J. C. Penney Company, Inc.
) is slated to report its fourth-quarter fiscal 2013 results on
Feb 26, 2014. In the last quarter, it posted a positive surprise
of 2.7%. Let's see how things are shaping up for this
Factors This Past Quarter
J. C. Penney posted narrower-than-expected loss for the third
quarter of fiscal 2013. The company took several strategic
initiatives to drive traffic and conversion and to better compete
with its peers.
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 -3.80%. This is because the Most Accurate
estimate stands at a loss of 82 cents, while the Zacks Consensus
Estimate is pegged at a loss of 79 cents a share.
Zacks Rank #4 (Sell):
J. C. Penney's Zacks Rank #4 (Sell), when combined with a
negative ESP of 3.80%, 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 these have the right combination of elements to post
an earnings beat:
Texas Roadhouse, Inc.
), Earnings ESP of +8.70% and a Zacks Rank #2 (Buy).
Foot Locker, Inc.
), Earnings ESP of +8.00% and a Zacks Rank #3 (Hold).
Home Depot Inc.
), Earnings ESP of +1.41% and a Zacks Rank #3 (Hold).
FOOT LOCKER INC (FL): Free Stock Analysis
HOME DEPOT (HD): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis
TEXAS ROADHOUSE (TXRH): Free Stock Analysis
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