By Donald Moenning
Every trading day, we search our database for a stock that, in our humble opinion, is in solid technical condition and features a chart indicating the stock is ready to move higher.
Our base level investment philosophy is based on the concept of “own the best and ignore the rest.” Thus, we focus our attention solely on the top ranked stocks in the strongest industry groups.
How Do We Find the “Top Rated Stocks?”
A question we are constantly asked is: How do we find these top-rated stocks? In short, we follow a disciplined three-step process.
Step 1: Identify the Top Sectors and Industry Groups
We first determine the market’s leadership by identifying the top performing sectors and industry groups. From 10 sectors and more than 100 Industry Groups, our proprietary ranking systems (which has been designed in conjunction with the nation’s leading independent research firm) identifies the top 5 sectors and the top 20 groups based on momentum, industry strength, and indicators that are specific to the industry being ranked.
Step 2: Isolate the Highest Rated Companies
From more than 2400 stocks, the system identifies the top 5% in terms of earnings strength, earnings momentum, company performance, and relative strength.
Step 3: Select the Strongest Stocks in the Top Industry Groups
We then merge the two rankings and select the top ranked companies that are in the top Industry Groups. This keeps us focused on the best performing stocks in the leading sectors of the market.
And then every weekend, we rerun the ratings and start all over again!
The Chart of the Day
The chart listed below has met all of our fundamental criteria and currently displays a solid technical “set up” for a buy. The stocks highlighted in our daily chart reports are definitely on our radar, and may even be in some of our portfolios (see disclosure for details). Just to be clear, we are by no means recommending you buy this stock. However, we believe it is important to identify positive technical set-ups when looking for stocks, thus we consider this report a valuable tool for stock-pickers.
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Nordstrom, Inc. is a fashion specialty retailer. The Company operates 262 United States stores located in 35 states as well as a robust e-commerce business through Nordstrom.com and HauteLook. The Company operates through two segments: Retail and Credit. The Retail segment includes approximately 117 ‘Nordstrom’ branded full-line stores and online store at Nordstrom.com, approximately 142 off-price ‘Nordstrom Rack’stores, one clearance store that operates under the name ‘Last Chance’ and other retail channels including its online private sale subsidiary ‘HauteLook’ and its two ‘Jeffrey’ boutiques. Credit segment includes its wholly owned federal savings bank, Nordstrom fsb, through which it provides a private label credit card, two Nordstrom VISA credit cards and a debit card.
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.
At the time of publication the editor and affiliated companies own the following positions: JWN
Note: Positions may be bought or sold while this publication is in circulation without notice.
Nordstrom Inc – Last 3 Months
Nordstrom Inc – Last 12 Months
Nordstrom Inc – Last 5 Years