Are Nordstrom and The Gap for Real?

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This week, Harry Davidowitz, chairman of retail consulting firm Davidowitz & Associates recently said on Yahoo Finance’s Tech Ticker, “If the consumer isn’t petrified, he or she is a damn fool.”

Although the retail maestro is screaming caution on major media stages like Tech Ticker and CNBC, two companies bucking the trend are Nordstrom (JWN) and Gap (GPS). As you will see on their stock charts, both of these stocks’ prices are very extended off their 50-day and 200-day moving averages. Take a look at the fundamentals and technicals of two steaming stocks, JWN and GPS:

Nordstrom (JWN): $42.39 per share
JWN Fundamentals

Market Cap: $9.17 Billion

Forward P/E: 14.44

Trailing P/E: 21.01

Revenue: $39.79 per share

Cash: $3.64 per share

Dividend: 1.5%
Rihanna and TOMS shoes are Heating up the Shelves
Seattle-based Nordstrom Inc (JWN) reported a March same-store sales increase of 16.8% yesterday, compared to analyst estimates of 10.6%. Total sales rose 21% to $815 million from $674 million. It appears shoppers just cannot get enough of Rihanna’s latest wardrobe or the latest shoe craze over TOMS Shoes.

Gap (GPS): $24.78 per share
GPS Fundamentals

Market Cap: $16.51 Billion

Forward P/E: 13.16

Trailing P/E: 15.69

Revenue: $20.45 per share

Cash: $3.85 per share

Dividend: 1.7%

‘They Call Me Mellow Yellow’
San Francisco-based Gap Inc (GPS) reported a same-stores sales increase of 11% yesterday. Analysts were expecting just climb of 3.7%, shattering expectations. The stock is seeing 52-week highs. A lifelong Warren Buffett favorite, the GPS price target estimates were boosted at Goldman Sachs because of the strength in sales at Old Navy.

Disclosure: No positions in the companies mentioned.

Derek Hoffman is the CEO & Co-Founder of Wall St. Cheat Sheet. To read more of his investing insights, visit Wall St. Cheat Sheet

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