The Case for and Against Nordstrom, Inc. (JWN)

Nordstrom, Inc. (JWN) is an interesting player in the Services space, with a focus on Apparel Stores. The stock has been active on the tape, currently trading at $47.38, down from yesterday’s close by -0.69%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Nordstrom, Inc. (JWN) currently trades with a market capitalization of $7.95 Billion. That value represents a market adjusting for revenues that have been growing by 2.46 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $616 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.22 on a per share basis this quarter. Perhaps, that suggests something about why 11.28% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Nordstrom, Inc. recorded a 52-week high of $50.32. It is now trading 2.94% off that level. The stock is trading $43.06 its 50-day moving average by -4.32%. The stock carved out a 52-week low down at $37.79.

In recent action, Nordstrom, Inc. (JWN) has made a move of +4.25% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 16.66% with $114.25 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of JWN.

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