Nordstrom Inc. (JWN): Today's Featured Retail Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Nordstrom ( JWN) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.2%. By the end of trading, Nordstrom rose $1.32 (2.2%) to $60.49 on heavy volume. Throughout the day, 2,838,882 shares of Nordstrom exchanged hands as compared to its average daily volume of 1,725,500 shares. The stock ranged in a price between $59.03-$60.56 after having opened the day at $59.19 as compared to the previous trading day's close of $59.17. Other companies within the Retail industry that increased today were: ALCO Stores ( ALCS), up 13.5%, Acorn International ( ATV), up 10.9%, Restoration Hardware Holdings ( RH), up 6.8% and dELiA*s ( DLIA), up 5.3%.
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Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It operates in two segments, Retail and Credit. The Retail segment offers a selection of brand name and private label merchandise. Nordstrom has a market cap of $11.4 billion and is part of the services sector. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 9.3% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Nordstrom a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Nordstrom as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Jos A Bank Clothiers ( JOSB), down 7.2%, Stage Stores ( SSI), down 4.9%, Citi Trends ( CTRN), down 4.5% and Men's Wearhouse ( MW), down 2.9% , were all laggards within the retail industry with Gap ( GPS) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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