Nordstrom (JWN) Stock Climbing With Software Firm Buy

Nordstrom (JWN) announced this morning that it is deepening its partnership with cloud-based software firm DS Co.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Nordstrom (JWN) - Get Report  stock is gaining 1.97% to $39.92 this morning after the company announced it was purchasing a minority stake in DS Co., a supply-chain software firm.

DS Co., based in Lehi, UT, provides cloud-based services to retailers to allow purchases made on a company site to be routed directly to the product's supplier for immediate shipment to the consumer. This method is called "drop shipping."

The partnership will allow Nordstrom to adapt to a growing number of online orders and the retailer will be able to cut costs by holding less inventory.

Retail companies like Nordstrom are under pressure from online giant Amazon.com (AMZN) as each struggle to carve out a space in the online shopping market.

The company's finance chief, Michael Koppel, said that they are implementing "a number of initiatives to increase efficiencies across our supply chain and marketing functions," the Wall Street Journal reports.

Nordstrom is a Seattle-based fashion retailer.

Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, TheStreet Ratings also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

You can view the full analysis from the report here: JWN

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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