JWN - Nordstrom, Inc.
32.59 0.00 (0.00%)
After hours: 4:27PM EDT
| Previous Close | 32.10 |
| Open | 32.16 |
| Bid | 32.49 x 1100 |
| Ask | 32.70 x 1200 |
| Day's Range | 32.09 - 32.79 |
| 52 Week Range | 25.01 - 67.75 |
| Volume | 3,921,450 |
| Avg. Volume | 5,393,735 |
| Market Cap | 5.049B |
| Beta (3Y Monthly) | 0.69 |
| PE Ratio (TTM) | 10.75 |
| EPS (TTM) | 3.03 |
| Earnings Date | Nov 13, 2019 - Nov 18, 2019 |
| Forward Dividend & Yield | 1.48 (4.61%) |
| Ex-Dividend Date | 2019-08-29 |
| 1y Target Est | 32.88 |
- GuruFocus.com
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- Barrons.com
The Dow Jones Industrial Average Is Barely Moving. Nordstrom and Macy’s Are Getting Hammered.
It’s a yawner of a day, what with it sandwiched between the attacks on Saudi Arabia over the weekend and the Fed’s rate decision on Wednesday. that hasn’t stopped some old-style retailer from getting hit...hard
- InvestorPlace
Wait for More Clarity on Macy’s Stock
It has been a rough few years for mall retail stalwart Macy's (NYSE:M) and M stock. Once the center of the American retail landscape by virtue of being at the center of every mall in America, Macy's has since become increasingly less relevant in the American retail landscape it used to dominate.Source: Shutterstock You can thank e-commerce for that. Long story short, e-commerce disrupted the traditional retail world, Macy's failed to adapt quickly enough, and is now left with a bunch of stores that aren't as busy as they used to be, and an e-commerce business that isn't as big as it should be. * 7 Momentum Stocks to Buy On the Dip The numbers speak for themselves. Over the past five years, Macy's revenues have dropped 10%, Macy's operating profits have dropped 50%, and Macy's stock has dropped 70%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWill the slide ever end? Maybe. There is a potential path forward here wherein Macy's sales and margin stabilize, leading to a breakout rally in M stock. But, this path lacks visibility at the current moment. Instead, the most likely path forward here is continued weakness in the numbers and in shares.The implication? Don't count out Macy's stock yet, but don't count it in, either. Instead, monitor the stock from the sidelines, and see how things progress over the next few quarters. Macy's Stock Could Breakout HigherThere is a potential pathway wherein Macy's stock soars from current levels, and that pathway was outlined in an investor presentation management gave at the Goldman Sachs Annual Global Retail Conference in early September.The strategy is simple. Use technology to optimize the supply chain, and lower logistics expenses. Leverage data to reduce promotional activity, and grow gross margins. Refresh stores to be more tech-savvy and less labor-dependent, thereby reducing labor expenses and stabilizing sales. Increase usage of private label brands, so as to create a differentiated product value prop which also helps stabilize sales trends.To be sure, doing all of that is a tall order. But it's doable. And, if management does manage to do all of that, Macy's stock could explode higher from here.Here are the numbers: Net revenues are around $25 billion and dropping. Best case scenario, better product SKUs, a more attractive store presentation, and heavier usage of private label brands drives sales stabilization over the next several years. At the same time, gross margins -- which are at 39% and dropping -- improve as promotional activity becomes smarter and less prevalent, and the supply chain becomes more efficient. Labor expense reduction pulls out unnecessary SG&A dollars, and the opex rate somewhat stabilizes around 36%.Fast forward to 2025. Macy's could be looking at $25 billion in revenues, with 39% gross margins and a 36% opex rate. Ultimately, that makes right around $3 in EPS seem doable by then. Even if you throw just a conservative 10-times forward multiple on that $3 EPS estimate, that implies a 2024 price target for M stock of $30 -- almost double today's price tag. Secular Challenges Remain for M StockThe problem with the bull thesis on Macy's stock today is that secular challenges cloud visibility towards a $30 price tag for M stock.What are those secular challenges? First and foremost, it appears the retail world has moved on from Macy's. Right now, the consumer environment is as healthy as possible -- low unemployment, big wage gains, low rates, good credit, etc. Yet, Macy's reported comparable sales growth of just 0.3% last quarter. That's awful considering the backdrop, and it is broadly indicative of the fact that while consumers are spending money, they aren't spending money at Macy's.Second, Macy's is in a tough position where it may be tough to become relevant again. Other retailers have clear and differentiated value props. Nordstrom (NYSE:JWN), for example, is the premium fashion mall retailer. Kohl's (NYSE:KSS), meanwhile, has off-price, off-mall appeal. Best Buy (NYSE:BBY) gives customers quasi-necessary, in-store advice on the latest tech gadgets.What is Macy's differentiated value prop? Tough to say. They are somewhat stuck in the middle ground between premium fashion and off price, and don't really offer customers all that much that is unique to Macy's. Until they do, it could be tough for Macy's to improve traffic trends.Third, management is all about reducing promotional activity. That's a smart move. But, right now, it looks like promotions are the only thing driving traffic into Macy's stores. Thus, reduced promotional activity could have a materially negative impact on sales, which could result in continued profit erosion despite margin improvement.Big picture: there are still big secular challenges here, none of which have been have been fixed, yet. Until they do get fixed, it is probably best to avoid M stock. Bottom Line on M StockThe retail environment has changed dramatically over the past several years, as customers and sales have migrated in bulk into the digital channel. Some traditional retailers will survive this migration. Some traditional retailers will not.Right now, Macy's is having a tough time convincing investors that it will wind up in the first group. Until they do, it's probably best to avoid M stock despite its home run potential in the long run.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Wait for More Clarity on Macy's Stock appeared first on InvestorPlace.
