A Reversal for Nordstrom, Inc. Is Not Near. The Stock Gaps Up

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The stock of Nordstrom, Inc. (JWN) gapped up by $0.39 today and has $85.22 target or 27.00% above today’s $67.10 share price. The 6 months technical chart setup indicates low risk for the $12.64B company. The gap was reported on Nov, 3 by Barchart.com. If the $85.22 price target is reached, the company will be worth $3.41 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock is up 2.91% or $1.9 after the news, hitting $67.1 per share. About 1.04 million shares traded hands. Nordstrom, Inc. (NYSE:JWN) has declined 18.82% since March 31, 2015 and is downtrending. It has underperformed by 20.57% the S&P500.

Analysts await Nordstrom, Inc. (NYSE:JWN) to reports earnings on November, 12. They expect $0.73 earnings per share, 0.00% or $0.00 from last year’s $0.73 per share. JWN’s profit will be $137.51 million for 22.98 P/E if the $0.73 EPS becomes reality. After $0.93 actual earnings per share reported by Nordstrom, Inc. for the previous quarter, Wall Street now forecasts -21.51% negative EPS growth.

Out of 8 analysts covering Nordstrom Inc. (NYSE:JWN), 3 rate it “Buy”, 0 “Sell”, while 5 “Hold”. This means 38% are positive. Nordstrom Inc. was the topic in 12 analyst reports since August 14, 2015 according to StockzIntelligence Inc.

According to Zacks, “Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers, with stores located in a number of states, including full-line stores, Nordstrom Racks, Faconnable boutiques, and free-standing shoe stores. Nordstrom also operates Faconnable boutiques throughout Europe. Additionally, Nordstrom serves customers through its online presence and through its direct mail catalogs. (Company Press Release)”

The institutional sentiment decreased to 0.86 in Q2 2015. Its down 0.23, from 1.09 in 2015Q1. The ratio dropped, as 69 funds sold all Nordstrom, Inc. shares owned while 195 reduced positions. 49 funds bought stakes while 179 increased positions. They now own 97.65 million shares or 0.26% less from 97.91 million shares in 2015Q1.

Csat Investment Advisory L.P. holds 4.21% of its portfolio in Nordstrom, Inc. for 120,890 shares. Smead Capital Management Inc. owns 768,735 shares or 3.74% of their US portfolio. Moreover, Kynikos Associates Lp has 3.46% invested in the company for 105,783 shares. The Washington-based Evergreen Capital Management Llc has invested 2.88% in the stock. Blue Arrow Capital Management Llc, a New York-based fund reported 364,948 shares.

Since March 17, 2015, the stock had 0 buys, and 1 insider sale for $1.56 million net activity. Little Daniel F sold 20,539 shares worth $1.56M. Koppel Michael G sold 53,878 shares worth $4.31 million. Worzel Ken sold 54,581 shares worth $4.47M. Nordstrom Erik B sold 31,531 shares worth $2.58 million. The insider Winter Alison A sold 13,598 shares worth $1.10M.

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