J. C. Penney Company, Inc.
) is slated to report third-quarter fiscal 2013 results on Nov
20, 2013. In the last quarter, it posted a negative surprise of
91.2%. Let us see how things are shaping up for this
Factors this Past Quarter
J. C. Penney has been in troubled waters for quite some time
and is grappling with waning revenues and higher losses. The
company's restructuring initiatives have been crumbling as it is
exhibiting no signs of improvement. The company remained in the
red with adjusted loss per share of $2.16 in the second quarter
of fiscal 2013. The quarterly sales of $2,663 million fell 11.9%
year over year.
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
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
Negative Zacks ESP:
ESP for J. C. Penney is -4.84%. This is because the Most Accurate
Estimate is -$1.95 and the Zacks Consensus Estimate is
Zacks Rank #3 (Hold):
J. C. Penney's Zacks Rank #3 (Hold) lowers the predictive power
of ESP. The Zacks Rank #3 when combined with a negative 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:
) with Earnings ESP of +1.11% and a Zacks Rank #1 (Strong
Lumber Liquidators Holdings, Inc.
) with Earnings ESP of +1.39% and a Zacks Rank #2 (Buy)
Michael Kors Holdings Limited
) with Earnings ESP of +1.16% and a Zacks Rank #2 (Buy)
HANESBRANDS INC (HBI): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
LUMBER LIQUIDAT (LL): Free Stock Analysis
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