Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Is Nordstrom the Perfect Stock?

By Prince Damin Subscribe to RSS | November 25th 2011 | Views:
loading
 
  



Everyone would love to find the perfect stock. But will you ever really find a stock that gives you everythingyou could possibly want? One thing's for sure: If you don't look, you'll never find truly great investments. So let's first take a look at what you'd want to see from a perfect stock, and then decide if Nordstrom(NYSE: JWN) fits the bill.

When you're looking for great stocks, you have to do your due diligence. It's not enough to rely on a single measure, because a stock that looks great based on one factor may turn out to be horrible in other ways. The best stocks, however, excel in many different areas, which all come together to make up a very attractive picture. Some of the most basic yet important things to look for in a stock are:

Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line. Higher sales don't mean anything if a company can't turn them into profits. Strong margins ensure a company is able to turn revenue into profit. Debt-laden companies have banks and bondholders competing with shareholders for management's attention. Companies with strong balance sheets don't have to worry about the distraction of debt. Companies need to be able to turn their resources into profitable business opportunities. Return on equity helps measure how well a company is finding those opportunities.

You can't afford to pay too much for even the best companies. Earnings multiples are simple, but using normalized figures gives you a sense of how valuation fits into a longer-term context. Investors are demanding tangible proof of profits, and there's nothing more tangible than getting a check every three months. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.

With a score of 6, Nordstrom makes a respectable showing. As counterintuitive as it may seem during slow economic times, Nordstrom and some of its fellow luxury-oriented retailers have held up as well or better than discounters aimed at helping struggling consumers make ends meet. The story in retail is a tale of two markets. Discount retailers Wal-Mart (NYSE: WMT) andTarget (NYSE: TGT) have started to feel pressure in their quarterly results, as even low-priced offerings can't change the lack of disposable income among lower-end shoppers.

But at the other end of the spectrum, stores catering to the rich have done surprisingly well.Coach (NYSE: COH), for instance, has seen impressive gains for its luxury handbag business, with the company even being able to expand margins despite the slow economy.

As an all-purpose department store, Nordstrom can't match the margins of a specialty retailer like Coach. But it's doing better than Saks (NYSE: SKS), with much better profitability and returns on equity. Nordstrom also gives you a nice dividend, which falls just short of the 2% mark that would earn it its seventh point. Of course, retail is notoriously cyclical, and Nordstrom has seen its share of ups and downs. That keeps it from being the perfect stock in many people's eyes, but if you think the recovery will accelerate in the months and years ahead, Nordstrom may be a good way to play that trend.

Keep searching:- No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you'll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.

Prince Damin - About Author:
Get recent talks and informations about Finance and investment news. Visit www.themoneytimes.com for more information and latest updates about personal finance news .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/investing-articles/is-nordstrom-the-perfect-stock.htm

Related Investing Articles Subscribe to RSS

How Stock Market Browser can give you an edge in stock market
Published by William Jackson on June 26th 2012 | Investing
Stock Market Browser is a beneficial and perfect tool that enables you to have an instant snapshot o...
 
Options trading software: evaluate market positions every minute
Published by Alvin Cook on February 22nd 2012 | Investing
To manage risk factors precisely we need a properly developed program that can assist in evaluation...
 
Which Sensation Should Dodd-Frank Derivatives regulation have on the current market?
Published by Aldred Bailey on June 29th 2012 | Finance
Some derivates information mill this of the unfamiliar highlight. People around the world of the Dis...
 
Finest Opportunity to Niche market Net Banking when 2012
Published by Leonardo Murdock on February 21st 2012 | Finance
The right the possibility to area of interest net banking being recognized one of the population tha...
 
Hidden opportunities in preferred stock
Published by Isol on August 13th 2012 | Finance

Preferred stock typically is issued for innovative investors or other institutional investors. I...
 
 
What are the benefits of listing company in the stock exchange?
Published by Gxgexchange on June 22nd 2012 | Investing
With this article we let you know why it is so important and what are the requirements for any compa...
 
Tips and Tricks for investing in share market
Published by Isol on January 9th 2012 | Investing
Investment is a concept of restoring the money via purchasing of assets, lending loans and fund term...
 
The longevity of surging stock prices
Published by Reyan Hunt on August 13th 2012 | Investing
In a market which has not heard good news for some time now, suddenly there is an upward movement in...
 
Boost in job market due to small bank hiring more
Published by John Harry on February 24th 2012 | Finance
The condition of the job market of the country as far as its financial sector is concerned. The rise...
 
Reliable tips for traders to make riches in the stock market
Published by Cody on June 7th 2012 | Finance
This is one of the most important things that you need to keep in mind before you start trading on s...
 
Preferred stock- a glance
Published by Isol on August 13th 2012 | Finance
Preferred stock typically is issued for innovative investors or other institutional investors. Its n...
 
Choose the accurate trade options to conquer the market tribulations
Published by Alvin Cook on April 7th 2012 | Investing
We all are familiar with trade options which are highly important sort of trading strategy to gain p...
 
Finding Big Profits with live stock market
Published by Jemes Smith on June 12th 2012 | Investing
There are many online trading websites on the internet and alternative the online trading service th...
 
Preferred stock- a glance
Published by Isol on August 13th 2012 | Finance
Preferred stock typically is issued for innovative investors or other institutional investors. Its n...
 
How to make recommendations in stock market
Published by Market Review on March 29th 2012 | Investing
The stock market is perhaps one of the few techniques on the world where investors can make money in...
 
Best Execution in our Home market
Published by John Pattison on December 29th 2011 | Investing
Best execution is definitely a teaching or provide by- agencies some thing to their benefit together...
 
Secure success in competitive market with industrial Bookkeeping
Published by Nelson on January 20th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
What digital options are in stock market business?
Published by Alvin Cook on February 20th 2012 | Investing
Latest stock market strategy which provides huge gain in terms of large investors...
 
Types of mutual funds available in Indian investment market
Published by Chris Luke on May 18th 2012 | Investing
Mutual funds in India are a fast expanding sector offering a wide variety of investment options to s...