Shares of Nordstrom, Inc. JWN have surged 38.4% in the past year, outperforming the broader Retail-Wholesale sector 12.9% increase and the S&P 500 index’s 9.3% rise. Meanwhile, the Zacks Retail - Apparel and Shoes industry’s dipped 7.9% in a year.  

Let’s dive deeper to know more about this Seattle-based fashion retailer.

Nordstrom’s Strategies Aid

Nordstrom is strengthening its digital capabilities, driving growth and enhancing customer engagement. It has been quite focused on driving Nordstrom banner growth, optimizing operations and building momentum at Nordstrom Rack. Digital efforts are also underway.

The company remains focused on its market strategy to capitalize on its digital-first platform, gain market share and deliver profitable growth. In context of this, JWN is focused on three areas, winning in important markets, expanding the reach of Nordstrom Rack and enhancing its digital capabilities.

Nordstrom is focused on leveraging technology to streamline operations, improve inventory management and offer a seamless shopping experience. It is making efforts to drive efficiency and improve customer experience via faster order fulfillment. 

Nordstrom looks to strengthen Rack’s productivity throughout its network, reduce transportation costs and delivery times, and enhance services via faster delivery. Also, increased focus on Nordstrom Rack bodes well. The company continues to focus on introducing more premium brands at Rack, better assortments and increased brand awareness.

JWN’s Earnings Estimate Revision

Reflecting the positive sentiment surrounding the stock, the Zacks Consensus Estimate for fiscal 2025 and fiscal 2026 has seen upward revisions.

Over the past 30 days, the consensus estimate for earnings per share (EPS) for the current fiscal year has risen 0.9% to $2.15 and 3.5% to $2.37 for fiscal 2026. This implies a year-over-year earnings dip of 0.9% for the current fiscal year and growth of 10.4% for the next fiscal year. The consensus mark for sales implies growth of 2.2% for fiscal 2025 and 1.9% for fiscal 2026. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

JWN Price Performance

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JWN Stock’s Valuation

Nordstrom stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, JWN stock is currently trading at 10.96 on a forward 12-month basis, lower than 13.77 of the industry. The stock is also trading lower than its median of 11.98. A Value Score of A further adds strength.

Conclusion

Nordstrom’s robust strategies, including sturdy momentum at the Rack banner and digital endeavors, position it for success. Hence, JWN is confident about its brand strength and ability to achieve profitable growth while delivering value to shareholders.

The stock’s attractive valuation further demonstrates strength. The company currently sports a Zacks Rank #1 (Strong Buy).

Other Key Picks in Retail

We have highlighted three other top-ranked stocks, namely Gap GAP, Boot Barn BOOT and Urban Outfitters URBN.

Gap, a clothing and accessories retailer, currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for Gap’s current financial-year sales indicates growth of 1.6% from the year-ago figure. GAP delivered an average earnings surprise of 77.5% in the trailing four quarters.

Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 14.9% from the year-ago figure. The company delivered a trailing four-quarter earnings surprise of 7.2%, on average.

Urban Outfitters, a fashion lifestyle specialty retailer, currently carries a Zacks Rank of 2. URBN delivered an average earnings surprise of 28.4% in the trailing four quarters.

The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 6.6% from the year-ago figure.

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Nordstrom, Inc. (JWN) : Free Stock Analysis Report

Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report

The Gap, Inc. (GAP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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