Why J.C. Penney Is Poised to Keep Plunging

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 a distressing one-star ranking.

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

J.C. Penney facts

Headquarters (founded)

Plano, Texas (1902)

Market Cap

$3.9 billion

Industry

Department stores

Trailing-12-Month Revenue

$13.0 billion

Management

CEO Ronald Johnson (since 2011)
CFO Kenneth Hannah (since 2012)

Return on Equity (average, past 3 years)

(7.7%)

Cash/Debt

$930 million / $3.0 billion

Competitors

Kohl's (NYSE: KSS  ) Macy's (NYSE: M  ) Sears Holdings

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

On CAPS, 34% of the 1,006 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 LouisFBrooks, succinctly summed up the J.C. Penney bear case for our community:

That sound you hear is the death rattle for a 111 year old retailer. The company is bleeding money with no signs of stopping and sales are dropping. Management appears to be confused on what will save the company and keeps changing directions compounding the problem. This one is [going] the way of TG&Y and [Kmart].

J.C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but investors are beginning to doubt that the comeback is actually coming. If you're wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about JCP's turnaround -- or lack thereof -- and as a bonus, you'll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.

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


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