- InvestorPlace
Buy Nordstrom Stock, But Not Because of Its Low Valuation
Nordstrom (NYSE:JWN) stock has suddenly moved into rebound mode. After hitting a multi-year low of around $25 per share, the stock has surged over the last few weeks, taking Nordstrom stock to almost $35 per share.Source: Jonathan Weiss / Shutterstock.com JWN remains far away from delivering impressive profit growth, and its low multiple may not persuade investors to buy after the recent run-up. Still, it has become a lucrative choice for an unexpected group -- dividend investors. Nordstrom's Amazing TurnaroundNordstrom stock has seen an impressive run since it announced an earnings beat on Aug. 21. The report began a rally that has taken JWN stock higher by about 40% in less than a month. Positive developments on trade talks with China have further fueled the rally.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Big IPO Stocks From 2019 to Watch Yes, amid the Amazon (NASDAQ:AMZN) threat, JWN and peers such as JCPenney (NYSE:JCP), Kohl's (NYSE:KSS) and Macy's (NYSE:M) have faced challenges over the last few years. As late as 2015, Nordstrom stock traded at over $83 per share. However, fears of Amazon and factors such as the trade war have helped send JWN to recent lows of around $25 per share.While the competition spelled bankruptcy for Sears (OTCMKTS:SHLDQ) and could for JCPenney, Nordstrom has found a way to remain relevant in a retail environment increasingly moving online. As a result, we now see a turnaround in Nordstrom stock.Even with the huge run-up, the forward price-to-earnings ratio stands at about 10.4. That does not seem expensive. Also, it has maintained an average P/E ratio of around 18.7 over the previous five years and such multiples usually signal a strong long-term buy. Dividends Have Become the Draw for JWNStill, looking at profits, one has to wonder if Nordstrom stock will face more permanent multiple compression. Analysts predict profits will shrink by 8.6% this year. For next year, Wall Street forecasts an increase of only 3.3%. It also predicts long-term earnings increases of 3.68% per year over the next five years. Given the slow pace of profit growth, the low P/E ratio alone would not persuade me to buy Nordstrom stock.However, I see a reason for dividend investors to buy stock in JWN. The silver lining in the long-time decline in JWN stock is the rising dividend yield. As late as 2014, JWN investors earned 1.22% in dividends. At that time, investors received $1.32 per share. The annual payout now stands at $1.48 per share and has remained at that level since 2016.Still, despite a modest increase, the yield has now risen to just over 4.3%. And it remains there despite the massive increase in the stock over the last month.To be sure, this payout presents somewhat of a burden. With a dividend payout ratio of 49.33%, the payout claims nearly half of the company's profits. Still, with growth returning, the company has no reason to put the stock at risk by cutting the dividend. Moreover, even with only 3%-plus profit growth, the payout ratio will fall over time. Final Thoughts on Nordstrom StockNordstrom stock should continue to rise over time, but not for a reason many would expect. Yes, the forward P/E of 10.4 looks cheap, both by S&P 500 and even by JWN standards. However, with profit growth expected to remain in the low-single-digits for years into the future, the P/E may not return to long-term averages of around 18.7.Still, the long-term decline in Nordstrom stock has led to an unexpected result -- a high dividend yield. JWN has become a well-suited vehicle for producing a cash return exceeding both the S&P 500 and most any bank deposit. Moreover, with a P/E ratio that remains low, they should receive the added benefit of a rising stock price.For retail investors wanting both growth and income, JWN stock may have just become the equity of choice.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Buy Nordstrom Stock, But Not Because of Its Low Valuation appeared first on InvestorPlace.
