Sector Update: Consumer

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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 0.3%.

In company news, shares of J.C. Penney Company Inc. ( JCP ) rose Monday after a J.P Morgan analyst in a new research note gave high marks to management at 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 ( BKW ) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
Referenced Symbols: JCP , BKW

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