JCPenney Stock: Increased Momentum in 2018?

Recent movement in JCPenney stock

JCPenney (JCP) stock started 2018 with a 10.8% rise in its stock price on January 2, 2018. Despite reporting strong holiday sales, JCPenney stock fell 0.3% and 2.2% on January 4 and January 5, respectively. JCPenney reaffirmed its sales guidance for fiscal 2017 after delivering strong holiday numbers.

On January 4, JCPenney reported a 3.4% rise in its same-store sales for the 2017 holiday season—the nine-week period ending December 30, 2017. Macy’s (M) reported a 1.0% rise in its 2017 holiday same-store sales, but its stock fell 3.3% on January 4.

JCPenney Stock: Increased Momentum in 2018?

How was 2017?

JCPenney stock fell 62% in 2017. Its department store peers Macy’s and Nordstrom (JWN) fell 29.7% and 1.1% in 2017, while Kohl’s (KSS) stock rose 9.8%. JCPenney underperformed the S&P 500 Index, which rose 19.4% in 2017.

In the past few quarters, major department stores have been facing intense competition from Amazon (AMZN) and other online retailers. TJX Companies (TJX) and other off-price retailers like Ross Stores (ROST) have made it difficult for department stores to perform well. Department stores are taking several actions to improve their sales amid the changing retail environment. However, investments in online infrastructure and growth investments are putting pressure on department stores’ margins.

In this series

In this series, we’ll discuss what analysts expect from JCPenney’s fiscal 4Q17 and fiscal 2017 sales following the announcement of its holiday sales growth. We’ll also discuss JCPenney’s earnings expectations and the revisions in analysts’ target price.