Sears Holding (NAS: SHLD) has a lot of potential to live up to its new moniker of "misunderstood value turnaround." The company is seen with deeply undervalued real-estate assets, which could be unlocked if the company creates a better retail experience and, by proxy, increases the value of the surrounding real estate. 

However, Sears hasn't been the best allocator of capital in recent years, and it doesn't seem to have a comprehensive turnaround roadmap like its other turnaround relative, J. C. Penney (NYS: JCP) .

I see Sears likely leaving most of its potential on the table and disappointing investors going forward.


Just because Sears may not right its ship doesn't mean other down-and-out retailers are destined for the same fate. For investors wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's new must-read report on the company. Learn everything you need to know about JCP's turnaround, and as an added bonus, you'll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.

The article This Retailer Could Save Itself -- but It Won't originally appeared on Fool.com.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Home Depot and Lowe's Companies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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