Is JCP JCPenney a good stock to buy?

Question

Is JCP JCPenney a good stock to buy?

Answer 1

JCP has some price support at 28; so that is where I would buy if I wanted to buy it.

If I bought it and the price went below 26 I would sell it.

If the price jumped to 32.50 within in two months I would sell it.

JCP is a middle retailer, not a discount and not a high-end. Whatever it sells you can buy something very similar from somebody else. A super competitive industry with low margins.

If I were to buy a retail stock I would buy JWN at 28 instead of JCP even though it has a higher PE and a lower yield.

I really don't like retail. If I did invest in retail I think I would buy RTH an exchange traded retail fund.

Good luck.

Answer 2

I would say its a hold.  Based on next year's expected earnings their expected return is about 7 percent.

Answer 3

They arent bad...but they dont seem to fair well when the econmy is rough, if you look at the charts.

Personally, i think you could find some better stocks out there, however, if you strongly like this company, go for it, they seem to rebound nicely after struggling times, but it can also go lower, before it gets higher, so be prepared for that, if your willing to take the risk.  

They are a pretty well known company so i cant really see them going under.  

Remember not to put all your money into one basket though.  Diversify....

Answer 4

yes

Answer 5

not if consumer spending is 70% of the economy and consumers are strapped