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.