Nordstrom, a big store, did better than people thought they would in the past few months. They made more money than expected, and people are happy about it. Read from source...

Nordstrom, Inc. (JWN) reported better than expected Q2 earnings and revenues. However, looking at the mixed trend of estimate revisions for Nordstrom ahead of this earnings release, mixed signals prevailed. Though the company beat consensus EPS estimates for Q2, the outlook for the industry can have a material impact on the performance of the stock. Overall, a cautious approach is recommended for investment decisions based on this report.

Nordstrom has recently released their Q2 earnings report, reporting a quarterly earnings of $0.96 per share, beating the Zacks consensus estimate of $0.74 per share. This represents an earnings surprise of 29.73%. Nordstrom reported revenues of $3.89 billion for the quarter, surpassing the Zacks consensus estimate by 1.15%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. While Nordstrom has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Nordstrom shares have added about 17.5% since the beginning of the year versus the S&P 500's gain of 17.8%. However, investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Overall, Nordstrom appears to be a relatively strong investment opportunity, despite some potential risks and uncertainties. Investors should carefully consider their own risk tolerance and investment goals when deciding whether or not to invest in Nordstrom. Additionally, they should closely monitor the company's future earnings reports and industry trends to make informed investment decisions.