Iconic, battle-honed retailer Macy's Inc. (M), first discussed here on June 17, 2009, at a price of $11.23, has pulled back slightly to about $23 after a better-than-decent run-up in 2010. But just view that dip as an opportunity to scoop up shares of a preferred company.

Further, the modifier "battle-honed" has been used because "Big M" has survived the worst U.S. economic contraction since the Great Depression, a downturn that hammered the retail sector.

Macy's should post a FY2012 same-store sales increase of 3% to 4%, followed by a similar rise in FY2013.

Barnes & Noble, the Gap, RadioShack, and Sears -- that may sound like the lineup at the local mall, but in fact they are just a few of the retailers scheduled to step into the earnings spotlight this week. Following last week's disappointing January retail sales numbers from the Commerce Department but strong fourth-quarter reports from Abercrombie & Fitch (ANF) and Nordstrom (JWN), the coming week will offer plenty more data on the sector for investors to mull over.

Walmart

Bentonville-based Walmart (WMT) offered free holiday shipping, closed its Moscow office and named a chief merchandising officer during its fourth quarter. Analysts surveyed by Thomson Reuters forecast earnings for that period to come to $1.31 per share, up from $1.17 in the same quarter of last year. The world's largest retailer also is expected to post revenues of $117.7 billion for the three months that ended in January. That's 3.5% more than a year earlier.

On Thursday, Dillard's (DDS) announced that it plans to form a wholly-owned real estate investment trust. The company will transfer some of its properties to the REIT and then lease back the properties from the entity. The company said that the move may enhance its ability to access debt or preferred stock and improve its liquidity.

The market is currently pricing REITs at rich valuations, and the transaction will allow Dillard's to better monetize its significant real-estate assets. By transferring these holdings into a publicly traded REIT, Dillard's should be able to unlock additional shareholder value. According to Craig Johnson, an analyst at Customer Growth Partners, "the sum of the parts can be greater than the sum of the whole."

Analyst Upgrades

• Hewlett-Packard (HPQ) to buy from neutral at UBS.
• Fluor (FLR) to overweight from neutral at JPMorgan.
• Macy's (M) to outperform from neutral at Credit Suisse.
• Canadian Solar (CSIQ), JA Solar (JASO) and HeartWare (HTWR) to buy from hold at Auriga.
• Ashford Hospitality (AHT) to outperform from market perform at FBR Capital.
• RenaissanceRe (RNR) to buy from neutral at Janney Capital.
• DCT Industrial (DCT) to market perform from underperform at Wells Fargo.
• Coeur d'Alene Mines (CDE) and Silver Standard (SSRI) to buy from hold at Deutsche Bank.
• Weatherford (WFT), Hercules (HERO), GulfMark Offshore (GLF), Tidewater (TDW) and GlaxoSmithKline (GSK) to buy from hold, and Diamond Offshore (DO) to hold from underperform, at Jefferies.
• Ritchie Bros. (RBA) to buy from neutral at BofA/Merrill.
• AstraZeneca (AZN) to buy from hold at Citigroup.

Battle-honed retail chain Macy's (M), first discussed here on June 17, 2009, at a price of $11.23, has pulled-back slightly, after a better-than-decent run-up in 2010, but just view that dip as an opportunity to consider the shares.

Moreover, the modifier "battle-honed" has been used because iconic retailer Macy's has survived the worst U.S. economic contraction since the Great Depression -- a downturn that hammered the retail sector.

Even though Americans are still concerned about the economy, anemic employment growth and saving enough for the future, it looks like consumers are starting to make their way back to the malls and department stores -- which is a good sign for Phillips-Van Heusen (PVH).

Macy's (M) reported same store sales rose 4.8% during September, and JCPenney (JCP) reported same store sales rose 5.1% during the same period. This is music to Phillips-Van Heusen's ears because the company owns a large amount of floor space in both of these department stores.

On a down day for the markets, it's nice to see some strength. Macy's (M) is getting a healthy bid in response to the retailer's Q2 numbers. At least, that's what's happening at the time of this writing (hopefully, the stock can retain its green status through the closing bell). It's up over 4% to $20.23. Volume is rocking.

I'm wary of this equity, though. It fooled me the last time. After the Q1 report was released near the middle of May, I thought it might be an interesting trade idea. It has slid ever since, as the following chart indicates.

Analyst Upgrades

• Goldman believes EOG Resources (EOG) can regain its premium multiple given its ability to find new horizontal liquids resource plays. The firm upgraded shares to conviction buy from buy and has a $129 price target on the stock.
• Deutsche Bank upgraded Macerich (MAC) to buy from hold following the company's Q2 results and raised its target for shares to $47 from $45.
• Needham upgraded QuinStreet (QNST) to strong buy from buy, citing the strong Q4 report and valuation, and has a $20 target on the stock.
• Macy's (M) was upgraded to buy from neutral at BofA/Merrill.
• Whole Foods (WFMI) was upgraded to buy from neutral at UBS.
• Texas Instruments (TXN) was upgraded to outperform from market perform at Raymond James.

Macy's Inc. (M) is trading higher today. With a little less than two hours to go before the close of the regular session, the retailer, whose competitors include The Gap Inc. (GPS) and Kohl's Corporation (KSS), was higher by 63 cents, or 2.6%, to $24.53. Volume was healthy.

The stock isn't far from the 52-week high of $25.25. The 52-week low is $10.27, so the equity has come a long way since it was stuck in the doldrums. The one-year chart shows a reasonably attractive uptrend. Earlier today, the company reported its Q1 numbers. How did they look?