Nordstrom, Inc. (NYSE:JWN)

This stock has plumeted in the last month, presumably on fears that we're about to enter another recession and no one will shop there. Based on that, earnings estimates are averaging a paltry 6 percent growth over a year ago, in spite of much stronger growth in the past several years. I'm not as worried about that as some people. Maybe I'm just naive, but I think the economy's in better shape than the media makes it out to be. I don't think holiday sales will be down as much as expected, and that will give Nordstrom a boost.
But even if we do fall back into a recession, there's a lot to like about Nordstrom. They're not catering to main street. Their target is more upper-middle class, who are not as seriously affected by this economic climate. Moreover, they can weather the storm through efficiency. They have consistently had higher margins than competitors and - this is the big point - they turn over their inventory much faster.
They have room for growth if otner companies falter and have been growing faster than rivals for years.They continue to invest in growth and have increased their dividend twice in the past year and a half. This does not seem like a company on the brink of financial ruin.
So I like Nordstron a lot, at the very least in the next year but possibly far beyond. It's not as great a bargain as some retailers, but because it seems like a better company, that doesn't bother me.