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 (OTC:JCPN.Q) has received the dreaded 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

$4.3 billion


Department stores

Trailing-12-Month Revenue

$14.5 billion


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

Return on Equity (average, past 3 years)


Cash / Debt

$525.0 million / $3.0 billion


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 975 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 BuyingRetail, succinctly summed up the J.C. Penney bear case for our community:

Expect 4th QTR at [J.C. Penney] to disappoint the street. Comps will not look good until they are up against the really awful numbers from 2012. This pick is short term for me but with only 40% of the floor converted by the end of 2013, I honestly don't expect things to improve on a permanent basis until 2015 when the transformation is complete (if they can hold out that long.)

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

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.