Nordstrom Stock Price and Research (NYSE: JWN)
Nordstrom (NYSE: JWN) is a $9 billion company today. Investors that bought shares one year ago are sitting on a 0.43% total return. That's below the S&P 500's return of 15.7%.
Nordstrom stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: Nordstrom reported a recent EPS growth rate of -23.08%. That's below the multiline retail industry average of 40.76%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the multiline retail industry is 29.3. And Nordstrom's ratio comes in at 17.18. It's trading at a better value than many of its competitors.
✗ Debt-to-Equity : The debt-to-equity ratio for Nordstrom stock is 280.14%. That's above the multiline retail industry average of 81.91%. That's not a good sign.
✗ Free Cash Flow per Share Growth : Nordstrom has decreased its FCF per share over the last year relative to its competitors. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins : The profit margin of Nordstrom comes in at 3.21% today. And generally, the higher, the better. We also like to see this ratio above competitors. Nordstrom's profit margin is below the multiline retail average of 7.92%. So that's a negative indicator for investors.
✓ Return on Equity : Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Nordstrom is 47.43% and that's above its industry average ROE of 18.64%.
Nordstrom stock passes two of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold with Caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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