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Nordstrom is down but not out

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The bigger they come, the harder they fall. This old saying has proven accurate in the case of upscale retailer Nordstrom lately. After bottoming below $15 during the depths of the Great Recession, Nordstrom stock rallied as high as $83 earlier this year as investors bought into the company's growth strategy. The stock has since lost more than a third of its value, though, as investors have started to question Nordstrom's growth prospects. Most of that drop came in the past month. Indeed, Nordstrom's recent third quarter earnings report was certainly disappointing. However, its Q3 performance was far better than that of top department store chain Macy's. I think Mr. Market has overreacted to...

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