Nordstrom, Inc. (JWN): Will This Retailer Outgrow its Competition?

While I believe that upscale retailers such as Nordstrom and Macy’s will flourish as U.S. consumer confidence returns, Macy’s is a more stable bet with a conservative but effective growth model. Both Macy’s and Nordstrom have had a spectacular year – shares of Macy’s are up 35% while Nordstrom is up 23%. Yet Macy’s is still the better value at current prices, with a forward P/E of 11 compared to Nordstrom’s forward P/E of 14.

While Macy’s is a more solid investment at current prices, Nordstrom should still continue to grow in 2013 as long as consumer sentiment, confidence and retail sales growth remain positive.

The article Will This Retailer Outgrow its Competition? originally appeared on Fool.com and is written by Leo Sun.

Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.