Top Consumer Stocks
Consumer stocks were moderately higher with shares of consumer
staples companies in the S&P 500 rising about 0.4%. Shares of
consumer discretionary firms in the S&P 500 were ahead about
In company news, shares of J.C. Penney Company Inc. (
) rose Monday after a J.P Morgan analyst in a new research note
gave high marks to management over the department-store retailer's
decision to close many of its under-performing locations.
According to JPMorgan analyst Matthew Boss, the stock "sets up
well" for investors to own through year's end, believing a "large
scale" restructuring of the company - including more than 100 store
closings - likely in early 2015.
By Boss' reckoning, each 100 stores JCP decides to close would
add around $3 in equity value for the stock, with the JPMorgan
analyst reiterating his $11 price target. Year-to-date, the stock
is up about 11%, outpacing a 7.6% gain for the S&P 500.
JCP's "story stands at a pivotal crossroads," he wrote, "with
today's mid-single-digit top-line pace of recovery questioned
versus the 33% revenue drop the past three years."
Boss also views the company's upcoming analyst day in October as
a positive catalyst.
JCP shares were up nearly 5% this afternoon at $10.68 apiece,
just off its session high of $10.76 a share. Over the past 12
months, the stock has traded within a range of $4.90 to $14.65 a
share, dropping about 20.5% over that span.
In other sector news,
(+) THI, (+21.4%) Burger King (
) confirms discussions about a potential strategic transaction,
also lifting BKW almost 22% higher.
(-) GEF, (-5.8%) Lowers FY14 EPS outlook to $1.98 to $2.08 from
its prior guidance expecting earnings this year in a range of $2.48
to $2.80 per share. Street is at $2.81.
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