Guggenheim analyst Robert Drbul maintained a Hold rating on Nordstrom Inc (JWN) today. The company’s shares opened today at $37.85, close to its 52-week low of $36.37.
Drbul commented:
“We remain NEUTRAL and lower our estimates to reflect today’s result and updated outlook. Total 1Q sales of $3.35bn (-3.5% YoY) came in below our $3.46bn estimate (-0.2%). We expect 1Q’s top-line trend to persist in 2Q, as it should take some time to adjust the merchandise assortment, particularly in women’s apparel, which was noted by management as one of the more challenging segments in 1Q. Beauty was also called out as weak and promotional. Digital marketing spend was reduced as investment was directed to the ‘Nordy Club’ rollout, which experienced execution mishaps. Nordstrom has since increased digital marketing to drive sales and traffic while loyalty challenges are being worked through. Digital overall slowed to 7% growth from +mid-teens growth in 2018. Full-price led the declines overall in 1Q, with sales down 5.1%, while off-price sales were down 0.6%.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 10.1% and a 65.8% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Ralph Lauren Corp.
Nordstrom Inc has an analyst consensus of Hold, with a price target consensus of $48.63, which is a 28.5% upside from current levels. In a report issued on May 9, Wedbush also downgraded the stock to Hold with a $40 price target.
See today’s analyst top recommended stocks >>
Nordstrom Inc’s market cap is currently $5.9B and has a P/E ratio of 11.35. The company has a Price to Book ratio of 6.83.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Nordstrom, Inc. engages in the manufacture and trade of clothes, shoes and accessories. It operates through the following business segments: Retail, Credit and Corporate/Other. The Retail segment manages physical stores and online shops. The Credit segment offers a range of payment options to customers.
