Is Nordstrom Stock a Good Investment?
Nordstrom Investment Advice | JWN |
- Examine Nordstrom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Nordstrom's leadership team and their track record. Good management can help Nordstrom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Retail space and any emerging trends that could impact Nordstrom's business and its evolving consumer preferences.
- Compare Nordstrom's performance and market position to its competitors. Analyze how Nordstrom is positioned in terms of product offerings, innovation, and market share.
- Check if Nordstrom pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Nordstrom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Nordstrom stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Nordstrom is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Nordstrom Stock
Researching Nordstrom's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 45.0% of the company shares are held by company insiders. The book value of Nordstrom was currently reported as 6.9. The company has Price/Earnings To Growth (PEG) ratio of 0.31. Nordstrom last dividend was issued on the 11th of March 2025. The entity had 2:1 split on the 1st of July 2005.
To determine if Nordstrom is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Nordstrom's research are outlined below:
| Nordstrom generated a negative expected return over the last 90 days | |
| About 45.0% of the company shares are held by company insiders |
Nordstrom uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Nordstrom. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Nordstrom's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 29th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 7th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Nordstrom's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 4 B.Nordstrom's profitablity analysis
The company has Net Profit Margin of 0.02 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.06 %, which entails that for every 100 dollars of revenue, it generated $0.06 of operating income.Determining Nordstrom's profitability involves analyzing its financial statements and using various financial metrics to determine if Nordstrom is a good buy. For example, gross profit margin measures Nordstrom's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Nordstrom's profitability and make more informed investment decisions.
Basic technical analysis of Nordstrom Stock
As of the 20th of March, Nordstrom secures the Standard Deviation of 0.2708, risk adjusted performance of (0.03), and Mean Deviation of 0.1631. Nordstrom technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices.Nordstrom's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Nordstrom insiders, such as employees or executives, is commonly permitted as long as it does not rely on Nordstrom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Nordstrom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ann Steines few days ago Acquisition by Ann Steines of 32786 shares of Nordstrom subject to Rule 16b-3 | ||
Nordstrom Molly over two months ago Insider Trading | ||
Bradley Tilden over three months ago Acquisition by Bradley Tilden of 15862 shares of Nordstrom at 23.01 subject to Rule 16b-3 | ||
Erik Nordstrom over six months ago Acquisition by Erik Nordstrom of 1000 shares of Nordstrom at 18.243 subject to Rule 16b-3 | ||
Worzel Ken over a year ago Acquisition or disposition of Nordstrom securities by Worzel Ken | ||
Worzel Ken over a year ago Nordstrom exotic insider transaction detected |
Nordstrom's Outstanding Corporate Bonds
Nordstrom issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Nordstrom uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Nordstrom bonds can be classified according to their maturity, which is the date when Nordstrom has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| NORDSTROM INC 695 Corp BondUS655664AH33 | View | |
| NORDSTROM INC 5 Corp BondUS655664AR15 | View | |
| NORDSTROM INC 7 Corp BondUS655664AL45 | View | |
| US655664AY65 Corp BondUS655664AY65 | View | |
| NORDSTROM INC 4375 Corp BondUS655664AT70 | View | |
| NORDSTROM INC 4 Corp BondUS655664AS97 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View |
Understand Nordstrom's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Nordstrom's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | 0.447 | |||
| Mean Deviation | 0.1631 | |||
| Coefficient Of Variation | (8,829) | |||
| Standard Deviation | 0.2708 | |||
| Variance | 0.0733 | |||
| Information Ratio | 0.2283 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | 0.0098 | |||
| Treynor Ratio | 0.437 | |||
| Maximum Drawdown | 1.48 | |||
| Value At Risk | (0.33) | |||
| Potential Upside | 0.4155 | |||
| Skewness | (2.47) | |||
| Kurtosis | 14.63 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | 0.447 | |||
| Mean Deviation | 0.1631 | |||
| Coefficient Of Variation | (8,829) | |||
| Standard Deviation | 0.2708 | |||
| Variance | 0.0733 | |||
| Information Ratio | 0.2283 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | 0.0098 | |||
| Treynor Ratio | 0.437 | |||
| Maximum Drawdown | 1.48 | |||
| Value At Risk | (0.33) | |||
| Potential Upside | 0.4155 | |||
| Skewness | (2.47) | |||
| Kurtosis | 14.63 |
Consider Nordstrom's intraday indicators
Nordstrom intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Nordstrom stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Nordstrom time-series forecasting models is one of many Nordstrom's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Nordstrom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Nordstrom Stock media impact
Far too much social signal, news, headlines, and media speculation about Nordstrom that are available to investors today. That information is available publicly through Nordstrom media outlets and privately through word of mouth or via Nordstrom internal channels. However, regardless of the origin, that massive amount of Nordstrom data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Nordstrom news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Nordstrom relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Nordstrom's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Nordstrom alpha.
Nordstrom Corporate Directors
| Kirsten Green | Independent Director | Profile | |
| Shellye Archambeau | Independent Director | Profile | |
| James Donald | Independent Director | Profile | |
| Brad Smith | Independent Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Nordstrom. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. To learn how to invest in Nordstrom Stock, please use our How to Invest in Nordstrom guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nordstrom. If investors know Nordstrom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nordstrom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Nordstrom is measured differently than its book value, which is the value of Nordstrom that is recorded on the company's balance sheet. Investors also form their own opinion of Nordstrom's value that differs from its market value or its book value, called intrinsic value, which is Nordstrom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nordstrom's market value can be influenced by many factors that don't directly affect Nordstrom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Nordstrom's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Nordstrom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nordstrom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.