NEW YORK (TheStreet) -- Shares of Nordstrom are declining by 0.54% to $78.98 in pre-market trading Tuesday, after the department store chain was downgraded to "underweight" from "equal weight" by analysts at Barclays this morning. Barclays maintained its $68 price target on shares. The firm said it sees margins declining for two or more years, as the retailer speeds up the pace on its omnichannel investments. Barclays analysts also think shares are pricing in too much optimism, based on a future potential sale of the company's credit business. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Similarly, the firm initiated shares of peer retailer Macy's this morning with an "underweight" rating and $55 price target. Seattle, WA-based Nordstrom is a fashion specialty retailer operating 262 stores in 35 states nationwide, as well as its e-commerce business through Nordstrom.com and HauteLook. Separately, TheStreet Ratings team rates NORDSTROM INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate NORDSTROM INC (JWN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.23% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JWN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. NORDSTROM INC has improved earnings per share by 5.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NORDSTROM INC increased its bottom line by earning $3.72 versus $3.56 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.72). The net income growth from the same quarter one year ago has exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 3.6% when compared to the same quarter one year prior, going from $137.00 million to $142.00 million. 41.75% is the gross profit margin for NORDSTROM INC which we consider to be strong. Regardless of JWN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JWN's net profit margin of 4.52% compares favorably to the industry average. You can view the full analysis from the report here: JWN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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