Nordstrom Inc (NYSE: JWN) is taking a beating this month, now down more than 15% since last Wednesday. Still, Payne Capital’s senior wealth advisor is convinced the sell-off only creates an opportunity to load up on the stock.
Garcia explains why she likes Nordstrom
Courtney Garcia agrees a 3.28% dividend yield makes Nordstrom Inc attractive, but has several other reasons to be in the retail stock as well. This afternoon on CNBC’s “Power Lunch”, she said:
Nordstrom has a lot of flagships in major cities like New York and San Francisco, which haven’t had the same foot traffic as pre-pandemic. But it’s starting to come back and can add to a whole segment of their business that hasn’t recovered yet.
Garcia expects the U.S. consumer to remain strong in the face of surging inflation, which could be another tailwind for the Seattle-headquartered American luxury department store chain.
Garcia says JWN is a cheap stock
Analysts forecast Nordstrom Inc to report 9 cents of per-share loss for its fiscal first quarter. Explaining why she still likes the stock in the retail space, Payne Capital’s Garcia further added:
Nordstrom Inc has a loyal customer base and I think it still has a lot of room in its earnings and sales to grow. It’s still cheap on a relative basis and has a lot of room to run to the pre-pandemic levels.
The NYSE-listed firm is expected to report its Q1 results in the coming weeks. Wall Street has an average price target of $25.67 on JWN that represents a 10% upside from here.
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