This is a sample stock analysis, the type of feature that we regularly share with subscribers at http://www.manifestinvesting.com Stocks selected during our FREE/public monthly webcasts known as our Round Table have outperformed the market (Wilshire 5000) for over 5 years. FREE test drives and trial subscriptions available. If you’d like to be added to a reminder list for future monthly Round Tables, send a request to nkavula1@comcast.net.
Here’s a quick look at Nordstrom (JWN). It’s a quality company, but the sagging profitability is a concern. These return forecasts should make it clear why it was “sold” from the Round Table tracking portfolio after only five months — but after it had delivered gains greater than 40%.
Note the return forecast (PAR) in the chronicle and the erosion of quality. This is also an example of a company going from forecast excess returns (pink shaded area, projected relative return) to sub-zero where the stock is projected to lag the market over the long term.
Expecting Alpha 