TRENDING KEYWORDS
Nordstrom (JWN, $34.18) forecasts a weaker-than-expected sales growth guidance for fiscal 2021
Nordstrom issued a weaker-than-expected sales growth guidance for fiscal 2021.
The luxury department store chain projects a revenue growth of +25%, compared to the Refinitiv analyst consensus of +26.6%.
According to Nordstrom’s estimates, digital sales would account for 50% of its revenue. It predicts EBIT will be positive and the leverage ratio will be about 3 times by year-end.
Over the long term, Nordstrom projects revenue growth of low single-digits annually from 2019 levels. It expects operating income to grow faster than revenue, and predicts EBIT margin as a percentage of sales to exceed 6%.
It expects return on invested capital to be in the low teens, annual operating cash flow to exceed $1 billion, annual capex i to be 3% to 4% of sales, and the leverage ratio to return to about 2.5 times or below by the end of 2022.
JWN sees its Stochastic Oscillator recovers from oversold territory
On May 16, 2022, the Stochastic Indicator for JWN moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 55 instances where the indicator left the oversold zone. In 48 of the 55 cases the stock moved higher in the following days. This puts the odds of a move higher at over 87%.
Current price $24.36 crossed the support line at $19.57 and is trading between $29.37 resistance and $19.57 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -16% Downtrend, while the week of 05/09/22 - 05/16/22 shows a +4% Uptrend.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where JWN's RSI Indicator exited the oversold zone, 20 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
Following a +6.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where JWN advanced for three days, in 219 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
JWN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on April 21, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on JWN as a result. In 82 of 101 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for JWN turned negative on April 08, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 47 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
JWN moved below its 50-day Moving Average on May 05, 2022 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for JWN crossed bearishly below the 50-day moving average on May 09, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 16 of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 84%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
The Aroon Indicator for JWN entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 72%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.72.
The Tickeron SMR rating for this company is 7 (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 Valuation Rating of 33 (best 1 - 100 worst) indicates that the company is slightly 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: JWN's P/B Ratio (6.583) is slightly higher than the industry average of (2.358). P/E Ratio (21.786) is within average values for comparable stocks, (121.652). Projected Growth (PEG Ratio) (0.316) is also within normal values, averaging (1.269). JWN has a moderately low Dividend Yield (0.008) as compared to the industry average of (0.031). P/S Ratio (0.264) is also within normal values, averaging (0.750).
The Tickeron Price Growth Rating for this company is 62 (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 PE Growth Rating for this company is 100 (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 100 (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.
A department store sells a wide variety of consumer goods under different “departments,” including (but not necessarily limited to) apparel, household appliances, home furnishings, personal care products, cosmetics, consumer electronics. During healthy macroeconomic conditions, consumers typically won’t shy away from big-ticket purchases; but during a downturn, consumer spending might get limited to the most necessary/daily essentials. Several department stores purchase items on bulk from manufacturers for resale to consumers at a profit. Some of the largest department stores companies in the U.S. include Kohl's Corporation, Macy's Inc., and Ollie's Bargain Outlet Holdings Inc.
The average market capitalization across the Department Stores Industry is 4.1B. The market cap for tickers in the group ranges from 208.1K to 12.3T. MHRTF holds the highest valuation in this group at 12.3T. The lowest valued company is BONT at 208.1K.
The average weekly price growth across all stocks in the Department Stores Industry was -0.24%. For the same Industry, the average monthly price growth was -5.88%, and the average quarterly price growth was -14.78%. LRENY experienced the highest price growth at 10.07%, while AONNF experienced the biggest fall at -20.57%.
- 4/23/22 4:20 AM: Nordstrom (JWN, $26.35) was a top loser this week, declining -8.67%
- 3/10/22 6:33 AM: Nordstrom (JWN, $24.02) was a top loser this week, declining -10.81%
- 3/8/22 8:37 AM: Nordstrom (JWN, $23.43) was a top weekly gainer, with a +12.97% jump. Expect an Uptrend reversal
The average weekly volume growth across all stocks in the Department Stores Industry was -7.59%. For the same stocks of the Industry, the average monthly volume growth was 18.48% and the average quarterly volume growth was -8.12%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 52%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.31.
20 stocks in the group of tickers exhibit a similar negative trend based on the Aroon indicator with an average likelihood of 79%.
The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Bath & Body Works (NYSE:BBWI), Capri Holdings Limited (NYSE:CPRI), Gap (The) (NYSE:GPS), Nordstrom (NYSE:JWN), Foot Locker (NYSE:FL), Abercrombie & Fitch Co (NYSE:ANF), Stitch Fix (NASDAQ:SFIX).
The average market capitalization across the group is 6.8B. The market cap for tickers in the group ranges from 13.3M to 67.2B. TJX holds the highest valuation in this group at 67.2B. The lowest valued company is MOGU at 13.3M.
The average weekly price growth across all stocks in the group was 0.68%. For the same group, the average monthly price growth was -9.54%, and the average quarterly price growth was -36.13%. JILL experienced the highest price growth at 15.06%, while MOGU experienced the biggest fall at -20.66%.
- 5/14/22 4:24 AM: Express (EXPR, $3.57) was a top loser this week, declining -7.51%. Expect a Downtrend continuation
- 5/14/22 4:23 AM: Poshmark (POSH, $12.04) was a top weekly gainer, with a +7.6% jump
- 5/12/22 5:38 AM: Boot Barn Holdings (BOOT, $85.57) was a top loser this week, declining -13.28%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was -68.54%. For the same stocks of the group, the average monthly volume growth was -48.34% and the average quarterly volume growth was -55.9%
- 4/5/22 5:32 AM: The volume for Secoo Holding stock increased for one day, resulting in a record-breaking daily growth of 215% of the 65-Day Volume Moving Average
- 3/30/22 5:28 AM: The volume for Secoo Holding stock increased for a consecutive 5 days, with an average daily gain of 433%
- 3/29/22 5:12 AM: The volume for Secoo Holding stock increased for four consecutive days, resulting in a record-breaking daily growth of 493% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Latest blogs by Sarah Patel
Top Blogs
