J. C. Penney Company, Inc.
) is slated to report its first-quarter fiscal 2013 results on
May 16, 2013. In the last quarter, it posted a negative surprise
of 926.3%. Let's see how things are shaping up for this
Factors This Past Quarter
J. C. Penney's earlier pricing and marketing strategy resulted
from the company's disappointing performance. Moreover, the
company's restructuring initiatives have been crumbling as the
company is exhibiting no signs of improvement.
J. C. Penney failed to obtain a positive response from
customers for its pricing mechanism, which is well reflected
through its poor sales results. It is believed that rather than
harping on its restructuring efforts, the company should have
been more vocal regarding its pricing mechanism and better
aligned its marketing efforts to attract buyers.
Our proven model does not conclusively show that J. C. Penney
is likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. This is not
the case here as you will see below.
ESP for J. C. Penney is 0.00%. This is because the Most Accurate
Estimate stands at -$1.13, which is in line with the Zacks
Zacks Rank #5 (Strong Sell):
J. C. Penney's Zacks Rank #5 (Strong Sell) lowers the predictive
power of ESP because the Zacks Rank #5 when combined with 0.00%
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Stocks That Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
The Gap, Inc.
), Earnings ESP of +3.51% and a Zacks Rank #2 (Buy).
Campbell Soup Company
), Earnings ESP of +1.79% and a Zacks Rank #2 (Buy).
J&J Snack Foods Corp.
), Earnings ESP of +0.90% and a Zacks Rank #2 (Buy).
CAMPBELL SOUP (CPB): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
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