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Nordstrom (JWN) Gains But Lags Market: What You Should Know
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In the latest trading session, Nordstrom (JWN - Free Report) closed at $22.65, marking a +0.04% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the department store operator had gained 2.77% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.81% and the S&P 500's loss of 4.02% in that time.
Nordstrom will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nordstrom to post earnings of $1.05 per share. This would mark year-over-year growth of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.41 billion, up 21.11% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Nordstrom. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nordstrom is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Nordstrom is holding a Forward P/E ratio of 11.29. For comparison, its industry has an average Forward P/E of 11.17, which means Nordstrom is trading at a premium to the group.
Meanwhile, JWN's PEG ratio is currently 1.88. 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 was holding an average PEG ratio of 0.71 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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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Nordstrom (JWN) Gains But Lags Market: What You Should Know
In the latest trading session, Nordstrom (JWN - Free Report) closed at $22.65, marking a +0.04% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the department store operator had gained 2.77% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.81% and the S&P 500's loss of 4.02% in that time.
Nordstrom will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nordstrom to post earnings of $1.05 per share. This would mark year-over-year growth of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.41 billion, up 21.11% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Nordstrom. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nordstrom is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Nordstrom is holding a Forward P/E ratio of 11.29. For comparison, its industry has an average Forward P/E of 11.17, which means Nordstrom is trading at a premium to the group.
Meanwhile, JWN's PEG ratio is currently 1.88. 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 was holding an average PEG ratio of 0.71 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.