Third-Quarter Results

Sales were up 119% from last to $86.2 million. Earnings also came in strong at 43 cents per share, 12 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last four quarters by an average of 6 cents, or 44%.

E House CEO Xin Zhou said that he is confident the company will maintain its strong growth trajectory as the Chinese economy continues to boom on both organic growth and government monetary and stimulus policy.

Estimates Jump

Analysts agree, with the current-year estimate adding 26 cents in the last week to $1.22. The next-year estimate is pegged at $1.51, a 24% growth projection.

Valuation

With estimates up, valuations look attractive. Shares are trading with a forward P/E of 15X, a discount to the overall market with the nice growth projection in tow.

The Chart

Shares of EJ have posted big gains over the last 8 months, but have recently pulled back a bit to hit a the long-term trend line at $17. Take a look below.

Last Week's Momentum Zacks Rank Buy Stocks

Nordstrom Inc. (JWN) continues to trade near its 52-week high on the heels of better than expected Q3 results. Read Full Article.

Fossil Inc. (FOSL) recently gapped higher and hit a new 52-week high on a strong Q3 earnings surprise. Read Full Article.

China Green Agriculture, Inc. (CGA) is once again pressuring its 52-week high after jumping higher on a recent third-quarter earnings surprise. Read Full Article.

Skechers USA Inc. (SKW) reported third-quarter results on Oct 21 that came in far ahead of expectations on strong international sales and margin expansion. Read Full Article. Zacks Investment Research

($JWN) Nordstrom Incorporated – Earnings Estimates Rising

For Immediate Release

Chicago, IL – November 20, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Universal Health Services, Inc (UHS), Crane Co. (CR), Nordstrom Inc. (JWN) and Cooper Tire & Rubber Company (CTB).
    
Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=5607

Zacks #1 Rank Stocks have nearly tripled the S&P 500 since 1988, producing an average annual return of +26%. Performance has been notable even during volatile and down times. For example, during the last bear market, 2000-2002, the market tumbled -37.6% – but Zacks #1 Rank stocks gained +43.8%.

Here is a summary of today's selected stocks that are now highly rated by Zacks:          
       
Aggressive Growth – Universal Health Services, Inc (UHS)
Universal Health Services, Inc remains a good value as the Zacks Consensus Estimate continues to climb.

Zacks Guide to Aggressive Growth Investing (free!): http://at.zacks.com/?id=4309

Growth & Income – Crane Co. (CR)
Crane Co., which boasts an industry-leading yield of 2.7%, recently declared a quarterly dividend of 20 cents per share. The company also posted solid results for the third quarter, raising the lower end of its earnings outlook.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310
  
Momentum – Nordstrom Inc. (JWN)
Nordstrom Inc. continues to trade near its 52-week high on the heels of better than expected Q3 results.

Zacks Guide to Momentum Investing (free!): http://at.zacks.com/?id=4311

Value – Cooper Tire & Rubber Company (CTB)
Cooper Tire & Rubber Company has surprised on estimates 4 consecutive quarters by an average of 330.99%. The company trades is attractively valued with a forward P/E of 10.6.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

How to Regularly Access Picks from the Zacks Rank Discovery for Free:  http://at.zacks.com/?id=5607
 
Underlying the four free stock picks is a simple truth that first appeared in a Financial Analysts Journal article published in 1979. Leonard Zacks, a Ph.D. in Mathematics from M.I.T. found that "earnings estimate revisions are the most powerful force impacting stock prices."  Zacks #1 Rank is awarded to a stock when analysts sharply upgrade their estimates of what the company will earn.

Today, Zacks is promoting its stock recommendations by offering four daily picks free to those who register at http://at.zacks.com/?id=5607 

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

Then, when changes are discovered, they’re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock-picking system continues to outperform the market by a nearly 3-to-1 margin. 
  
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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Zacks.com

Aggressive Growth Stocks:
Contact: Bill Wilton
Phone: 312-265-9277

or

Growth & Income Stocks:
Contact: Alex Kolb
Phone: 312-265-9149

or

Momentum Stocks:
Contact: Michael Vodicka
Phone: 312-265-9226

or

Value Stocks:
Contact: Tracey Ryniec
Phone: 312-265-9232

Email: pr@zacks.com
Visit: www.zacks.com

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
 

Company Description

Nordstrom, Inc operates as a specialty fashion retailer for men, woman and children in the United States. The company was founded in 1901 and has a market cap of $7.38 billion.

The retail sector has been weak for the last year as consumers continue to struggle with overbearing debt and high unemployment. But in spite of the challenges shares of Nordstrom have posted big gains as the company adjusts to the challenging environment. This dynamic showed up on Nov 13 when Nordstrom posted better than expected third-quarter results.

Third-Quarter Results

Same-store sales were down 1.2% from last year, but net sales were up 3.5% to $1.87 billion. Earnings came in one penny ahead of the Zacks Consensus Estimate at 38 cents per share. The company has beat in each of the last four quarters by an average of 3 cents, or 8%.

Nordstrom noted that its Nordstrom Rack store, a value oriented extension of the its main store, saw increased demand, with same-store sales up 3% from last year. The company also noted that its 90 basis point expansion in gross margin was largely offset by a jump in performance related compensation.

Estimates Rising

The good quarter pushed estimates higher. The current-year estimate is up 6 cents in the last week to $1.82, while the next-year estimate is up 9 cents to $2.17, a 19% growth projection.

Valuation

Based upon the current-year estimate, this stock trades with a P/E multiple of 18X, a slight premium to the overall market.

The Chart

Shares of JWN are up big over the last 4 months after bottoming out just above $18 in early July. Shares have been hovering near the 52-week high for the last few weeks ahead of prime-time holiday spending season.

Zacks Investment Research