(JWN) Nordstrom, Inc. – Strong Momentum and Bullish Forecasts

October 28th, 2009

Nordstrom, Inc. (JWN) has more than doubled the market’s return over the past year. During the last 3 months, JWN saw even more bullish trading as shares nearly tripled the performance of the major averages. Analysts are also bullish, lifting the full-year Zacks Consensus Estimate from $1.57 per share to $1.65 over the past month.

Company Description

Nordstrom, a fashion specialty retailer, operates 179 stores located in 28 states. The company was founded in 1901 as a shoe store in Seattle. Today, Nordstrom runs 112 full-line stores, 64 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance store. In addition, Nordstrom serves customers through its online presence at http://www.nordstrom.com and through its catalogs.

Strong Momentum and Bullish Forecasts

The company has more than doubled the market’s return over the past year. During the last 3 months, JWN saw even more bullish trading as shares nearly tripled the performance of the major averages.

Analysts are also bullish, lifting the full-year Zacks Consensus Estimate from $1.57 per share to $1.65 over the past month. The most accurate projection is more bullish at $1.68.

For the following year, the Zacks Consensus Estimate of $1.95 per share was increased from last month’s $1.81. The most accurate estimate is even higher at $1.99.

Second-quarter forecasts of 34 cents per share climbed from 29 cents over the past month, which included a 1-cent bump in the last week.

Results for the third quarter are scheduled for release on November 12.

September Sales

Nordstrom recently announced that September same-store sales dipped by 2.4% year-over-year. Total sales of $720 million were up 0.3% from last year.

Strong Fundamentals

The company boasts a return on equity (ROE) of 25%, squashing the industry average of 7%. Nordstrom’s net profit margin of 4% tops the industry average of 1.4%. The Growth and Income pick pays an industry-leading dividend yield of 2%.

Zacks Investment Research
View original at: Zacks.com News Feed

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Read more on Nordstrom at Wikinvest


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