Nordstrom (JWN) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Nordstrom (JWN) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that could favorably impact its stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often base their valuations on earnings estimates, leading to significant stock price movements when these estimates change [4]. Earnings Estimate Revisions for Nordstrom - Nordstrom is expected to earn $1.97 per share for the fiscal year ending January 2025, representing a year-over-year decline of 7.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Nordstrom has increased by 3.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10].