Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store operator J.C. Penney (NYSE: JCP) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at J.C. Penney's business and see what CAPS investors are saying about the stock right now.

J.C. Penney facts

Headquarters (founded) Plano, Texas (1902)
Market Cap $5.0 billion
Industry Department stores
Trailing-12-Month Revenue $16.5 billion
Management CEO Ronald Johnson (since November 2011)
CFO Kenneth Hannah (since May 2012)
Return on Equity (average, past 3 years) 1.8%
Cash/Debt $839.0 million / $3.1 billion
Dividend Yield 3.6%
Competitors Kohl's
Macy's
Sears

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 30% of the 862 members who have rated J.C. Penney believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star MajorBob04, tapped the stock as a particularly unfashionable pick:

J.C. Penney is a well-known brand, but their current selection and style of clothing makes them a second tier apparel company. They are caught between serving the current customers, who are getting older and migrating to more expensive tastes, and the new generation that views [J.C. Penney] as older generation fashion. They would be well-served to look at [establishing] new brands or acquiring small / new niche companies.

Tough choices, but I don't see how they'll continue to deliver on expectations for growth and/or earnings.

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