Is Nordstrom Stock a Good Investment?

Nordstrom Investment Advice

  JWN
To provide specific investment advice or recommendations on Nordstrom stock, we recommend investors consider the following general factors when evaluating Nordstrom. This will help you to make an informed decision on whether to include Nordstrom in one of your diversified portfolios:
  • 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 Broadline 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
Strong Buy
Our advice module complements current analysts and expert consensus on Nordstrom. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure Nordstrom is not overpriced, please verify all Nordstrom fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Nordstrom has a price to earning of 8.37 X, we recommend you to check Nordstrom market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

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 44.0% of the company shares are held by company insiders. The book value of Nordstrom was currently reported as 5.99. The company has Price/Earnings To Growth (PEG) ratio of 0.32. Nordstrom last dividend was issued on the 3rd of December 2024. 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:
About 44.0% of the company shares are held by company insiders
Latest headline from nypost.com: Presidents Day furniture sales are up to 70 percent off at Wayfair, more

Nordstrom Quarterly Good Will

249 Million

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
Earnings surprises can significantly impact Nordstrom's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Nordstrom's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2001-02-22
2001-01-310.090.10.0111 
2002-08-14
2002-07-310.180.20.0211 
2001-11-15
2001-10-310.020.040.02100 
2001-05-11
2001-04-300.070.090.0228 
2004-05-20
2004-04-300.210.240.0314 
2003-05-19
2003-04-300.070.10.0342 
1998-08-12
1998-07-310.210.240.0314 
2022-05-24
2022-04-30-0.05-0.010.0480 

Nordstrom Target Price Consensus

Nordstrom target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Nordstrom's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   15  Hold
Most Nordstrom analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Nordstrom stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Nordstrom, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Nordstrom Target Price Projection

Nordstrom's current and average target prices are 24.33 and 24.07, respectively. The current price of Nordstrom is the price at which Nordstrom is currently trading. On the other hand, Nordstrom's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Nordstrom Market Quote on 16th of February 2025

Low Price24.3Odds
High Price24.34Odds

24.33

Target Price

Analyst Consensus On Nordstrom Target Price

Low Estimate21.91Odds
High Estimate26.72Odds

24.075

Historical Lowest Forecast  21.91 Target Price  24.08 Highest Forecast  26.72
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Nordstrom and the information provided on this page.

Nordstrom Analyst Ratings

Nordstrom's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Nordstrom stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Nordstrom's financials, market performance, and future outlook by experienced professionals. Nordstrom's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Nordstrom's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Nordstrom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Nordstrom backward and forwards among themselves. Nordstrom's institutional investor refers to the entity that pools money to purchase Nordstrom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Charles Schwab Investment Management Inc2024-12-31
1.7 M
Amvescap Plc.2024-09-30
1.7 M
Marshall Wace Asset Management Ltd2024-09-30
1.7 M
Geode Capital Management, Llc2024-09-30
1.6 M
Millennium Management Llc2024-09-30
1.5 M
Lsv Asset Management2024-09-30
1.4 M
Bank Of New York Mellon Corp2024-12-31
1.3 M
Two Sigma Investments Llc2024-09-30
1.3 M
Verition Fund Managegment, Llc Usd2024-09-30
1.2 M
El Puerto De Liverpool Sab De Cv2024-12-31
15.8 M
Vanguard Group Inc2024-09-30
13.4 M
Note, although Nordstrom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Nordstrom's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 4.02 B.

Market Cap

2.18 Billion

Nordstrom's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.08  0.07 
Return On Capital Employed 0.21  0.11 
Return On Assets 0.08  0.07 
Return On Equity 0.30  0.15 
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 0.03 %, which entails that for every 100 dollars of revenue, it generated $0.03 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.

Evaluate Nordstrom's management efficiency

Nordstrom has Return on Asset of 0.0385 % which means that on every $100 spent on assets, it made $0.0385 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3054 %, implying that it generated $0.3054 on every 100 dollars invested. Nordstrom's management efficiency ratios could be used to measure how well Nordstrom manages its routine affairs as well as how well it operates its assets and liabilities. As of the 16th of February 2025, Return On Tangible Assets is likely to drop to 0.07. In addition to that, Return On Capital Employed is likely to drop to 0.11. At this time, Nordstrom's Non Current Assets Total are very stable compared to the past year. As of the 16th of February 2025, Non Currrent Assets Other is likely to grow to about 631.5 M, while Total Assets are likely to drop about 5.6 B.
Last ReportedProjected for Next Year
Book Value Per Share 12.84  13.48 
Tangible Book Value Per Share 10.55  11.08 
Enterprise Value Over EBITDA 9.16  8.98 
Price Book Value Ratio 5.93  3.87 
Enterprise Value Multiple 9.16  8.98 
Price Fair Value 5.93  3.87 
Enterprise Value3.3 B2.6 B
Effective management at Nordstrom has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Dividend Yield
0.0312
Forward Dividend Yield
0.0312
Forward Dividend Rate
0.76
Beta
2.516

Basic technical analysis of Nordstrom Stock

As of the 16th of February 2025, Nordstrom secures the Mean Deviation of 0.9873, downside deviation of 1.8, and Risk Adjusted Performance of 0.0625. 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.

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.

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.

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 Corporate Filings

31st of January 2025
Other Reports
ViewVerify
8K
24th of January 2025
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F3
31st of December 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
26th of December 2024
Other Reports
ViewVerify
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 Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Nordstrom can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Nordstrom Historical Investor Sentiment

Investor biases related to Nordstrom's public news can be used to forecast risks associated with an investment in Nordstrom. The trend in average sentiment can be used to explain how an investor holding Nordstrom can time the market purely based on public headlines and social activities around Nordstrom. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Nordstrom's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Nordstrom and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Nordstrom news discussions. The higher the estimate score, the more favorable the investor's outlook on Nordstrom.

Nordstrom Corporate Directors

Kirsten GreenIndependent DirectorProfile
Shellye ArchambeauIndependent DirectorProfile
James DonaldIndependent DirectorProfile
Brad SmithIndependent DirectorProfile
When determining whether Nordstrom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Nordstrom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nordstrom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nordstrom Stock:
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Broadline 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.
Quarterly Earnings Growth
(0.34)
Dividend Share
0.76
Earnings Share
1.58
Revenue Per Share
92.329
Quarterly Revenue Growth
0.043
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.