Yahoo Finance Nordstrom (JWN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Nordstrom (JWN) closed at $20.76, marking a -1.75% move from the previous day. This change lagged the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the department store operator had lost 18.73% over the past month, lagging the Retail-Wholesale sector's loss of 6.15% and the S&P 500's loss of 8.3% in that time.
Investors will be hoping for strength from Nordstrom as it approaches its next earnings release. The company is expected to report EPS of $0.81, up 65.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.97 billion, up 8.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $15.71 billion. These totals would mark changes of +189.09% and +6.22%, respectively, from last year.
Any recent changes to analyst estimates for Nordstrom should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nordstrom is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Nordstrom's current valuation metrics, including its Forward P/E ratio of 6.64. For comparison, its industry has an average Forward P/E of 8.82, which means Nordstrom is trading at a discount to the group.
Also, we should mention that JWN has a PEG ratio of 1.11. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% 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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