- GlobeNewswire
SHAREHOLDER ALERT: Levi & Korsinsky, LLP Reminds Investors of an Investigation Involving Possible Securities Fraud Violations by Certain Officers and Directors of Nordstrom, Inc.
NEW YORK, Sept. 13, 2019 -- Levi & Korsinsky announces it has commenced an investigation of Nordstrom, Inc. (“Nordstrom” or “the Company”) (NYSE: JWN) concerning possible.
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Buy Lululemon (LULU) Stock at New Highs on Digital & Menswear Growth?
Breaking down Lululemon's (LULU) Q2 2019 financial results that wowed Wall Street last week. And why Lulu stock looks like a buy as it expands its digital, international, and menswear businesses to further challenge Nike (NKE) - Full-Court Finance.
- InvestorPlace
3 Reasons Why Amazon Stock Should be in Your Cart Ahead of the Recession
Intuitively, many investors are undoubtedly tempted to ignore the recent move up in Amazon (NASDAQ:AMZN). Although AMZN stock has seen some volatility since hitting a bottom in August, shares fundamentally have a credibility problem.Source: mirtmirt / Shutterstock.com Everywhere you look, you see multiple pressure points. Of course, the biggest headwind comes in the form of the U.S.-China trade war. Neither side shows any interest in conceding to the other. Additionally, national pride and political reputation are at stake for both battling parties. While the conflict drags on, both the U.S. and Chinese economies are feeling the hurt.Because the trade war is taking its toll on multiple industries including manufacturing, it imposes problems for the consumer. If the tit-for-tat tariffs roll into next year -- and that seems likely to be the case -- consumer sentiment will almost surely fade. Of course, that's a huge negative for AMZN stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother factor working against Amazon stock is its target consumers' behaviors. Let's face it: most folks don't shop on Amazon.com to buy groceries or essential products. No, the e-commerce giant exists to serve our discretionary needs. In a decisive bull market, this was all fine and well.But with a possible market downturn on the horizon, AMZN stock looks less appealing. It's no surprise that last month, investors took a dim view on luxury retailers like Nordstrom (NYSE:JWN) and even mainstream Macy's (NYSE:M). * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off But should investors avoid Amazon stock? Technically, the latest moves aren't that impressive over a larger framework. Still, on a fundamental basis, Amazon offers some surprisingly recession-resistant catalysts that make buying on any dips a viable proposition. E-commerce is Ideal for Cost-Conscious ConsumersLogically, in a recession, everyone should pare down unnecessary spending. After all, paying rent or buying groceries is far more important than that shiny new gadget. In that environment, consumer-levered investments like Amazon stock don't intuitively appeal to market buyers.That said, we're Americans. Although we'll collectively trim down our spending in a recession, we won't quit the habit. Witness the last recession, when retail sales, excluding food services, dipped noticeably. Yet total retail sales recovered completely inside of four years.Moreover, Amazon has taken an increasingly larger share of the broader retail pie. So, recession or not, people will shop on the e-commerce giant's website. And that augurs well for AMZN stock.You also must consider the inherently cost-effective nature of online shopping. Obviously, you don't have to drive to a physical location: you can simply pick and choose what you want from the comfort of your own home. Neither do you have to fight for parking or stand in line. Over time, these little frustrations add up to serious dollars, dollars which recession-hurting consumers don't have.Thus, don't be surprised if AMZN stock performs well in a recession, especially at the expense of traditional retailers. AMZN to Benefit from Premium on Cheap EntertainmentRecently, I made the case that a recession is exactly what Roku (NASDAQ:ROKU) needs. Although a seemingly click-baity thing to say, I presented a logical argument: during an economic slump, sources of cheap entertainment will experience a surge in demand.Understandably, humans can't keep swinging indefinitely. At some point, they need to unwind, or they need a little bit of joy to look forward to. For instance, during the Great Depression, the so-called golden age of Hollywood came alive. The box office provided a moment of respite to American workers who were otherwise battling an unprecedented crisis.By the way, this isn't just a yesteryear concept. During the Great Recession, beleaguered professionals flocked to the box office. * 7 Best Tech Stocks to Buy Right Now Now it remains to be seen if Hollywood can repeat its magic in the next recession. For what it's worth, I think it can. But one thing is certain: people will look for cheap distractions. AMZN has the right ticket.Once you're done extending your plastic on Amazon.com, you can take advantage of their streaming services. A few years back, the company spun off Prime Video in a bid to disrupt Netflix (NASDAQ:NFLX). And in a recession, Amazon has an advantage of consolidating various consumer-level components under one umbrella. AWS to Support Amazon StockThe beauty of Amazon stock is that it's no longer just a consumer-related investment. Over the years, the company has disrupted many technology sectors.The biggest impact so far is with cloud services. At the latest count, AMZN owns nearly half the public cloud's infrastructure. Incredibly, they're leading names like Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), companies that really should take the lead here.Naturally, this gives Amazon considerable leverage and buffer should a recession strike. Moreover, the cloud dominance virtually guarantees the company continued relevancy, even in a slump. That's because when used appropriately, the cloud can save large enterprises money on operating costs.No matter where you turn, Amazon has multiple revenue streams to weather an economic crisis. Therefore, I'm more than willing to give AMZN stock the benefit of the doubt.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 3 Reasons Why Amazon Stock Should be in Your Cart Ahead of the Recession appeared first on InvestorPlace.
