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Can J. C. Penney (JCP) Keep the Earnings Streak Alive This Quarter?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider J. C. Penney Company, Inc.JCP , a firm in the Retail-Regional Departmental Stores industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, JCP has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, JCP expected to incur a loss of 50 cents per share, while it actually produced a loss of 41 cents per share, a beat of 18.0%. Meanwhile, for the most recent quarter, the company looked to deliver loss of 58 cents per share, when it actually saw loss of 47 cents per share instead, representing a 18.9% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for J. C. Penney. In fact, the Earnings ESP for JCP is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for JCP, as the firm currently has a Zacks Earnings ESP of 29.17%, so another beat could be around the corner.

This is particularly true when you consider that JCP has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that JCP could see another beat at its next report, especially if recent trends are any guide.

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PENNEY (JC) INC (JCP): Free Stock Analysis Report

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


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

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