) is set to report third-quarter fiscal 2013 results on Nov 14.
Last quarter, it posted a 5.7% positive surprise. Let us see how
things are shaping up for this announcement.
Growth Factors in the Past Quarter
The company's impressive merchandise improvement strategies
such as customer loyalty and Fashion Reward programs facilitated
the mid single-digit top-line growth in the past quarter.
Moreover, same-store sales rose 4.4% over the year-ago quarter.
Furthermore, we remain impressed with the company's sustained
focus on driving merchandise margins and effective cost
management, which helped it to post strong top and bottom-line
Our proven model does not conclusively project Nordstrom as
likely to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
ESP for Nordstrom is 0.00% since the Most Accurate estimate
stands at 66 cents per share, which is in line with the Zacks
Zacks #3 Rank (Hold):
Nordstrom's Zacks Rank #3 increases the predictive power of ESP.
However, we also need to have a positive ESP to be confident of
an earnings surprise call. We caution against stocks with Zacks
Rank #4 and 5 (Sell-rated stocks) going into earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
Nordstrom is not the only firm we are looking up to this
earnings season. Our model shows that the following stocks have
the right combination to post an earnings beat:
) with Earnings ESP of +1.11% and a Zacks Rank #1 (Strong
Best Buy Co., Inc.
) with Earnings ESP of +9.09% and a Zacks Rank #1 (Strong
Five Below, Inc
) with Earnings ESP of +25.00% and a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
FIVE BELOW INC (FIVE): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
NORDSTROM INC (JWN): Free Stock Analysis
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