Don't Chase the JC Penney Company Inc Stock Earnings Rally

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Don't Chase the JC Penney Company Inc Stock Earnings Rally

Zacks Investment Research lowered shares of J.C. Penney from a strong-buy rating to a hold rating in a report on Monday, October 17th. Telsey Advisory maintained it with "Outperform" rating and $11.0 target in Monday, January 9 report.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter. Three analysts have rated the stock with a sell rating, twelve have assigned a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the stock. A rating of 1 or 2 would represent a Buy, and a 3 rating would signify a Hold on the stock.

J.C. Penney, though, had extra challenges in restoring sales after a disastrous attempt to reinvent the company under former Apple executive Ron Johnson. One of the more popular combinations is to use the 50-day and 200-day moving averages. At the close of regular trading, its last week's stock price volatility was 17.79% which for the month reaches 36.3%. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The company had revenue of $2.81 billion for the quarter, compared to the consensus estimate of $2.77 billion. The consensus mean EPS for the current quarter is at $-0.17 derived from a total of 21 estimates from the analysts who have weighed in on projected earnings.

Macy's reported on Thursday that sales fell at established stores in the third quarter, marking the 12th straight quarter of declines, as it had a hard time pulling shoppers through its doors.

Looking ahead, the company expects same-store sales in the range of down 1 percent to flat and adjusted earnings per share of 2 cents to 8 cents.

In other news, Director Javier G. Teruel acquired 135,135 shares of the firm's stock in a transaction that occurred on Tuesday, August 22nd. The shares were sold at an average price of $9.33, for a total transaction of $361,593.48. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Most company stocks have very little volatility.

Large investors have recently added to or reduced their stakes in the stock.

But J.C. Penney has also taken "bold but necessary steps" to help "reset" major parts of its business, Marvin Ellison, the chief executive, said in an earnings call on Friday.

A good method of evaluating a public company's profitability is by taking a look at its Earnings per Share (EPS) performance. In it, J.C. Penney acknowledged that getting rid of old inventory and transitioning to a new women's apparel assortment was tougher than expected. Vanguard Group Inc. now owns 23,858,033 shares of the department store operator's stock valued at $146,966,000 after purchasing an additional 1,270,459 shares during the last quarter.

Wall Street analysts, on average, are forecasting the company's EPS to be -0.40, compared to -0.21 reported in the same quarter previous year. Rhumbline Advisers raised its position in J.C. Penney Company, Inc. Hedge funds and other institutional investors own 71.99% of the company's stock.

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