J.C. Penney Co., Inc. (JCP) - Bear of the Day

We believe that J.C. Penney (JCP) stock will remain under pressure in the near term. Despite the introduction of new product lines, sales performance has not been impressive. J. C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting the sales.

We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance. Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results.

We have a long-term Underperform recommendation on the stock. Our target price of $19.00, 13.4X 2010 EPS, reflects this view.
 
PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
Zacks Investment Research