Shares of J.C. Penney (NYSE:JCP) moved upward today, after analysts upgraded the stock to a buy on expectations that same-store sales will continue to grow in 2014. However, with such low hurdles to clear for J.C. Penney to grow its same-store sales, is this prediction really indicative of a company turning around, or is the optimism here short-sighted?
In this segment from Tuesday's Investor Beat, host Chris Hill and Motley Fool analysts Morgan Housel and Mike Olsen discuss the future of J.C. Penney. Morgan makes the point that this could be what Warren Buffett once called a "cigar butt stock." They also consider whether the company would need to get a lot smaller before a turnaround was even possible, and what plan, if any, management could have for bringing customers back in the door.