Does Greg Abel Know Something Wall Street Doesn't? New Berkshire Hathaway CEO Doubles Down On a Legacy Department Store Stock With a 3.3% Dividend Yield

Ross Stores (ROST) shares rose 8% to $246.60 after reporting Q2 revenue of $6.26B (up 13%) and EPS of $2.66 (beating estimates). The company raised full-year EPS guidance to $8.61-$8.77. TJX (TJX) and Macy's (M) shares also gained 1% on related news. Ross's growth was driven by 10% comparable store sales and improved operating margins.

Berkshire Hathaway (BRK.A, BRK.B) has invested in Macy's (M), increasing its stake to 2.8% of the retailer's shares, worth $174 million. Macy's reported strong Q1 results, with revenue up 2% and net income up 66%, beating expectations. The company raised its full-year outlook. Analysts have a mixed view on Macy's stock, with an average price target of $22.77.

Berkshire Hathaway’s CEO Greg Abel disclosed a new stake in Macy’s in its Q1 2026 13F filed May 15, 2026: 3.04 million shares valued at about $55 million, alongside a new Delta Air Lines position. The article says Macy’s reported Q2 FY27 adjusted diluted EPS of $0.13 vs $0.03, revenue of $4.89 billion, and raised full-year guidance to net sales $21.5–$21.75 billion and adjusted EPS $2.00–$2.20.

JPMorgan Chase raised its Macy’s (NYSE:M) price target to $27 from $21 and kept a “neutral” rating, implying 15.85% upside. Other firms adjusted targets: Telsey to $23, Weiss reiterated “hold (c),” Zacks upgraded to “hold,” UBS reiterated “sell,” and Wall Street Zen cut to “hold.” Macy’s shares rose to $23.31.

US stock index futures were mixed early Wednesday as investors balanced AI optimism with uncertainty around US-Iran talks. Dow futures fell 0.3%, S&P 500 futures slipped about 0.1%, and Nasdaq 100 futures rose 0.2%. Oil climbed as Israel’s Lebanon campaign complicated a ceasefire, with WTI above $96 and Brent near $98. Broadcom, CrowdStrike, and Macy’s are due to report, alongside ADP jobs data.

US stock index futures were flat Wednesday as investors balanced AI optimism with uncertainty around US-Iran talks. Dow and S&P 500 futures held steady; Nasdaq 100 futures rose 0.1%. Palo Alto Networks shares gained after earnings, with the company citing strong AI cybersecurity demand. Earnings and ADP employment data are due, ahead of Friday’s May jobs report.