Nordstrom Stock: A Deep Dive Into Analyst Perspectives (6 Ratings)

Nordstrom JWN underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $24.0, a high estimate of $24.00, and a low estimate of $24.00. Surpassing the previous average price target of $22.25, the current average has increased by 7.87%.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Nordstrom. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Nordstrom. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Nordstrom compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Nordstrom's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Nordstrom's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Nordstrom analyst ratings.

Unveiling the Story Behind Nordstrom

Nordstrom is a fashion retailer that operates about 93 department stores and 280 off-price Nordstrom Rack stores. The company also operates both full- and off-price e-commerce sites, two clearance stores, and six Local locations. Nordstrom's largest merchandise categories are women's apparel (27% of 2023 sales), shoes (26% of 2023 sales), men's apparel (15% of 2023 sales), and beauty (13% of 2023 sales). Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the eponymous family. They have partnered with Mexican retailer El Puerto de Liverpool to acquire the company.

Nordstrom: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Nordstrom's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2024, the company achieved a revenue growth rate of approximately 4.34%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Nordstrom's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.33%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Nordstrom's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.75%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Nordstrom's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.51%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Nordstrom's debt-to-equity ratio stands notably higher than the industry average, reaching 4.37. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.