Nordstrom shares soar as it makes progress but still has ways to go
Nordstrom sign outside one of its department stores.
Tim Boyle | Getty Images News | Getty Images
Additional retailers include Macy’s, Kohl’sAnd TargetRecent days have seen better-than-expected forecasts for the full year from other companies. As people get back to work and social activities, they expect further consumer momentum.
Nordstrom has seen a stronger reaction from Wall Street than any other company. In premarket trading, shares were up by over 30%.
Omar Saad of Evercore ISI, an analyst at Evercore ISI believes that Nordstrom has experienced a flood of negative sentiment over the past few months. He said that this was due to the poor performance of its off-price Rack company. Nordstorm took “baby strides” in its latest quarter. This was sufficient to provide a significant lift for shares.
This means Nordstrom has plenty of growth potential, especially at Rack, where net sales are still below pre-pandemic 2019 levels. Nordstrom’s entire-line department stores business is, by comparison, essentially flat over that time. the company reported Tuesday.
Nordstrom had lost over 30% during the last six months, as of Tuesday’s closing market. Nordstrom is also currently among the most heavily shorted stocks, with 22% of its shares available for trading sold short.
Simeon Siegel from BMO Capital Markets echoed Saad. Nordstrom has ended the year strong than it began.
He said that BMO is still not willing to recommend the stock as it remains unclear if Nordstrom can achieve its full year targets or if this will be an “one-time success.”
BMO is targeting Nordstrom shares at $30. Stock closed at $19.54 on Tuesday.
The story is still in development. Keep checking back for more updates.