Nordstrom reported quarterly earnings that fell short of analysts’ expectations, amid rising labor costs hurting profits.
The retail company’s earnings for the three months ending October came in at 39 cents vs. 56 cents expected by analysts polled by Refinitiv.
Revenue of $3.64 billion, however, topped expectations of $3.55 billion.
The company’s namesake department store brand’s revenue rose +11% year-over-year. At Nordstrom Rack, an off-price division, revenue rose +35% from a year ago.
Digital sales (representing 40% of the business) plunged -12% year over year and rose +20% on a two-year basis. Nordstrom mentioned that its annual Anniversary Sale (which takes place primarily online) was moved entirely into the third quarter last year; however, this year it only fell during one week of the quarter.
JWN broke above its upper Bollinger Band on November 25, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 43 similar instances where the stock broke above the upper band. In of the 43 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for JWN moved out of overbought territory on November 26, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where JWN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on November 27, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on JWN as a result. In of 100 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
JWN moved below its 50-day moving average on November 27, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JWN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for JWN entered a downward trend on November 22, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Moving Average Convergence Divergence (MACD) for JWN just turned positive on November 25, 2024. Looking at past instances where JWN's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for JWN crossed bullishly above the 50-day moving average on November 25, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 23 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where JWN advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.794) is normal, around the industry mean (2.306). P/E Ratio (14.373) is within average values for comparable stocks, (32.879). Projected Growth (PEG Ratio) (0.297) is also within normal values, averaging (1.637). Dividend Yield (0.034) settles around the average of (0.033) among similar stocks. P/S Ratio (0.253) is also within normal values, averaging (0.541).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. JWN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. JWN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retailer of apparel, shoes, cosmetics and accessories
Industry DepartmentStores