J.C. Penney Company, Inc. (NYSE:JCP) Next Two Years Of Arrested Growth


Dallas, Texas 12/23/2013 (FINANCIALSTRENDS) – J.C. Penney Company, Inc. (NYSE:JCP) has definitely made it round the corner, if latest financial numbers for this now-recovering retailer are an indication. With each passing day, JCP has found renewed interest by analysts as well, with the latest in the line- Cleveland Research batting big for the retailer. Channel checks are  apparently telling a green story as well, for the Christmas shopping season, especially with comparable store sales trends!

However, not all analysts were willing to vouch for this retail seller.

Goldman Sachs was playing Scrooge, lowering its price target to $9.50 from its earlier $11. If Goldman Sachs will say it, how far away will be Wells Fargo. Yes, Wells Fargo too decided that the sales figures were all a bit too unscientific.

J.C. Penney Company, Inc. (NYSE:JCP), however, has some indirect good news with Sears likely to crumble. All it now requires is for the retailer to bring back its private brands and hold out on its new-confidence-boosting funding and work its strategy. Analysts also consider the fact that nearly every mall has seen lower footfall s and the slump in retail sales is not specific only to JCP.

J.C. Penney Company, Inc. (NYSE:JCP) does have more exciting news. It’s online sales are slowing moving upwards but not as significant as to make an impact on the ecommerce industry.

Given the increase in number of discount-offering companies in the ecommerce segment – like TJX Companies, Ros Stores and even Stein Mart, the breaking-down of some of the traditional apparel retailers like Loehnmann’s is not surprising! The question now, is how far removed is J.C. Penney Company, Inc. (NYSE:JCP) from this aggressive-pricing scenario and how quickly will it be able to rewrite its story back to profits.

If banks can hold out on the debts for the next two years, and JCP can crank its private labels to bring in that much required value to its apparels, then the slow march to growth may not be far-off!