Is Nordstrom, Inc. (JWN) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Alyeska Investment Group, managed by Anand Parekh, assembled the most valuable position in Nordstrom, Inc. (NYSE:JWN) during the quarter, followed by John Tompkins’s Tyvor Capital, that initiated a $32.4 million position during the quarter. The following funds were also among the new JWN investors: Ken Griffin’s Citadel Investment Group, Ross Margolies’s Stelliam Investment Management, and Don Morgan’s Brigade Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Nordstrom, Inc. (NYSE:JWN) but similarly valued. These stocks are Domino’s Pizza, Inc. (NYSE:DPZ), News Corp (NASDAQ:NWSA), AerCap Holdings N.V. (NYSE:AER), and American Capital Agency Corp. (NASDAQ:AGNC). All of these stocks’ market caps are similar to JWN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DPZ 33 1071671 0
NWSA 33 1020494 -2
AER 32 1377736 -4
AGNC 11 154784 -8

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $906 million. That figure was a minor $282 million in JWN’s case. Domino’s Pizza, Inc. (NYSE:DPZ) is the most popular stock in this table. On the other hand American Capital Agency Corp. (NASDAQ:AGNC) is the least popular one with only 11 bullish hedge fund positions. Nordstrom, Inc. (NYSE:JWN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DPZ might be a better candidate to consider a long position.

Disclosure: none.