What is the outlook for JCPenney stock??

Question

it has dramatically went up here in the last five days? will it continue? will it go back down, any ideas?

Answer 1

This was prob short covering. I'd be a seller.

The economy is not out of the woods. And retail is on tract for the worst years in memory.

Answer 2

Not even professional traders know for sure.

From just a brief look at yahoo finance, it has just bounced from deep and perhaps undeserved lows (it has fallen over 60 percent) on higher volume.  However, it has not broken its bear market downtrend line.

The key thing you should be thinking about here is their earnings announcement on Friday.  Past technicals don't mean as much before such a big news event.  It really may hold or trend before the announcement (of course that doesn't help, haha).

Personally, I had a trade on Wal Mart when they posted poor sales (market interpretation, I didn't care about the real numbers) just last week, so I would not be surprised if JCPenney followed suit.

Take those words for what they're worth - indecision.  Possible bottom but overall negativity all around.  You might just want to wait for earnings to come out, figure out if they are good or bad, and invest in the company if they are good after the initial "shock" settles (this often takes a few days).

Good luck.

Answer 3

In this market it will be all over the place. Some reasons could be as simple as people moving money from bonds and need a place to park and the Penney sounded good the moment.

Longer-term, lots of "analysts" don't like it, but at least one I read lists it buy. Considering what the company does, I think the "back to school" sales were the current spike's most appropriate rationale.

I think it is a good company and deserves to be in the ball park for any value investor, but not on the short list until we are sure that the recession talk starts using the past tense to the verbage. It is certainly no trader's paradise, but for long term investment it is good -- for rising economic periods. (and I'm not convinced we are there yet). So buy, if you buy, for longer term than just a spike over a day or two.