Nordstrom, Inc. (NYSE: JWN) shares slid back in value on Wednesday January 18 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Credit Suisse Group upgraded shares of Nordstrom, Inc. (NYSE: JWN) from Neutral to Outperform today. With a rating of Outperform on the stock, the company has a 52-week high of $62.82. The one-year price target of $53.15 is above the opening price of $45.20, causing a fair amount of other analysts to comment on the company in recent days. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday Nordstrom, Inc. (NYSE: JWN) shares last traded at $43.16, a drop of $1.22 compared to the previous closing price. Opening at $45.20, they varied from $42.90 and $45.22 throughout the day.
Nordstrom, Inc. (NYSE: JWN) now has a market cap of 7.48B.
Nordstrom, Inc. (NYSE: JWN) Average Daily Trading Volume
The stock’s average daily volume is 3,461,780 shares out of a total float 116,686,000 and some 836,804 shares traded hands yesterday, 35 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Nordstrom, Inc. (NYSE: JWN) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Nordstrom, Inc. (NYSE: JWN) now has a 50-day MA of $51.59 and 200-day MA of $50.36. It has traded in a 52-week range between $35.01 – 62.82 and today’s last price is 31.30%% lower than the 52 week high of $62.82.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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