Analysts rate Nordstrom Inc. (TWTR:NYE) with an Underperform rating and a $25 target

STA Research
by: STA Research
Nordstrom Inc

Analysts rate Nordstrom Inc. (JWN:NYE) with a consensus Underperform rating with an average 12-months Nordstrom stock price target of $25.06 per share.

Morgan Stanley recently  rated Nordstrom Inc. with a Underweight and maintained the Nordstrom stock price target at $19.

Based on the Nordstrom Inc. stock forecast from 12 analysts, the average analyst Nordstrom stock price target is USD 25.06 over the next 12 months. Nordstrom Inc’s average analyst rating is Underperform. Stock Target Advisor’s own stock analysis of JWN stock forecast is Bearish, which is based on 4 positive signals and 10 negative signals. At the last closing, Nordstrom stock price was USD 23.20Nordstrom stock price has changed by -3.62% over the past week, -0.34% over the past month and -38.64% over the last year.

About Nordstrom Inc. (JWN:NYE):

Nordstrom, Inc., a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. As of December 31, 2021, the company operated 94 Nordstrom stores and 240 Nordstrom Rack stores in the United States; 2 clearance stores; and 7 Nordstrom Local service hubs, as well as 6 Nordstrom stores and 7 Nordstrom Rack stores in Canada. Nordstrom, Inc. was founded in 1901 and is headquartered in Seattle, Washington.

What we like:

Superior return on equity

Nordstrom stock history shows that the company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

JWN stock forecast shows that the stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median total returns

The company has under-performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

JWN stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

Nordstrom stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

Nordstrom stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the JWN stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

JWN stock forecast has shown below median earnings growth in the previous 5 years compared to its sector

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