Post-Market Laggard: Nordstrom (JWN)
Trade-Ideas LLC identified
(
) as a post-market laggard 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 $167.6 million.
- JWN is down 12.5% today from today's close.
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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 3%. JWN has a PE ratio of 16. Currently there are 7 analysts that rate Nordstrom a buy, 4 analysts rate it a sell, and 7 rate it a hold.
The average volume for Nordstrom has been 3.4 million shares per day over the past 30 days. Nordstrom has a market cap of $8.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.90 and a short float of 21.9% with 6.32 days to cover. Shares are down 8.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Nordstrom as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 3.7%. 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.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
- Net operating cash flow has remained constant at $706.00 million with no significant change when compared to the same quarter last year. In addition, NORDSTROM INC has modestly surpassed the industry average cash flow growth rate of -6.49%.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Multiline Retail industry average. The net income has significantly decreased by 29.4% when compared to the same quarter one year ago, falling from $255.00 million to $180.00 million.
- The debt-to-equity ratio is very high at 3.22 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.27, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full Nordstrom Ratings Report.
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