Rising consumerspending has allowed many retailers to clean up their balance sheets, creating some attractive values for fixed-income investors, says Morningstar's Joscelyn MacKay.
Given Macy's focus on its balance sheet and improving fundamentals, we think it will continue to generate cash and use it to predominantly favor financial health over growth.
Employment improvement, cooling commodity inflation, and lower interest on debt should allow consumerspending to sustain its moderate growth trajectory, says Morningstar's Bob Johnson.