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.
Will Nordstrom's Strategies Drive Stock Momentum in 2017?
Read MoreHide Full Article
Nordstrom, Inc. (JWN - Free Report) seems to be riding on a robust brand image, amendments to its operating model to generate cost savings and constant store expansion efforts. In addition, the company’s long-term revenue target of $20 billion by 2020 also bodes well. Alongside, management remains keen on advancing in the technology space by boosting eCommerce and digital networks, as well as improving its supply-chain channels and marketing efforts.
We note that Nordstrom is making significant progress with respect to its customer-based strategy and also executing its strategy of enhancing market share as well as strengthening its capabilities through further investments. With regard to cost savings, the company also plans to strike a balance between its sales and expense growth.
Further, this leading fashion retailer announced plans to amend its operating model in response to constant slowdown in mall traffic resulting from customers’ shift to online shopping. In this regard, management plans to cut costs through a phased approach and eliminate about 300–400 jobs, which if concluded on time, will likely generate cost savings worth $60 million in fiscal 2016.
Moreover, the company primarily caters to the upscale segment, which enables it to generate high-margin revenues through its globally recognized brands. Additionally, Nordstrom offers a more inclusive selection of quality merchandise that further distinguishes it from the other mall-based department store retailers. Hence, all these efforts, along with the company’s focus on its domestic and Canadian store expansion, are likely to help the company deliver sustainable growth, going ahead.
We note that this Zacks Rank #2 (Buy) stock has yielded a return of 25.4% in the past six months and outperformed the Zacks categorized Retail-Apparel/Shoe industry’s gain of 4.4%. We believe these strategic endeavors along with a VGM Score of “A” and long-term earnings growth rate of 8%, position Nordstrom well for future growth.
The Children's Place, with long-term earnings growth rate of 10.3%, gained 25.9% in the past six months.
Christopher & Banks, with long-term earnings growth rate of 15%, surged a whopping 61.4% in the past three months.
Tilly's, with long-term earnings growth rate of 13%, skyrocketed 127.8% in the past six months.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Nordstrom's Strategies Drive Stock Momentum in 2017?
Nordstrom, Inc. (JWN - Free Report) seems to be riding on a robust brand image, amendments to its operating model to generate cost savings and constant store expansion efforts. In addition, the company’s long-term revenue target of $20 billion by 2020 also bodes well. Alongside, management remains keen on advancing in the technology space by boosting eCommerce and digital networks, as well as improving its supply-chain channels and marketing efforts.
We note that Nordstrom is making significant progress with respect to its customer-based strategy and also executing its strategy of enhancing market share as well as strengthening its capabilities through further investments. With regard to cost savings, the company also plans to strike a balance between its sales and expense growth.
NORDSTROM INC Price and Consensus
NORDSTROM INC Price and Consensus | NORDSTROM INC Quote
Further, this leading fashion retailer announced plans to amend its operating model in response to constant slowdown in mall traffic resulting from customers’ shift to online shopping. In this regard, management plans to cut costs through a phased approach and eliminate about 300–400 jobs, which if concluded on time, will likely generate cost savings worth $60 million in fiscal 2016.
Moreover, the company primarily caters to the upscale segment, which enables it to generate high-margin revenues through its globally recognized brands. Additionally, Nordstrom offers a more inclusive selection of quality merchandise that further distinguishes it from the other mall-based department store retailers. Hence, all these efforts, along with the company’s focus on its domestic and Canadian store expansion, are likely to help the company deliver sustainable growth, going ahead.
We note that this Zacks Rank #2 (Buy) stock has yielded a return of 25.4% in the past six months and outperformed the Zacks categorized Retail-Apparel/Shoe industry’s gain of 4.4%. We believe these strategic endeavors along with a VGM Score of “A” and long-term earnings growth rate of 8%, position Nordstrom well for future growth.
Other Key Picks
Other favorably placed stocks in the same industry include The Children's Place, Inc. (PLCE - Free Report) , Christopher & Banks Corporation and Tilly's, Inc. (TLYS - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Children's Place, with long-term earnings growth rate of 10.3%, gained 25.9% in the past six months.
Christopher & Banks, with long-term earnings growth rate of 15%, surged a whopping 61.4% in the past three months.
Tilly's, with long-term earnings growth rate of 13%, skyrocketed 127.8% in the past six months.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>