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Why JCPenney Stock Rose 15% on Friday

Sirisha Bhogaraju - Author

Nov. 13 2017, Updated 1:00 p.m. ET

Stock rose

JCPenney (JCP) stock rose 15.3% to $3.17 on Friday, November 10, in reaction to the company’s results for fiscal 3Q17, which ended on October 28, 2017. The company surprised its investors with higher same-store sales in fiscal 3Q17 after reporting a decline for four consecutive quarters. The company also reported a lower-than-expected loss per share on an adjusted basis compared to what analysts anticipated.

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Stock still down YTD

Stocks of JCPenney and its department store peers are in the red on a YTD (year-to-date) basis as the sector continues to struggle in a tough retail environment. As of November 10, JCPenney stock was down 61.9% on a YTD basis. The stocks of Macy’s (M), Nordstrom (JWN), and Kohl’s (KSS) have fallen 44.2%, 16.5%, and 12.8%, respectively, since the start of the year.

JCPenney and its peers lag the S&P 500 Index, which has risen 15.3% on a YTD basis.

Analysts’ recommendations

As of November 10, JCPenney stock was rated “buy” by two out of 21 analysts covering the stock. About 86%, or 18 analysts, have a “hold” rating, and one analyst has a “sell” recommendation. On November 10, Craig-Hallum lowered its price target for JCPenney stock to $4.00 from $5.00. On the same day, Gordon Haskett raised its price target to $3.50 from $3.00.

As of November 10, the 12-month price target for JCPenney stock was $3.60, which indicates a 13.6% upside potential.

Series overview

This series on JCPenney’s fiscal 3Q17 results will discuss the company’s earnings, sales, and margins in detail. We’ll also discuss the company’s growth strategies in the concluding part of this series.

Let’s begin with a discussion on the company’s bottom line in the next part of this series.


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