Nordstrom (JWN) Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nordstrom as such a stock due to the following factors:
- JWN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $116.8 million.
- JWN has traded 168,883 shares today.
- JWN is trading at 2.13 times the normal volume for the stock at this time of day.
- JWN is trading at a new low 3.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on JWN:
Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for men, women, and children in the United States and Canada. It operates through two segments, Retail and Credit. The stock currently has a dividend yield of 2.2%. JWN has a PE ratio of 18. Currently there are 8 analysts that rate Nordstrom a buy, 2 analysts rate it a sell, and 10 rate it a hold.
The average volume for Nordstrom has been 1.7 million shares per day over the past 30 days. Nordstrom has a market cap of $12.6 billion and is part of the services sector and retail industry. The stock has a beta of 0.73 and a short float of 6% with 4.55 days to cover. Shares are down 17.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates Nordstrom as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- JWN's revenue growth has slightly outpaced the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $207.00 million or 36.18% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.07%.
- NORDSTROM INC has improved earnings per share by 14.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, NORDSTROM INC's EPS of $3.72 remained unchanged from the prior years' EPS of $3.72. This year, the market expects an improvement in earnings ($3.78 versus $3.72).
- 40.91% 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 5.70% compares favorably to the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Multiline Retail industry and the overall market, NORDSTROM INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full Nordstrom Ratings Report.
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