Shares of troubled retailer J.C. Penney (NYSE: JCP ) jumped as much as 18% today after the company announced strong earnings. The highlight of the report was the 6.2% increase in same-store sales this quarter, the second consecutive quarter of same-store sales growth.
While that may be nice, J.C. Penney had undergone nine consecutive quarters of same-store sales losses before these last two quarters of growth. So are the two most recent quarters enough to signal a turnaround? Motley Fool analyst Sara Hov isn't sure. On one hand, the same-store sales increase, the departure of Ron Johnson, and an expansion of its gross margin are all good signs. However, 30% of the stock is held by short-sellers and there's a lot of bearish sentiment surrounding the company.
So, is today the day for investors to dive into J.C. Penney? On today's Stock of the Day, Sara says nay -- she'd rather be investing in retailers like Nordstrom and Urban Outfitters.
Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.