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.
Mark Reeth has no position in any stocks mentioned. Sara Hov owns shares of Nordstrom. The Motley Fool recommends Urban Outfitters. 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 Motley Fool has a disclosure policy.