Friday Morning Insights: Nordstrom, Inc. (JWN), NVIDIA Corporation (NVDA), J.C. Penney Company Inc (JCP), Shake Shack Inc (SHAK)

Nordstrom, Inc. (NYSE:JWN) shares are falling over 14% in pre-market Friday, after the department store company reported that its earnings fell by more than half in the first quarter and warned about slowing sales. Following review of its 1Q16 results, Piper Jaffray analyst Neely Tamminga reduced her price target for the stock to $45 (from $62), while reiterating a Neutral rating. Tamminga commented, “We are adjusting our estimates on JWN shares on the heels of its FQ1 release in which EPS of $0.26 came in below consensus of $0.47 and our estimate of $0.40 driven by both top-line weakness and gross margin pressure. Management updated their full-year guidance to better reflect current trends and now expects 2016/FY17 EPS of $2.50 to $2.70 vs. $3.10 to $3.35 previously. We continue to believe Nordstrom is on the right customer-centric, channel-agnostic path in becoming a leader in the retailing landscape. That said, given a muted outlook for the balance of the year we believe a Neutral rating is appropriate at current levels.”

Out of the 10 analysts polled by TipRanks (in the past 3 months), 3 rate Nordstrom stock a Buy, 6 rate the stock a Hold, while one suggests to sell. The analysts’ 12-month price estimate for the stock stands at $53.43, with a 18% return potential.

NVIDIA Corporation (NASDAQ:NVDA) shares are up nearly 8% to $38.40 in pre-market trading, after the graphics processor company reported April quarter results that solidly beat consensus expectations. In reaction, Canaccord analyst Matt Ramsay raised his price target from $41 to $45, while reiterating a Buy rating on the stock. Ramsay noted, “Overall, we maintain our belief NVIDIA’s transformation from a PC-leveraged GPU supplier to a diverse visual-computing company is essentially complete, with growth and earnings power now driven by the company’s four target growth markets of gaming, enterprise, HPC/cloud, and automotive. We forecast strong long-term sales and earnings growth given the company’s differentiated competitive position in markets driven by key secular themes including gaming, augmented/virtual reality, eSports, machine learning, and automotive display/control.”

Out of the 22 analysts polled by TipRanks (in the past 3 months), 9 rate NVIDIA stock a Buy, while 13 rate the stock a Hold. With a potential upside of 2.11%, the stock’s consensus target price stands at $36.32.

J.C. Penney Company Inc (NYSE:JCP) shares tumbled nearly 9% to $7.12 in pre market trading Friday, after the retail company missed quarterly sales estimates as same-store sales fell way below expectations. The company reported an adjusted loss of 32 cents a share on revenue of $2.81 billion, compared to consensus estimates of a loss of 38 cents on revenue of $2.92 billion. Same-store sales fell 0.4 percent for the quarter, with Wall Street expecting a gain of 3.2 percent.

According to TipRanks, out of the 17 analysts who have rated the company in the past 3 months, 5 gave a Buy rating, 9 remain on the sidelines, and 3 recommend to Sell. The average 12-month price target for the stock is $10.92, marking a 40% upside from where shares last closed.

Shake Shack Inc (NYSE:SHAK) shares are up nearly 5% in pre-market trading, after the burger maker reported first-quarter results that topped expectations across the board on Thursday. The company had $0.08 in earnings per share (EPS) on $54 million in revenue, compared to consensus estimates of $0.05 in EPS on $52.06 million in revenue. Subsequently, Jefferies analyst Andy Barish reiterated a Hold rating and $40 price target on the stock. Barish commented, “SHAK continues to display very powerful operating metrics across all key areas and defy the difficult, competitive operating environment seen in most sectors, even fast-casual. This unique “fine-casual” brand beat on sss, margins, EPS and EBITDA and raised full year guidance. We do the same, going to EBITDA of $38/55mm for ’16/’17 (from $36.6/49mm) and believe conservativeness may still be in model. We continue at Hold.”

Out of the 6 analysts polled by TipRanks (in the past 3 months), 1 is bullish on Shake Shack stock, 4 are neutral, and 2 are bearish. With a return potential of nearly 17%, the stock’s consensus target price stands at $40.

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