Nordstrom Net Income vs. Profit Margin

J1WN34 Stock   138.61  0.00  0.00%   
Taking into consideration Nordstrom's profitability measurements, Nordstrom may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Nordstrom's ability to earn profits and add value for shareholders.
For Nordstrom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nordstrom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nordstrom utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nordstrom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nordstrom over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For information on how to trade Nordstrom Stock refer to our How to Trade Nordstrom Stock guide.
Please note, there is a significant difference between Nordstrom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nordstrom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nordstrom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Nordstrom Profit Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nordstrom's current stock value. Our valuation model uses many indicators to compare Nordstrom value to that of its competitors to determine the firm's financial worth.
Nordstrom is currently regarded as number one stock in net income category among its peers. It also is currently regarded as number one stock in profit margin category among its peers . The ratio of Net Income to Profit Margin for Nordstrom is about  8,557,692,308 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nordstrom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nordstrom's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Nordstrom Profit Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Nordstrom

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
178 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Nordstrom

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.02 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Nordstrom Profit Margin Comparison

Nordstrom is currently under evaluation in profit margin category among its peers.

Nordstrom Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Nordstrom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nordstrom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nordstrom's important profitability drivers and their relationship over time.

Use Nordstrom in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nordstrom position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nordstrom will appreciate offsetting losses from the drop in the long position's value.

Nordstrom Pair Trading

Nordstrom Pair Trading Analysis

The ability to find closely correlated positions to Nordstrom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nordstrom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nordstrom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nordstrom to buy it.
The correlation of Nordstrom is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nordstrom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nordstrom moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nordstrom can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Nordstrom position

In addition to having Nordstrom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Aggressive Defence Thematic Idea Now

Aggressive Defence
Aggressive Defence Theme
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Defence Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Nordstrom Stock

When determining whether Nordstrom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Nordstrom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nordstrom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nordstrom Stock:
Check out Risk vs Return Analysis.
For information on how to trade Nordstrom Stock refer to our How to Trade Nordstrom Stock guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Nordstrom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nordstrom at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nordstrom's income statement, its balance sheet, and the statement of cash flows.
Potential Nordstrom investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Nordstrom investors may work on each financial statement separately, they are all related. The changes in Nordstrom's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nordstrom's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.