Stock Research and Analysis

by Paul Swinand
We take a long-term view when assessing whether J.C. Penney can build competitive advantages that would warrant an economic moat rating. While we assume the current transformation plans continue and are ultimately successful, we question the sustainability   Read more 

Bulls Say

We believe J.C. Penney's cash flow and liquidity are sufficient to pull it through even current tough times.
As new merchandise flows in throughout 2013 and 2014, sales and margins will improve.
The option to be promotional to drive sales is being redeployed thoughtfully. With a much-improved cost structure, any sales gain should benefit free cash flow. Read more 

Bears Say

J.C. Penney is losing out to higher-end merchants like Macy's and specialty stores that are now offering lower prices and increased value, while more price-sensitive consumers are sticking to basics at stores like Target and Wal-Mart.
The lingering effects of the recession and long-term costs of government fiscal problems will be disproportionately borne by middle-class Americans, J.C. Penney's core customers.
Despite bringing back sales and promotions, the rate of sales declines at J.C. Penney suggests that customers will be hard to win back. Read more 


Managers that were part of Ron Johnson's Apple team have now either left the company or are in the process of leaving. Former CEO Mike Ullman has returned to lead J.C. Penney, after leaving to make room for Johnson previously. Given that Ullman decided   Read more 


Founded in 1902, J.C. Penney is a national department store chain that offers quality products at value prices. As of year-end 2012, the company operated in every state   Read more 

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