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
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|
|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|
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.
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.
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