Stock Idea: Nordstrom Inc. (JWN, $41.96)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Nordstrom Inc. (JWN) is a specialty fashion retailer which sells merchandise through retail stores and online; manufactures private label clothing; owns a bank and offers credit and debit cards. The stock dividend is 80 cents per share and yields 1.91%.

A consensus of earnings estimates from 22 investment firms shows that earnings per share are expected to increase 39.2%, 13.3% and 11.8% in the years 2011 through 2013.

If the stock price continues its current rise toward the former high of about $58., investors could earn a 35% return. I bought the stock recently at $40.50, and plan to sell around $56. (I never try to get every penny of profit out of a stock trade. I just sell when it's close to my target and move on to another attractive stock.)

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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