1-Star Stocks Poised to Plunge: J.C. Penney?
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 (NYS: JCP) has received the dreaded one-star ranking.
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. Penneyfacts
Headquarters (founded) | Plano, Texas (1902) |
Market Cap | $5.0 billion |
Industry | Department stores |
Trailing-12-Month Revenue | $16.5 billion |
Management | CEO Ronald Johnson (since November 2011) |
Return on Equity (average, past 3 years) | 1.8% |
Cash/Debt | $839.0 million / $3.1 billion |
Dividend Yield | 3.6% |
Competitors | Kohl's |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 30% of the 862 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 MajorBob04, tapped the stock as a particularly unfashionable pick:
J.C. Penney is a well-known brand, but their current selection and style of clothing makes them a second tier apparel company. They are caught between serving the current customers, who are getting older and migrating to more expensive tastes, and the new generation that views [J.C. Penney] as older generation fashion. They would be well-served to look at [establishing] new brands or acquiring small / new niche companies.
Tough choices, but I don't see how they'll continue to deliver on expectations for growth and/or earnings.
We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
The article 1-Star Stocks Poised to Plunge: J.C. Penney? originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
