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

$5.7 billion

Industry

Department stores

Trailing-12-Month Revenue

$15.6 billion

Management

CEO Ronald Johnson (since November 2011)

CFO Kenneth Hannah (since May 2012)

Return on Equity (average, past 3 years)

0.5%

Cash/Debt

$888.0 million / $3.2 billion

Competitors

Kohl's (NYSE: KSS  )

Macy's (NYSE: M  )

Sears, Roebuck and Co.

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

On CAPS, 34% of the 936 members who have rated J.C. Penney believe the stock will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, NHWeston, succinctly summed up the J.C. Penney bear case for our community:

Just can't seem to do anything right. They can't do "click and order" [online] or "Brick and mortar" [walk-in stores] well enough to distinguish themselves from other mid level competitors. Worse, stores are getting sloppy. Back-to-school went poorly; Christmas will be worse. Who needs 'em anymore?

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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.


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