Nordstrom Stock Enters Correction Mode After Holiday Sales Flop

However, the equity received no fewer than six price-target hikes

Deputy Editor
Jan 14, 2021 at 10:31 AM
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The shares of Nordstrom, Inc. (NYSE:JWN) are taking a tumble today, off 5.1% at last check, following the retailer's nine-week holiday period sales report. Nordstrom experienced a 22% net sales decline, which fell in line with expectations. Meanwhile, the company's digital sales grew 23% year-over-year, and made up 54% of total sales. 

Analysts are brushing off the drop with bull notes. In fact, no fewer than six members of the brokerage bunch lifted their price targets, the highest coming from Evercore ISI to $45. Sentiment surrounding the stock is still cautious, though. Just two covering JWN consider it a "strong buy," compared to 11 calling it a "hold" or worse. Meanwhile, the 12-month consensus price target of $25.83, coming into today, represents a 27.8% discount to last night's close. 

Today's correction may have already been in the cards for JWN, per the stock's 14-day Relative Strength Index (RSI) of 77, indicating that the stock is well into "overbought" territory. The equity certainly has been a hot commodity in recent weeks, and the seven-day win streak is nothing short of impressive. Nordstrom stock hit its highest level since early March during yesterday's trading, and still sports a nine-month lead of 109%. 

Meanwhile, bulls are running the show in the options pits. In the first hour of trading, 8,197 calls and 3,565 puts have exchanged hands. The weekly 2/5 36.50-strike call is the most popular, followed by the 30-strike put in the same series. 

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