Nordstrom Stock Story

JWN

Stock

USD 22.28 0.99 4.25%

Macroaxis Story

It looks like ARKO Corp will be up for a correction faster as its share price went up 0.95% today to Nordstrom's 1.26%While some of us are excited about consumer cyclical space, we will evaluate how persistent are Nordstrom and ARKO Corp fundamentals. We are going to inspect some of the competitive aspects of both Nordstrom and ARKO Corp.

Published over a month ago

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Nordstrom Current Investor Sentiment

Investor biases related to Nordstrom's public news can be used to forecast risks associated with investment in Nordstrom. The trend in average sentiment can be used to explain how an investor holding Nordstrom can time the market purely based on public headlines and social activities around Nordstrom. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Nordstrom's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Nordstrom's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Nordstrom's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Nordstrom.

Nordstrom Maximum Pain Price across 2022-07-01 Option Contracts

Nordstrom's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Nordstrom close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Nordstrom's options.

Is Nordstrom riskier than ARKO Corp (NASDAQ:ARKO)?

By analyzing existing basic indicators between Nordstrom and ARKO Corp, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ARKO Corp with a short position in Nordstrom. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Nordstrom has an asset utilization ratio of 321.15 percent. This suggests that the company is making $3.21 for each dollar of assets. An increasing asset utilization means that Nordstrom is more efficient with each dollar of assets it utilizes for everyday operations.

Is Nordstrom riskier than ARKO Corp (NASDAQ:ARKO)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Nordstrom or McDonalds is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Nordstrom's Liquidity

Nordstrom financial leverage refers to using borrowed capital as a funding source to finance Nordstrom ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nordstrom financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nordstrom's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Nordstrom, but it might be worth checking our own buy vs. sell analysis

Correlation Between Nordstrom and McDonalds Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Nordstrom together with similar or unrelated positions with a negative correlation. For example, you can also add McDonalds Corp to your portfolio. If McDonalds Corp is not perfectly correlated to Nordstrom it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Nordstrom for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between JWN and MCD for more information.

Sale by Anne Bramman of 13333 shares of Nordstrom

Legal trades by Nordstrom insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Nordstrom insider trading alert for sale of common stock by Anne Bramman, Chief Financial Officer, on 22nd of June 2022. This event was filed by Nordstrom Inc with SEC on 2022-06-22. Statement of changes in beneficial ownership - SEC Form 4. Anne Bramman currently serves as chief financial officer, principal accounting officer of Nordstrom [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Outlook On Nordstrom

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Nordstrom revenue. Based on the latest financial disclosure, Nordstrom reported 14.79 B of revenue. This is 107.44% higher than that of the Consumer Cyclical sector and 22.36% lower than that of the Department Stores industry. The revenue for all United States stocks is 56.76% lower than that of the stock. As for ARKO Corp we see revenue of 7.42 B, which is 61.05% lower than that of the Department Stores

	Nordstrom	14.79 Billion
	Sector	7.13 Billion
	ARKO Corp	7.42 Billion

14.8 B

Nordstrom

7.1 B

Sector

7.4 B

ARKO Corp

Analysis of Nordstrom

Latest Sortino Ratio is up to 0.06. Price may slide again.

As of the 24th of May, Nordstrom secures the Risk Adjusted Performance of 0.0463, mean deviation of 3.41, and Downside Deviation of 4.18. Nordstrom technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We are able to interpolate and break down nineteen technical drivers for Nordstrom, which can be compared to its peers in the industry. Please verify Nordstrom variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Nordstrom is priced some-what accurately, providing market reflects its recent price of 21.18 per share. Given that Nordstrom has jensen alpha of 0.4171, we recommend you to check Nordstrom's last-minute market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Nordstrom Investment

Whereas some other companies under the department stores industry are still a bit expensive, Nordstrom may offer a potential longer-term growth to institutional investors. To conclude, as of the 24th of May 2022, we believe that Nordstrom is currently undervalued with below average probability of bankruptcy in the next two years. Our current 90 days buy-or-sell advice on the company is Strong Hold.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Nordstrom. Please refer to our Terms of Use for any information regarding our disclosure principles.

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