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Nordstrom, Inc. (JWN) Stock Guide

September 18, 2020
50
Bull Case
  • Company’s profitability is improving
  • Forward P/E ratio low relative to industry peers
  • Average analyst stock price above current stock price
  • Cash/Debt ratio is higher than the industry and sector averages
Bear Case
  • Revenue growth lower than the industry and sector averages
  • Forward P/B ratio high relative to industry peers
  • High short share of float
  • High short interest

Before we start: if you're looking for JWN stock price, you can quickly find it out by visiting Finny and typing "JWN quote". If you're looking for a quick scoop on JWN stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "JWN". You'll get all this info in one place. Or you can just type "JWN news" to get the latest stock news.

Looking to buy or sell Nordstrom, Inc. (JWN)? Interested in getting the full scoop on JWN, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this JWN stock guide, we'll address key questions about JWN, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are JWN earnings?
2. What is JWN stock forecast (i.e., prediction)?
3. JWN buy or sell? What is JWN Finny Score?
4. What are the reasons to buy JWN? Why should I buy JWN stock?
5. What are the reasons to sell JWN? Why should I sell JWN stock?
6. What are JWN key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are JWN earnings?

JWN trailing 12-month earnings per share (EPS) is -$2.93.

Analyst Predictions

2. What is JWN stock forecast (i.e., prediction)?

Based on JWN analyst price targets, JWN stock forecast is $18.17 (for a year from now). That means the average analyst price target for JWN stock is $18.17. The prediction is based on 26 analyst estimates.

The low price target for JWN is $11.00, while the high price target is $30.00.

JWN analyst rating is Hold.

Analysis

3. JWN buy or sell? What is JWN Finny Score?

Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell JWN, resulting in Finny Score of 50.

4. What are the reasons to buy JWN? Why should I buy JWN stock?

Here are the reasons to buy JWN stock:

  • We see room for Nordstrom Rack to increase its store base from 215 in 2016 to almost 300 by 2021.
  • Although we view the full-line business as more mature in the U.S., we think additional upside can be attained through geographic expansion (Canada) and new product lines (Madewell, TopShop).
  • E-commerce investments yield a high-growth channel of distribution.
  • JWN profitability is improving. The YoY profit margin change was 0.42 percentage points. See JWN profitability chart.
  • JWN forward P/E ratio is 9.92, which is low compared to its industry peers’ P/E ratios. See JWN forward P/E ratio chart.
  • JWN average analyst price target ($18.17) is above its current price ($14.94). See JWN price target chart.
  • JWN cash to debt ratio is 0.17, higher than the average industry (0.07) and sector (0.13) cash to debt ratio. See JWN cash to debt chart.

5. What are the reasons to sell JWN? Why should I sell JWN stock?

Let's look at the reasons to sell JWN stock (i.e., the bear case):

  • Nordstrom has been scaling down its investment cycle, but any further investments could dilute ROICs.
  • The general department-store space continues to lose market share, further limiting Nordstrom’s market size. The off-price channel is becoming more competitive.
  • Additional growth of Nordstrom Rack could hurt the full-price business by degrading the brand or cannibalizing sales.
  • JWN quarterly revenue growth was -51.90%, lower than the industry and sector average revenue growth (0.38% and 0.78%, respectively). See JWN revenue growth chart.
  • JWN Price/Book ratio is 13.70, which is high compared to its industry peers’ P/B ratios. See JWN forward Price/Book ratio chart.
  • JWN short share of float is 33.06%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See JWN short share of float chart.
  • JWN short interest (days to cover the shorts) ratio is 4.75. The stock garners more short interest than the average industry, sector or S&P 500 stock. See JWN short interest ratio chart.

Key Stats

6. What are JWN key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for JWN:

Metrics JWN
Price $14.33
Average Price Target / Upside $18.06 / 26.03%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Department Stores
Sector Consumer Cyclical
Number of Employees 72,500
Market Cap $2.08B
Forward P/E Ratio 8.93
Price/Book Ratio 0.17
Revenue (TTM) $12.19B
YoY Quarterly Revenue Growth -51.90%
Profit Margin -3.75%

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