Back to top

Image: Bigstock

Nordstrom (JWN) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Nordstrom (JWN - Free Report) closed at $33.40, marking a +0.57% move from the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the department store operator had lost 1.77% in the past month. In that same time, the Retail-Wholesale sector gained 4.55%, while the S&P 500 gained 4.13%.

Wall Street will be looking for positivity from JWN as it approaches its next earnings report date. On that day, JWN is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 15.79%. Our most recent consensus estimate is calling for quarterly revenue of $3.94 billion, down 3.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $15.58 billion. These totals would mark changes of -5.63% and -1.75%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for JWN. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% lower. JWN is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, JWN currently has a Forward P/E ratio of 9.92. This represents a discount compared to its industry's average Forward P/E of 11.94.

We can also see that JWN currently has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.1 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nordstrom, Inc. (JWN) - free report >>

Published in