- GlobeNewswire
Bragar Eagel & Squire, P.C. Is Investigating Pintec Technology, Cadence Bancorporation, Eldorado Resorts, and Nordstrom on Behalf of Stockholders and Encourages Investors to Contact the Firm
NEW YORK, Sept. 06, 2019 -- Bragar Eagel & Squire, P.C. is investigating potential claims against Pintec Technology Holdings Limited (NASDAQ: PT), Cadence Bancorporation.
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Why RH Stock Looks Like a Buy Ahead of High-End Retailer's Q2 2019 Earnings
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Nordstrom Rack To Open At Willowbrook Shopping Centre In Langley, British Columbia
Nordstrom Rack To Open At Willowbrook Shopping Centre In Langley, British Columbia
- Yahoo Finance
J.C. Penney is nearing its death: top retail strategist
J.C. Penney is on life support, says one veteran retail analyst.
- Business Wire
INVESTOR ALERT: Kirby McInerney LLP Announces an Investigation of Shareholder Claims Against Nordstrom Inc.
The law firm of Kirby McInerney LLP is investigating potential claims against Nordstrom Inc. (“Nordstrom” or the “Company”) (NYSE: JWN). This investigation concerns whether Nordstrom has violated federal securities laws and/or engaged in other unlawful business practices. On November 15, 2018, the company announced disappointing sales results, weakening sales growth, and that credit card holders were charged incorrect interest amounts.
- Zacks
Nordstrom (JWN) Debuts Local 'Mini' Stores in New York
Nordstrom (JWN) opened its first Nordstrom Local store in New York today, expanding its store portfolio.
- GuruFocus.com
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- GlobeNewswire
Glancy Prongay & Murray LLP Continues Its Investigation on Behalf of Nordstrom Inc. Investors (JWN)
LOS ANGELES, Sept. 05, 2019 -- Glancy Prongay & Murray LLP (“GPM”) continues its investigation on behalf of Nordstrom Inc. (“Nordstrom” or the “Company”) (NYSE: JWN).
- GlobeNewswire
INVESTOR ALERT: Law Offices of Howard G. Smith Continues Its Investigation on Behalf of Nordstrom Inc. Investors
BENSALEM, Pa., Sept. 05, 2019 -- Law Offices of Howard G. Smith continues its investigation on behalf of Nordstrom Inc. (“Nordstrom” or the “Company”) (NYSE: JWN) investors.
- Motley Fool
Why Nordstrom Stock Was Gaining Today
An ease in trade tensions helped lift the department store chain.
- TheStreet.com
Nordstrom Shares Rise On Trade War Developments, Service Expansion
The retailer is seeing a rally amid news trade talks have been scheduled between the U.S. and China. Nordstrom Local service hubs also are expanding.
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This REIT Stock Is Struggling, but Its Top 2 Malls Are Thriving
The company has invested heavily in its best malls -- and those investments are paying off.
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Wall Street Green on Wednesday
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- Yahoo Finance Video
Nordstrom to accept Macy’s and Kohl’s returns in-store
The department store chain will accept merchandise returns from rivals like Macy’s and Kohl’s at it's new small-format locations, like the one in New York City. Yahoo Finance’s Myles Udland, Jen Rogers and Brian Sozzi sit down to discuss
