JCPenney (JCP) Meeting Peer Performace Could Provide for Prodigious Profits
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JCPenney (NYSE: JCP) might be down, but is it out?
According to the WSJ, no.
The WSJ notes that Q1 consensus EPS expectations have dropped about 40 cents since before April's management shuffle to a loss of 86 cents per share. Number compare with a loss of 74 cents per share reported in the prior-year period.
JCPenney revealed earlier in the month that Q1 comps would be down 16.6 percent of so and management is likely to lump (as best possible) all the bad news into one segment.
The WSJ goes on to compare JCPenney to Macy's, which reported strong Q1 results on Wednesday morning. Though a tough comparison, Macy's and JCPenny have similar store counts and were relatively comparable in 2011, before Ron Johnson took the helm at JCPenney.
After adjusting for net borrowings, Macy's trades at 0.9 times expected revenue versus 0.5 times for JCPenney.
Should JCPenney set itself on the right course and make up for about 50 of lost sales recently lost and close half the valuation gap with Macy's, shares should be up about 130 percent, or $44 per share.
Shares of JCPenney are down 2.5 percent Thursday.
According to the WSJ, no.
The WSJ notes that Q1 consensus EPS expectations have dropped about 40 cents since before April's management shuffle to a loss of 86 cents per share. Number compare with a loss of 74 cents per share reported in the prior-year period.
JCPenney revealed earlier in the month that Q1 comps would be down 16.6 percent of so and management is likely to lump (as best possible) all the bad news into one segment.
The WSJ goes on to compare JCPenney to Macy's, which reported strong Q1 results on Wednesday morning. Though a tough comparison, Macy's and JCPenny have similar store counts and were relatively comparable in 2011, before Ron Johnson took the helm at JCPenney.
After adjusting for net borrowings, Macy's trades at 0.9 times expected revenue versus 0.5 times for JCPenney.
Should JCPenney set itself on the right course and make up for about 50 of lost sales recently lost and close half the valuation gap with Macy's, shares should be up about 130 percent, or $44 per share.
Shares of JCPenney are down 2.5 percent Thursday.
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