Analyst Downgrades: Nordstrom, Inc., Dillard's, Inc., and ConforMIS Inc

Analysts downwardly revised their ratings and price targets on Nordstrom, Inc. (JWN), Dillard's, Inc. (DDS), and ConforMIS Inc (CFMS)

May 13, 2016 at 10:07 AM

Analysts are weighing in on department stores Nordstrom, Inc. (NYSE:JWN) and Dillard's, Inc. (NYSE:DDS), as well as medical tech stock ConforMIS Inc (NASDAQ:CFMS). Here's a quick roundup of today's bearish brokerage notes on JWN, DDS, and CFMS.

JWN is burning to the ground this morning, down 15.3% at $38.29 and earlier hitting a four-year low of $38.00. Contributing to the latest meltdown in a retail stock is the company's first-quarter earnings miss, lackluster same-store sales, and bleak full-year outlook. Making matters worse, no fewer than 14 analysts cut their price targets on Nordstrom, Inc., with the lowest outlook set by Evercore ISI, at $32. While shareholders kick rocks, bearish options traders couldn't be happier. JWN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.35 ranks in the 85th annual percentile. In other words, speculators have been buying to open puts over calls at a much quicker-than-usual clip of late.

DDS is suffering a similar post-earnings fate, down 4.8% at $57.74, and fresh off a four-year low of $55.21. The retailer's per-share profit came up short of the consensus view, while total merchandise sales and same-store sales both slowed. On top of that, J.P. Morgan Securities and Deutsche Bank slashed their respective price targets to $58 and $55. Dillard's, Inc. short sellers find themselves in a good place, though. During the most recent reporting period, short interest swelled 19%, and now accounts for almost 16% of the stock's float. At DDS' typical trading volume, it would take more than two weeks for these bearish bets to be covered.

Although not a retail stock, CFMS is getting clobbered on a sharp first-quarter loss, a lowered sales outlook, and an unexpected CEO ouster. At last check, the stock has tanked 50% at $5.07, with losses exacerbated by downgrades to the equivalent of a "hold" at J.P. Morgan Securities and Wells Fargo, and at least four price-target reductions. What's more, ConforMIS Inc earlier touched a record low of $4.91. Futures downgrades are a distinct possibility, considering 100% of analysts rated CFMS a "strong buy," heading into today.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Follow @Schaeffers

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?