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Are Investors Undervaluing Nordstrom (JWN) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Nordstrom (JWN - Free Report) is a stock many investors are watching right now. JWN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.73, while its industry has an average P/E of 10.80. Over the last 12 months, JWN's Forward P/E has been as high as 30.26 and as low as 6.97, with a median of 14.08.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JWN has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.47.
Finally, we should also recognize that JWN has a P/CF ratio of 4.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.34. JWN's P/CF has been as high as 21.19 and as low as 3.28, with a median of 4.85, all within the past year.
Zumiez (ZUMZ - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. ZUMZ is a # 2 (Buy) stock with a Value grade of A.
Additionally, Zumiez has a P/B ratio of 1.99 while its industry's price-to-book ratio sits at 3.25. For ZUMZ, this valuation metric has been as high as 2.36, as low as 1.63, with a median of 1.96 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Nordstrom and Zumiez are likely undervalued currently. And when considering the strength of its earnings outlook, JWN and ZUMZ sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Nordstrom (JWN) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Nordstrom (JWN - Free Report) is a stock many investors are watching right now. JWN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.73, while its industry has an average P/E of 10.80. Over the last 12 months, JWN's Forward P/E has been as high as 30.26 and as low as 6.97, with a median of 14.08.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JWN has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.47.
Finally, we should also recognize that JWN has a P/CF ratio of 4.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.34. JWN's P/CF has been as high as 21.19 and as low as 3.28, with a median of 4.85, all within the past year.
Zumiez (ZUMZ - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. ZUMZ is a # 2 (Buy) stock with a Value grade of A.
Additionally, Zumiez has a P/B ratio of 1.99 while its industry's price-to-book ratio sits at 3.25. For ZUMZ, this valuation metric has been as high as 2.36, as low as 1.63, with a median of 1.96 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Nordstrom and Zumiez are likely undervalued currently. And when considering the strength of its earnings outlook, JWN and ZUMZ sticks out as one of the market's strongest value stocks.