the guidance be muted, expect the price to test the lower trend line and potentially break the $11.50 level, at which point a stop‑loss for long positions and a short entry might be justified. In summary, monitor the earnings release for concrete comps, margin guidance, and FY‑25 sales outlook—these will dictate whether Macy’s valuation moves toward a modest upside bias or slides back to a defensive, lower‑multiple positioning.