Yahoo Finance Can Nordstrom’s Stock Price Benefit from Its 4Q15 Results?
Growth Investments Could Weigh on Nordstrom's 4Q15 Earnings
Stock fell since the previous results
Nordstrom (JWN) is scheduled to report its 4Q15 results on February 18, 2016. The company’s fiscal 4Q15 ended on January 30, 2016. As of February 10, Nordstrom is trading at a stock price of $49.19—down 22.5% since the announcement of its 3Q15 results in November 2015. Nordstrom missed analysts’ sales and earnings estimates in 3Q15.
YTD movement
Nordstrom’s stock price fell by 1.9% since the beginning of 2016. As of February 10, the Consumer Discretionary Select Sector SPDR Fund (XLY) and the S&P 500 Index fell by 10.7% and 8%, respectively, since the beginning of the year. Kohl’s (KSS) stock price fell by 19.1% on a YTD (year-to-date) basis. It was mainly impacted by lower-than-expected 4Q15 sales disclosed on February 4. The stock prices of Macy’s (M) and Dillard’s (DDS) rose by 8.4% and 3.1%, respectively, on a YTD basis. Macy’s stock is benefiting from activist investors’ increased interest.
Analysts’ recommendation
As of February 10, 2016, 18 out of 31 analysts have a “hold” recommendation for Nordstrom, ten analysts have “buy” recommendation, and three analysts have a “sell” recommendation. The consensus “hold” recommendation for Nordstrom is supported by its higher sales growth prospects compared to other department stores like Macy’s and Kohl’s. Nordstrom has a strong business model. It has a presence in high-end full-line stores and off-price Rack stores. It also has an online channel. Nordstrom accounts for 0.03% of the iShares Russell 3000 ETF (IWV) and 0.3% of XLY. We’ll discuss Nordstrom’s sales expectations in the next part of this series.
This earnings preview series will also discuss Nordstrom’s 4Q15 earnings expectations and factors that could impact the company’s margins. We’ll also look at the company’s valuation before its 4Q15 results.
Browse this series on Market Realist:
