Why J.C. Penney Is Poised to Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store operator J.C. Penney has received an alarming one-star ranking.

With that in mind, let's take a closer look at J.C. Penney and see what CAPS investors are saying about the stock right now.

J.C. Penney facts

Headquarters (founded)

Plano, Texas (1902)

Market Cap

$3.5 billion

Industry

Department stores

Trailing-12-Month Revenue

$13.0 billion

Management

CEO Myron Ullman CFO Kenneth Hannah

Return on Equity (average, past 3 years)

(7.7%)

Cash/Debt

$930.0 million / $3.0 billion

Competitors

Kohl'sMacy'sSears Holdings


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 36% of the 1,047 members who have rated J.C. Penney believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, sikiliza, reacted to the recent ousting of CEO Ron Johnson:

And so the curtain falls on yet another attempt at reviving a dying horse. I have never been a big fan of those perpetual sale outfits including Jos. A. Bank. In a way, I think Ron Johnson tried to do the right thing by pricing things right and not having to first overprice and then discount to satiate the bargain-hunting ways of clearance sale addicts. That said, [J.C. Penney] was dealing with enormous perception issues and I couldn't picture myself walking into a [J.C. Penney] store while surrounded by the Macy's and [Nordstroms] of this world.

J.C. Penney's stock cratered under Ron Johnson's leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you're wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about JCP's turnaround -- or lack thereof. Simply click here now for instant access.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why J.C. Penney Is Poised to Keep Plunging originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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