Nordstrom (NYSE:JWN) Raised to “Buy” at Zacks Investment Research

Nordstrom (NYSE:JWNGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday, Zacks.com reports. The firm currently has a $26.00 price objective on the specialty retailer’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 12.80% from the stock’s previous close.

According to Zacks, “Shares of Nordstrom have outperformed the industry in the past three months, courtesy of the impressive fourth-quarter fiscal 2021 results. Both top and bottom lines surpassed the Zacks Consensus Estimate and grew year over year. Results gained from solid demand for apparel and footwear, robust digital growth, compelling merchandise, and lower markdowns. Higher merchandise margins, as well as lower buying and occupancy costs, boosted margins, which, in turn, led to bottom-line growth. Improved digital traffic at Nordstrom and Nordstrom Rack aided digital sales. Management issued the fiscal 2022 view, which seems encouraging. However, the cpompany is still grappling with the adverse comparisons with fourth-quarter fiscal 2019. Higher freight costs and ongoing supply-chain disruptions remain concerns.”

JWN has been the topic of a number of other reports. BMO Capital Markets lifted their price target on shares of Nordstrom from $23.00 to $30.00 and gave the stock a “market perform” rating in a research report on Wednesday, March 2nd. Telsey Advisory Group boosted their price objective on shares of Nordstrom from $27.00 to $30.00 and gave the company a “market perform” rating in a research report on Wednesday, March 2nd. Citigroup boosted their price objective on shares of Nordstrom from $25.00 to $27.00 in a research report on Wednesday, March 2nd. KeyCorp cut their price objective on shares of Nordstrom from $45.00 to $40.00 and set an “overweight” rating on the stock in a research report on Thursday, January 20th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Nordstrom from $24.00 to $22.00 in a research note on Monday. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $29.07.

Shares of NYSE JWN traded down $1.77 during midday trading on Wednesday, reaching $23.05. 314,376 shares of the stock were exchanged, compared to its average volume of 4,262,823. The business has a 50-day simple moving average of $26.47 and a two-hundred day simple moving average of $24.87. The company has a market capitalization of $3.67 billion, a price-to-earnings ratio of 21.75, a P/E/G ratio of 1.21 and a beta of 2.24. Nordstrom has a 12 month low of $18.65 and a 12 month high of $43.80. The company has a debt-to-equity ratio of 4.91, a current ratio of 0.96 and a quick ratio of 0.27.

Nordstrom (NYSE:JWNGet Rating) last announced its quarterly earnings results on Tuesday, March 1st. The specialty retailer reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $1.04 by $0.19. The company had revenue of $4.38 billion for the quarter, compared to analysts’ expectations of $4.36 billion. Nordstrom had a net margin of 1.20% and a return on equity of 70.74%. The business’s quarterly revenue was up 23.4% compared to the same quarter last year. During the same period last year, the firm posted $0.21 earnings per share. Equities research analysts expect that Nordstrom will post 3.3 earnings per share for the current fiscal year.

In related news, CFO Anne L. Bramman sold 13,334 shares of the stock in a transaction on Monday, April 18th. The shares were sold at an average price of $28.74, for a total transaction of $383,219.16. Following the transaction, the chief financial officer now directly owns 120,137 shares of the company’s stock, valued at $3,452,737.38. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 5.45% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Walleye Capital LLC bought a new position in Nordstrom during the first quarter worth $729,000. Advisors Asset Management Inc. lifted its stake in shares of Nordstrom by 4.4% in the first quarter. Advisors Asset Management Inc. now owns 25,175 shares of the specialty retailer’s stock valued at $682,000 after buying an additional 1,057 shares in the last quarter. Point72 Hong Kong Ltd lifted its stake in shares of Nordstrom by 88.7% in the first quarter. Point72 Hong Kong Ltd now owns 47,317 shares of the specialty retailer’s stock valued at $1,283,000 after buying an additional 22,237 shares in the last quarter. Quantamental Technologies LLC bought a new position in shares of Nordstrom in the first quarter valued at $278,000. Finally, Delphia USA Inc. lifted its stake in shares of Nordstrom by 78.8% in the first quarter. Delphia USA Inc. now owns 23,973 shares of the specialty retailer’s stock valued at $650,000 after buying an additional 10,566 shares in the last quarter. 57.27% of the stock is currently owned by institutional investors and hedge funds.

Nordstrom Company Profile (Get Rating)

Nordstrom, Inc, a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. It offers a range of brand name and private label merchandise through various channels, such as Nordstrom branded stores and online at Nordstrom.com; TrunkClub.com; Nordstrom.ca; Nordstrom stores; Nordstrom Rack stores; Nordstrom Locals; Nordstromrack.com and HauteLook; clearance stores under the Last Chance name; Trunk Club clubhouses; and Jeffrey boutiques.

Read More

Get a free copy of the Zacks research report on Nordstrom (JWN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Nordstrom (NYSE:JWN)

Receive News & Ratings for Nordstrom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nordstrom and related companies with MarketBeat.com's FREE daily email newsletter.