JC Penney Company Inc  (JCP) Trade Now »     Rate JCP  -  Discuss JCP  -  Add to Watch List        

I am recommending the sell of the retailing sector. Why? The reason is simple, no one is buying anything right now. When was the last time you heard of a friend, neighbor, or colleague bought a new car? I tell you that it is obvious all over America (if not the world) put discretionary spending on perma hold a couple of weeks ago. You can rest assured that there isn't a retailer in America (even Walmart) that will have a great quarter.

The latest economic developments seem to support a rebound to US consumer confidence and hence improvement to retailers' earnings. The immediate drivers that come to mind include;

 - Strength of the US$ against EUR and GBP

 - Decrease in oil prices will help improve US economic indicators due to the dependence on oil and increase household disposable income

Stock Upgrade of the Day

Deutsche Bank upgrades JC Penny (NYSE: JCP ) from Hold to Buy and raises their price target to $46.  DB said sales trends have improved, maybe due to stimulus checks or the weather.  They are calling JCP a 'value story', with a compelling risk/reward profile.

Shares of JCP are down 50% over the last year.

Traders at Palma are Bullish on JCP

www.palmaresearch.com/default.aspx?viewreport=JCP

U.S. stocks rose Friday, for their second consecutive weekly advance, as upbeat earnings reports from a number of companies, including Walt Disney and JC Penny, spurred optimism that the economic recovery is gaining momentum.  A dip in the value of dollar, on concerns consumer spending is likely to remain bleak, sent shares of commodity-related companies up. 

Filed under: Analyst reports, Analyst upgrades and downgrades, Sprint Nextel Corp (S), Penney (J.C.) (JCP), Research in Motion (RIMM), Analyst initiations, Nordstrom, Inc (JWN)

Analyst upgrades:

For Immediate Release

Chicago, IL – November 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JC Penney Company Inc. (JCP), Toyota (TM), Honda (HMC), EnCana (ECA) and Chesapeake (CHK).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

Filed under: Target Corp. (TGT), Penney (J.C.) (JCP), American Express (AXP)

What's on your Christmas wish list? If the National Retail Federation is right, gift cards are probably holding a respectable place toward the top of the list. These little pieces of plastic are requested most this time of year, and they have the added perk of allowing people to get what they want instead of money wasted on presents that sucks. This trend may give retailers a hand this year, as they'll be able to keep their inventories down.

Filed under: Earnings reports, Forecasts, Home Depot (HD), Target Corp. (TGT), Sears Holdings (SHLD), Gap Inc (GPS)

On the heels of last week's better-than-expected earnings results from retailers Abercrombie & Fitch Co. (ANF), Kohl's Corp. (KSS), Macy's Inc. (M), Urban Outfitters Inc. (URBN) and Wal-Mart Stores Inc. (WMT) -- as well as disappointing numbers from Blockbuster Inc. (BBI) and JCPenney Co. Inc. (JCP) -- the coming week will bring results from more shopping mall and strip mall favorites.