Nordstrom (JWN) Outpaces Stock Market Gains: What You Should Know
Nordstrom (JWN) closed the most recent trading day at $31.85, moving +1.27% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.48%.
Prior to today's trading, shares of the department store operator had lost 3.14% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.69% and the S&P 500's gain of 3.62% in that time.
JWN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.80, down 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.94 billion, down 3.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.34 per share and revenue of $15.58 billion, which would represent changes of -5.92% and -1.75%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JWN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. JWN is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, JWN is holding a Forward P/E ratio of 9.42. This represents a discount compared to its industry's average Forward P/E of 11.82.
Investors should also note that JWN has a PEG ratio of 1.57 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.15 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 98, which puts it in the top 39% 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.