Nordstrom (JWN) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

In the latest trading session, Nordstrom (JWN) closed at $23.20, marking a -1.15% move from the previous day. This change lagged the S&P 500’s daily loss of 0.41%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.13%.

– Zacks

Heading into today, shares of the department store operator had gained 11.5% over the past month, outpacing the Retail-Wholesale sector’s loss of 2.12% and the S&P 500’s gain of 2.36% in that time.

Wall Street will be looking for positivity from Nordstrom as it approaches its next earnings report date. In that report, analysts expect Nordstrom to post earnings of $1.05 per share. This would mark year-over-year growth of 400%. Our most recent consensus estimate is calling for quarterly revenue of $4.41 billion, up 21.11% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $14.72 billion, which would represent changes of +129.16% and +37.36%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Nordstrom. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nordstrom currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Nordstrom currently has a Forward P/E ratio of 18.41. Its industry sports an average Forward P/E of 12.72, so we one might conclude that Nordstrom is trading at a premium comparatively.

Meanwhile, JWN’s PEG ratio is currently 3.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Retail – Apparel and Shoes industry currently had an average PEG ratio of 0.96 as of yesterday’s close.

The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.

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