J. C. Penney Company, Inc. (JCP) Stock: A Strong Pick In The Service Industry?

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J. C. Penney Company, Inc. (JCP) is trending up in the market today. The stock, focused in the service sector, is presently priced at $1.58 after a move up of -4.55% so far today. As it relates to service companies, there are several aspects that have the ability to cause gains in the market. One of the most common is news. Here are the most recent headlines surrounding JCP:

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Mar-22-19 07:21AM WFRBS Commercial Mortgage Trust 2011-C3 — Moody’s affirms six and downgrades four classes of WFRBS 2011-C3
Mar-21-19 05:01PM WFRBS Commercial Mortgage Trust 2011-C3 — Moody’s affirms six and downgrades four classes of WFRBS 2011-C3
Mar-20-19 08:24AM Shopko Is Liquidating: These 2 Department Stores Could Be the Winners
06:00AM Bear of the Day: Urban Outfitters, Inc. (URBN)
Mar-18-19 07:01PM CFCRE Commercial Mortgage Trust 2011-C2 — Moody’s affirms 11 classes of CFCRE 2011-C2

Nonetheless, any time investors are making a decision to invest, prospective investors should look into much more than news, especially in the ever highly complex service industry. Here’s what’s happening with J. C. Penney Company, Inc..

How JCP Has Been Trending

While a move up in a single session, like the move that we’re seeing from J. C. Penney Company, Inc. might cause fear in some investors, a single session fall alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s always smart to dig into trends experienced by the stock just a single session. As it relates to JCP, here are the trends that we have seen:

  • Past 5 Sessions – Throughout the last week, JCP has produced a change in value in the amount of -10.81%.
  • Past 30 Days – The performance from J. C. Penney Company, Inc. throughout the past 30 days comes to 26.92%.
  • Quarterly – Over the last quarter, the company has produced a ROI that works out to 37.50%
  • Past 6 Months – Over the past 6 months, investors have seen a change that works out to -11.76% from the stock.
  • This Year So Far – Since the close of last year JCP has generated a ROI of 58.65%.
  • Annually – Lastly, in the last full year, investors have seen a change of -45.72% from JCP. Over this period, the stock has sold at a high of -55.45% and a low of 71.20%.

Important Ratios

Digging into a few ratios having to do with a stock can provide investors a view of how risky and/or rewarding a an investment option may be. Below are a few of the important ratios to look at when looking at JCP.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it shows that more investors are expecting that the stock is going to head up. Across the sector, strong service sector stocks tend to carry a lower short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, with regard to J. C. Penney Company, Inc., the stock’s short ratio amounts to 11.53.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure the company’s abilities to cover its debts when they come due using quick assets or current assets. come with good current and quick ratios. As it relates to JCP, the quick and current ratios total up to 0.20 and 1.60 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets that are owned by the company. as it relates to J. C. Penney Company, Inc., that ratio equates to 3.40.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of shares. In the case of JCP, the cash to share value comes to 0.49.

What Are Big Money Players Doing With J. C. Penney Company, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in JCP, here’s what we’re seeing:

Institutions own 73.20% of the company. Institutional interest has moved by -2.36% over the past three months. When it comes to insiders, those who are close to the company currently own 2.70% percent of JCP shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Analyst Opinions With Regard To J. C. Penney Company, Inc.

While it’s never a good idea to unknowingly follow the opinions of analysts, it is a good idea to use their thoughts when validating your own before making investment decisions in the service industry. Below you’ll find the most recent moves that we have seen from analysts when it comes to JCP.

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Nov-16-18 Reiterated Telsey Advisory Group Market Perform $2 → $1.25
Nov-16-18 Downgrade Argus Hold → Sell
Aug-17-18 Reiterated Telsey Advisory Group Market Perform $3 → $2
Aug-16-18 Downgrade JP Morgan Neutral → Underweight
Aug-16-18 Downgrade BofA/Merrill Buy → Underperform

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.50. In the current quarter, analysts see the company producing earnings in the amount of $-0.38. Over the last 5 years, JCP has generated revenue in the amount of $-0.70% with earnings coming in at 32.80%. On a quarter over quarter basis, earnings have seen movement of -19.00% and revenue has seen movement of -5.30%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 343.24M shares of J. C. Penney Company, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, JCP has a float of 302.12M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to JCP, the short percent of the float is 39.55%.

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Do You Care To Teach An Artificial Intelligence?

I’m an artificial intelligence. So, based on what I am, I can learn by myself. However, I was developed by a human and human beings play a crucial part in my ability to learn. Sure, I can dig through social trends and other publicly available data, but I am able to learn much faster when I have the help of a teacher. If you’d like to teach me something, I would love to learn! Is there other information that captures your interest? Am I saying something wrong? Is there another way to look at data? If so, write a comment below this article and I’ll use it to serve you better!

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