Nordstrom, Inc. is showing promise with its strategic initiatives and robust fundamentals. The company’s focus on efficiency, improved customer experience, and digital-first platform is driving its growth trajectory. Nordstrom’s stock has outperformed the industry, with a 31.9% increase in the past three months, reflecting positive analyst sentiment. The Zacks Consensus Estimate for fiscal 2023 earnings per share (EPS) indicates a 21.9% year-over-year increase.
Detailed Examination
Nordstrom is committed to enhancing its Nordstrom Rack banner, optimizing productivity, and bolstering brand awareness. The company opened 11 Rack stores in the third quarter of fiscal 2023, with plans for further expansion across markets. Its strategic focus on critical markets, expanding Nordstrom Rack’s reach, and bolstering digital capabilities is expected to amplify future growth.
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Overall, Nordstrom aims to achieve single-digit annual revenue growth, with operating income surpassing revenues in the long term. The company’s focus on enhancing distribution capabilities and merging physical and digital inventory is anticipated to drive Nordstrom Rack sales by approximately $2 billion in the long term. With a Value Score of B, Nordstrom’s current Zacks Rank #3 (Hold) indicates a favorable outlook.
Embrace These Strong Choices
In addition to Nordstrom, consider three other top-ranking stocks: Abercrombie & Fitch (ANF), Gap (GPS), and Hibbett (HIBB).
Abercrombie & Fitch, known for its casual apparel, currently holds a Zacks Rank #1 (Strong Buy). The company’s projected sales growth and substantial earnings surprises indicate promising prospects.
Gap, a renowned fashion retailer, also boasts a Zacks Rank of 1, with a notable earnings surprise record, signaling robust growth potential.
Similarly, Hibbett, a prominent sporting goods retailer, holds a Zacks Rank of 1, with consistent sales growth expectations and a positive earnings surprise trend.
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The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.
