Nordstrom Stock Rises on Jefferies Upgrade

The firm believes the retailer is better-positioned to ride out inflation than its peers

Deputy Editor
Sep 15, 2022 at 10:42 AM
facebook twitter linkedin

The shares of Nordstrom Inc (NYSE:JWN) are up 4.4% at $18.77 at last glance, after an upgrade from Jefferies to "buy" from "hold," with a price-target hike to $24 from $21. The firm also downgraded Kohl's (KSS), pointing to JWN's greater exposure to high-income shoppers unaffected by inflation. Of the 14 analysts in coverage, however, 12 still carry a "hold" or worse rating on Nordstrom stock. 

On the charts, the stock has struggled to rebound from its late-August bear gapafter which it fell to a Sept.1, 21-month low of $16.83. Overhead pressure at the descending 20-day moving average helped reject JWN's most recent rally as well. Year-to-date, the equity is down 17.6%. 

Over in the options pits, bulls rule the roost. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JWN sports a 10-day call/put volume ratio of 7.68. This ratio ranks higher than 99% of readings from the past year, showing calls being picked up at a much faster-than-usual rate. During this time, the weekly 9/2 18-strike call saw the most activity. 

There is plenty of short squeeze potential surrounding the security, as short interest makes up 21.8% of the stock's available float. It would take nearly four days to cover, at JWN's average pace of trading. 



Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners