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Is Nordstrom Still A Good Buy?

Apr. 27, 2012 10:59 AM ETAMZN, JWN
Robert Freedland profile picture
Robert Freedland

I have been a big fan of Nordstrom (JWN) since I lived in California in the 1980s. When my family moved to Wisconsin, we always placed Nordstrom on our destination list when I visited my family in Los Angeles. We shopped there for children's clothing and shoes, I found unique shoes there for myself, and my wife and daughters loved their clothing (and still do!).

Recently, my wife asked me to make sure that we held some Nordstrom stock and I purchased some for her. In addition, JWN is a holding in my new "Sustained Momentum" model on Covestor. But besides the ever-present piano player (which apparently may be going by the wayside) by the escalator on the first floor, and the wonderful Nordstrom Rack division, which now is on our list of must-stop-and-check when we journey to the Mall of America, is this stock still a good buy after a rather significant price appreciation?

Since I mentioned price appreciation, let me point out that Nordstrom closed today (4/25/12) at $55.18 up $1.25 or 2.32% on the day. Looking at the StockCharts 'point & figure' chart on JWN:

Click to enlargeNordstrom Point and Figure Chart from StockCharts.com

We can easily see the powerful uptrend this stock has experienced from its low at $17.50 in July 2009, to its recent price of $55.18. The stock underwent minor corrections in mid-2010 and 2011, but has once again resumed its upward momentum.

Nordstrom is more than just lattes and shoes. It has shown its savvy in adapting to a world of internet retail with recent purchases of Bonobos, which makes men's clothing, and the 2011 acquisition of HauteLook and Sole Society. This same article points out how Nordstrom is hiring up to 400 tech workers to staff its retail e-commerce division. It is becoming increasingly important to develop an internet presence to deal

This article was written by

Robert Freedland profile picture
Robert Freedland is a medical professional by trade and an amateur investor who has been blogging on Stock Pick Bob's Advice since 2003. He has been investing in the stock market for 46 years, having made his first purchase at the age of 13 of five shares of Global Marine in September 1967. He enjoys sharing his philosophy and perspective on investing, both by blogging and podcasting. Visit Bob's blog: Stock Pick Bob's Advice (http://bobsadviceforstocks.tripod.com/bobsadviceforstocks/). Since 2009, he has been managing portfolios on Covestor, which now include Growth and Momentum (http://covestor.com/robert-freedland/growth-and-momentum), Sustained Momentum (http://covestor.com/robert-freedland/sustained-momentum), Healthcare (http://covestor.com/robert-freedland/healthcare) and Large Cap Momentum (http://covestor.com/robert-freedland/large-cap-momentum).

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