Nordstrom (JWN) Gains But Lags Market: What You Should Know
Nordstrom (JWN) closed the most recent trading day at $18.02, moving +1.58% from the previous trading session. This move lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the department store operator had lost 0.11% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.37% and the S&P 500's loss of 9.93% in that time.
Investors will be hoping for strength from Nordstrom as it approaches its next earnings release. In that report, analysts expect Nordstrom to post earnings of $0.13 per share. This would mark a year-over-year decline of 66.67%. Meanwhile, our latest consensus estimate is calling for revenue of $3.5 billion, down 3.63% from the prior-year quarter.
JWN's full-year Zacks Consensus Estimates are calling for earnings of $2.40 per share and revenue of $15.56 billion. These results would represent year-over-year changes of +118.18% and +5.21%, respectively.
It is also important to note the recent changes to analyst estimates for Nordstrom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Nordstrom is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Nordstrom has a Forward P/E ratio of 7.4 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.96.
Also, we should mention that JWN has a PEG ratio of 1.23. 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 1.27 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 193, which puts it in the bottom 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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