Stock Update (NYSE:JCP): J C Penney Company Inc Shares Dip 3% After Announcing Holiday Sales Update


J C Penney Company Inc (NYSE:JCP) announced that its comparable store sales for the combined nine-week November and December period resulted in a (0.8) percent decline over the same period last year, which equates to a 3.1 percent positive two-year stack of comparable store sales for the same time period. The Company also reaffirmed its full-year EBITDA target of $1 billion for fiscal 2016.

“The first three weeks of November proved to be challenging in stores, consistent with the trends in the broader retail industry.  However, the business improved and overall comp sales for the six-week period from Thanksgiving week through the end of December were positive. During the holiday season we saw strength in appliances, outerwear, boots, toys, Sephora and fine jewelry. However, weakness in women’s apparel continued to impact our performance.  We are also encouraged by a very strong performance in our e-commerce business, evidenced by double-digit growth.  This validates the strength of our omnichannel strategy as efforts to improve site functionality, expand fulfillment capabilities, offer flexible shipping options and introduce a broad assortment of new product categories were instrumental to this digital sales growth,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney.

“As we prepare for a new fiscal year, our turnaround in profitability remains on track, and I am pleased that we expect to deliver our fourth consecutive quarter of positive operating profit,” Ellison added.

The Company will report its full fourth quarter and fiscal 2016 results on Feb. 24. (Original Source)

Shares of J.C Penney Company closed yesterday at $7.86, down $-0.61 or -7.20%. JCP has a 1-year high of $11.99 and a 1-year low of $6. The stock’s 50-day moving average is $9.25 and its 200-day moving average is $9.21.

On the ratings front, J.C Penney Company has been the subject of a number of recent research reports. In a report issued on December 20, BMO analyst Wayne Hood reiterated a Hold rating on JCP, with a price target of $9, which implies an upside of 15% from current levels. Separately, on December 5, Credit Suisse’s Michael Exstein initiated coverage with a Hold rating on the stock and has a price target of $7.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Wayne Hood and Michael Exstein have a yearly average return of 7.3% and 5.9% respectively. Hood has a success rate of 57% and is ranked #936 out of 4348 analysts, while Exstein has a success rate of 62% and is ranked #1302.

Sentiment on the street is mostly neutral on JCP stock. Out of 8 analysts who cover the stock, 5 suggest a Hold rating , 2 suggest a Buy and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $8.00, which represents a slight upside potential from current levels.

J. C. Penney Co., Inc. operates department stores, which consist of selling merchandise and services to consumers through its department stores. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings.