Nordstrom Inc. (NYSE: JWN) witnessed its stock price ascend for the second straight day, closing at $15.14 on Wednesday with a notable 5.73% increase. The retailer’s performance stood out in a generally upbeat stock market, where the S&P 500 Index and the Dow Jones Industrial Average experienced modest gains, rising by 0.16% and 0.47%, respectively.
In the broader retail landscape, Nordstrom’s competitors showed mixed results. E-commerce giant Amazon.com Inc. (NASDAQ: AMZN) saw its shares dip by 1.78%, closing at $143.20. In contrast, Walmart Inc. (NYSE:NYSE: WMT) enjoyed a positive shift, with its stock advancing by 1.27% to $169.78. Meanwhile, Target Corp. (NYSE:NYSE: TGT) experienced a significant spike, with its shares soaring by 17.75% to end at $130.46.
The trading volume for Nordstrom on Wednesday reached 9.2 million shares, which is above its 50-day average trading volume, reflecting heightened investor interest in the company.
Looking back earlier in the year to February 3rd, Nordstrom had reached its 52-week peak at $27.15 per share, indicating that the current price is still trailing by $12.01 from that high point.
The stock movement for Nordstrom comes amid a dynamic period for retail stocks, with investors closely monitoring performance as an indicator of consumer behavior and economic trends.
InvestingPro Insights
InvestingPro data shows that Nordstrom Inc. has a market cap of 2450M USD and a P/E Ratio of 75.93. This high earnings multiple indicates that the company’s shares are trading at a price significantly higher than its earnings per share. But it’s important to consider that analysts predict the company will be profitable this year, which corresponds with the InvestingPro Tip that strong earnings should allow management to continue dividend payments. In fact, as of Q2 2024, the company’s dividend yield was 5.02%.
Another noteworthy InvestingPro Tip is that Nordstrom’s stock price movements are quite volatile. This is evident in the company’s price total return over the past three months, which was -21.44%, but it had a significant return over the last week of 12.48%. Despite the volatility, the company’s fair value according to InvestingPro is 20.42 USD, higher than the current closing price of $15.14.
It’s also worth mentioning that the company’s revenue has been declining at an accelerating rate of -6.14% over the last twelve months as of Q2 2024. This could be a potential concern for investors. For more in-depth analysis and tips, consider exploring the InvestingPro platform, which offers a total of 10 additional tips for Nordstrom Inc.
