Should Value Investors Buy Nordstrom (JWN) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company to watch right now is Nordstrom (JWN). JWN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.66. This compares to its industry's average Forward P/E of 20.12. Over the past 52 weeks, JWN's Forward P/E has been as high as 13.36 and as low as 8.14, with a median of 11.72.Investors should also recognize that JWN has a P/B ratio of 3.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. JWN's current P/B looks attractive when compared to its industry's average P/B of 6.85. Over the past year, JWN's P/B has been as high as 4.65 and as low as 3.24, with a median of 3.90.Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JWN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.54.Finally, we should also recognize that JWN has a P/CF ratio of 5.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JWN's P/CF compares to its industry's average P/CF of 18.31. Over the past 52 weeks, JWN's P/CF has been as high as 6.41 and as low as 2.98, with a median of 5.62.These figures are just a handful of the metrics value investors tend to look at, but they help show that Nordstrom is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JWN feels like a great value stock at the moment.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordstrom, Inc. (JWN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks