Nordstrom Inc (JWN  ) heads into its third-quarter earnings release Tuesday after-hours with momentum after trading near 52-week highs following a strong second quarter.

What To Know: The company reported second-quarter EPS of 96 cents, surpassing expectations by 35.21%, although sales of $3.894 billion narrowly missed estimates. Year-over-year sales growth of 3.23%, alongside a 6.2% increase in digital sales, highlighted resilience in a challenging retail environment.

Nordstrom Rack continued to perform well, with net sales rising 8.8% and comparable sales increasing 4.1%. Gross profit margin improved by 155 basis points to 36.6%, driven by higher full-price sales and operational leverage.

However, inventory grew 8.3%, outpacing sales growth and raising questions about stock management heading into the holiday season.

For the third quarter, analysts will focus on Nordstrom's ability to sustain growth across both banners, particularly the Rack segment, while maintaining margin improvements. Comparable sales, which rose 1.9% in the second quarter, will be closely watched as an indicator of consumer demand.

Updated FY guidance of $1.75-$2.05 per share suggests confidence, but the third quarter results will be critical in validating the company's trajectory toward its 2024 priorities.

How To Buy JWN Stock

By now you're likely curious about how to participate in the market for Nordstrom - be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway (BRK.A  ), can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Nordstrom, which is trading at $24.55 as of publishing time, $100 would buy you 4.07 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, JWN has a 52-week high of $24.99 and a 52-week low of $14.65.