We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Nordstrom (JWN) Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Nordstrom (JWN - Free Report) . JWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.08, while its industry has an average P/E of 14.53. Over the last 12 months, JWN's Forward P/E has been as high as 13.04 and as low as 5.73, with a median of 7.85.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JWN has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.39.
Finally, our model also underscores that JWN has a P/CF ratio of 3.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JWN's P/CF compares to its industry's average P/CF of 8.26. Over the past year, JWN's P/CF has been as high as 3.83 and as low as 2.12, with a median of 2.73.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 1 (Strong Buy) stock with a Value score of A.
Urban Outfitters is trading at a forward earnings multiple of 12.24 at the moment, with a PEG ratio of 0.68. This compares to its industry's average P/E of 14.53 and average PEG ratio of 0.74.
Over the past year, URBN's P/E has been as high as 16.59, as low as 7.48, with a median of 11.20; its PEG ratio has been as high as 0.92, as low as 0.42, with a median of 1.26 during the same time period.
Furthermore, Urban Outfitters holds a P/B ratio of 1.74 and its industry's price-to-book ratio is 2.84. URBN's P/B has been as high as 1.78, as low as 1.07, with a median of 1.37 over the past 12 months.
These are just a handful of the figures considered in Nordstrom and Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JWN and URBN is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Nordstrom (JWN) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Nordstrom (JWN - Free Report) . JWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.08, while its industry has an average P/E of 14.53. Over the last 12 months, JWN's Forward P/E has been as high as 13.04 and as low as 5.73, with a median of 7.85.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JWN has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.39.
Finally, our model also underscores that JWN has a P/CF ratio of 3.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JWN's P/CF compares to its industry's average P/CF of 8.26. Over the past year, JWN's P/CF has been as high as 3.83 and as low as 2.12, with a median of 2.73.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 1 (Strong Buy) stock with a Value score of A.
Urban Outfitters is trading at a forward earnings multiple of 12.24 at the moment, with a PEG ratio of 0.68. This compares to its industry's average P/E of 14.53 and average PEG ratio of 0.74.
Over the past year, URBN's P/E has been as high as 16.59, as low as 7.48, with a median of 11.20; its PEG ratio has been as high as 0.92, as low as 0.42, with a median of 1.26 during the same time period.
Furthermore, Urban Outfitters holds a P/B ratio of 1.74 and its industry's price-to-book ratio is 2.84. URBN's P/B has been as high as 1.78, as low as 1.07, with a median of 1.37 over the past 12 months.
These are just a handful of the figures considered in Nordstrom and Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JWN and URBN is an impressive value stock right now.