J. C. Penney Company, Inc.
), a department store retailer, is slated to report its
first-quarter fiscal 2014 results on May 15, 2014. In the last
quarter, it posted a positive surprise of 13.9%. Let's see how
things are shaping up for this announcement.
Factors Influencing the Quarter
J. C. Penney's endeavors to recoup and give itself a major
facelift seem to be paying off well as it posted
narrower-than-expected loss for the fourth quarter of fiscal 2013.
We believe that although the company has brought back promotions,
and is focusing on improving assortments, a better marketing
strategy and the JCP Rewards program, all these will take time to
bring the company back on the growth trajectory. Moreover, the soft
economic recovery and erratic consumer behavior may also act as
Our proven model does not conclusively show that J. C. Penney is
likely to beat earnings estimates 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.
ESP for J. C. Penney is 0.00%. This is because both the Most
Accurate estimate and the Zacks Consensus Estimate stand at a loss
of $1.26 per share.
J. C. Penney has a Zacks Rank #4 (Sell), which lowers the
predictive power of ESP. 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
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:
Skechers USA Inc.
) has an Earnings ESP of +12.20% and a Zacks Rank #1 (Strong
Foot Locker, Inc.
) has an Earnings ESP of +1.91% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +4.55% and a Zacks Rank #2 (Buy).
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FOOT LOCKER INC (FL): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
WILLIAMS-SONOMA (WSM): Free Stock Analysis
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