Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



1-Star Stocks Poised to Plunge: J.C. Penney?

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

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.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1921589, ~/Articles/ArticleHandler.aspx, 10/28/2016 10:14:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,200.46 30.78 0.17%
S&P 500 2,131.80 -1.24 -0.06%
NASD 5,216.48 0.50 0.01%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 9:56 AM
JCP $8.41 Up +0.10 +1.25%
J.C. Penney CAPS Rating: *