NEW YORK (TheStreet) -- TheStreet's Jim Cramer encourages investors to embrace "stealth tech," or the idea that technology is not simply limited to personal computers and mobile devices. There are several companies that are involved with technology that one might not expect.
Under Armour (UA - Get Report) is one such stock that has been red hot lately. Cramer recently spoke to Blake Nordstrom, the president of Nordstrom (JWN - Get Report). He learned that the apparel retailer is spending $1 billion on technology to keep up with Amazon (AMZN - Get Report). Cramer likes companies that invest in technology because this method accelerates growth and costs less in the long run.
Cramer also thinks Nordstrom has not received enough credit for its website, which is all tech-oriented.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- NORDSTROM INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NORDSTROM INC increased its bottom line by earning $3.72 versus $3.56 in the prior year. This year, the market expects an improvement in earnings ($3.85 versus $3.72).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- 42.14% is the gross profit margin for NORDSTROM INC which we consider to be strong. Regardless of JWN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JWN's net profit margin of 7.22% compares favorably to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Multiline Retail industry and the overall market, NORDSTROM INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: JWN Ratings Report