Nordstrom (JWN, $37.95) beats Q3 expectations; raised full-year profit outlook
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.
Momentum Indicator for JWN turns positive, indicating new upward trend
JWN saw its Momentum Indicator move above the 0 level on May 17, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 99 similar instances where the indicator turned positive. In of the 99 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
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, of 32 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 May 10, 2023. 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 .
JWN moved above its 50-day moving average on June 01, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for JWN crossed bullishly above the 50-day moving average on May 31, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 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 294 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 155 cases where JWN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
JWN broke above its upper Bollinger Band on June 02, 2023. 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.
Fundamental Analysis (Ratings)
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: JWN's P/B Ratio (5.094) is slightly higher than the industry average of (2.219). JWN has a moderately high P/E Ratio (158.730) as compared to the industry average of (60.983). Projected Growth (PEG Ratio) (0.459) is also within normal values, averaging (2.112). Dividend Yield (0.044) settles around the average of (0.030) among similar stocks. P/S Ratio (0.186) is also within normal values, averaging (0.689).
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 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 84, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a retailer of apparel, shoes, cosmetics and accessories
Industry DepartmentStores
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| SIL | 27.53 | 0.04 | +0.15% |
| Global X Silver Miners ETF | |||
| ESEB | 16.52 | 0.02 | +0.14% |
| Xtrackers JPMorgan ESG EM Sovereign ETF | |||
| MFM | 5.06 | N/A | N/A |
| MFS Municipal Income Trust | |||
| FFTI | 20.58 | -0.01 | -0.05% |
| FormulaFolios Tactical Income ETF | |||
| SMHB | 5.02 | -0.08 | -1.57% |
| ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN | |||
JWN and
Correlation & Price change
A.I.dvisor indicates that over the last year, JWN has been closely correlated with M. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if JWN jumps, then M could also see price increases.
