Find an Options Broker | Log In | Register

A Retailer Worth Being Bullish On

by Jon Lewis 05/07/09

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.

More Trading Ideas

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.

1 | 2 | Next

More By This Expert

Put Your Money Where Your Mouth Is

Despite the economic slowdown, consumers continue to purchase peanut butter, jelly and all other J.M. Smucker (SJM) products, and the stock may see a big move after earnings next week.

Dell May Take the Street by Surprise … Again

Dell (DELL) has some good things going for it heading into earnings that could make it a great candidate for a pre-earnings call play.

'CAT' About to be Let Out of the Bag

Heading into earnings, the indicators point to Caterpillar (CAT) breaking above its September high. So look at a bullish trade before the company reports.

Will HAL Bust Through the September Highs?

Skepticism in Halliburton (HAL) may be on the verge of unwinding into buying pressure, which could be what the stock needs to break out to new highs.

Breakout in INFY Almost a Sure Thing

Infosys Technologies (INFY) reports earnings next week, and that could very well be the key to a breakout in the stock.