A Retailer Worth Being Bullish On
by Jon Lewis 05/07/09
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Nordstrom (JWN) is a fashion specialty retailer that typically sets up shop in America's finer malls. In fact, the company operates in just 28 states, so we're not talking Wal-Mart (WMT) here.
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The company is set to report on May 14, and it hasn't missed an earnings estimate in two years.
On the other hand, profits have been shrinking. During the past four quarters, earnings have dropped by an average of 32%. But analysts look for 59% shrinkage this quarter. Nothing like lowering the expectation bar.
On the chart, JWN has outperformed the retail sector in a big way, nearly doubling off its March low. And its 10-day moving average has provided key support for the rally.
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