Nordstrom Inc. posted stronger-than-expected third quarter earnings, and also boosted its full-year profit guidance.
For the three months ending on November 2, earnings came in at 81 cents per share, surpassing the Street consensus expectation of 64 cents per share.
Total revenues of 3.672 billion exceeded analysts' estimates, although falling - 2% from the year-ago quarter.
Co-President Erik Nordstrom emphasized on the Off Price business’ positive sales growth and increased profitability through strong inventory and expense execution as some of the strengths in the quarter.
Digital sales rose +7% from the year-ago quarter; the segment now accounts for more than a third of the company's total revenues. The growth helped to cushion a -4.1% decline in full price sales.
"We're encouraged by the momentum in our Full Price and Off Price businesses as we execute our holiday strategy to establish Nordstrom as a gifting destination for our customers", Nordstrom added.
For the full fiscal year 2020, the company raised the lower end of its prior guidance by 5 cents to a range of $3.30 to $3.50 per share. It also increased its EBIT margin forecast by adding 10 basis points. But it re-iterated its forecast of a -2% decline in net sales.
JWN moved below its 50-day moving average on April 25, 2024 date and that indicates a change from an upward trend to a downward trend. In of 54 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 24, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on JWN as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for JWN crossed bearishly below the 50-day moving average on April 15, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 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 .
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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where JWN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for JWN just turned positive on April 23, 2024. Looking at past instances where JWN's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JWN advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 (3.658) is normal, around the industry mean (2.313). P/E Ratio (23.171) is within average values for comparable stocks, (26.970). Projected Growth (PEG Ratio) (0.271) is also within normal values, averaging (1.450). Dividend Yield (0.040) settles around the average of (0.030) among similar stocks. P/S Ratio (0.211) is also within normal values, averaging (0.483).
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 SMR rating for this company is (best 1 - 100 worst), indicating 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 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 90, 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