Recs

0

2-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 a distressing two-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 $7.38 billion
Industry Department stores
Trailing-12-Month Revenue $17.5 billion
Management CEO Ronald Johnson (since November 2011)
CFO Michael Dastugue (since January 2011)
Return on Equity (Average, Past 3 Years) 5.3%
Cash/Debt $1.09 billion / $3.1 billion
Dividend Yield 2.3%
Competitors Kohl's
Macy's
Target

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

On CAPS, 25% of the 728 members who have rated J.C. Penney believe the stock will underperform the S&P 500 going forward.

Just a couple of weeks ago, one of those bears, elizabethzen, seriously questioned the company's new approach:

So [J.C. Penney] is going to follow the Apple Store model with more and better informed sales help? ... Yes, [J.C. Penney] can add clerks but will they be knowledgeable about all the products in the store? Not the limited inventory to be found in an Apple store but thousands of clothing, jewelry, home products, and other items [J.C. Penney] carries? And will these clerks feel passionately that [J.C. Penney's] products are superior to those in other stores? And will customers suddenly think that shopping at [J.C. Penney] is an experience, that the products are special and worth more than similar things sold elsewhere. Does the name Penney's have status, or does it sound more like a place to shop for inexpensive but necessary items - like underwear and basic pieces of clothing? [J.C. Penney] stands for cheap and not so chic, even with an army of new clerks and the associated rise in overhead.

What do you think about J.C. Penney, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

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. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. 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.

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: 1755235, ~/Articles/ArticleHandler.aspx, 10/31/2014 7:32:47 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...

Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated 10 hours ago Sponsored by:
DOW 17,195.42 221.11 1.30%
S&P 500 1,994.65 12.35 0.62%
NASD 4,566.14 16.91 0.37%

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

10/30/2014 4:56 PM
JCP $7.63 Up +0.04 +0.53%
J.C. Penney Compan… CAPS Rating: *

Advertisement