Nordstrom (JWN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Nordstrom (JWN) closed at $23.51, marking a -0.13% move from the previous day. This change lagged the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the department store operator had lost 3.09% in the past month. In that same time, the Retail-Wholesale sector gained 8.19%, while the S&P 500 gained 5.55%.
Wall Street will be looking for positivity from Nordstrom as it approaches its next earnings report date. The company is expected to report EPS of $0.81, up 65.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, up 8.55% from the prior-year quarter.
JWN's full-year Zacks Consensus Estimates are calling for earnings of $3.20 per share and revenue of $15.76 billion. These results would represent year-over-year changes of +190.91% and +6.57%, respectively.
Any recent changes to analyst estimates for Nordstrom should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 1.01% lower within the past month. Nordstrom is currently a Zacks Rank #3 (Hold).
Digging into valuation, Nordstrom currently has a Forward P/E ratio of 7.35. This valuation marks a discount compared to its industry's average Forward P/E of 9.46.
Also, we should mention that JWN has a PEG ratio of 1.23. 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. JWN's industry had an average PEG ratio of 0.82 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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