While some retailers are feeling the heat from online shopping, data breaches and health care costs, Macy's (M) is playing it pretty cool. Even though second quarter earnings fell short of expectations, investors are encouraged by the retailer's focus on Millennial shoppers and early indications of solid back to school sales. The company is also remodeling many of its stores to update its look.
And despite having skyrocketed this year, the stock is still relatively cheap. It currently trades at 12.4 times next year's earnings, compared with the S&P 500's 2015 price-to-earnings ratio of 15.1
