Tag Archives: JCP

Business, Finance, Occupation & Industry

Top Analyst Upgrades and Downgrades (A, BBY, BFAM, DF, ICE, JCP, MA, QCOM, CRM, SKX, VVUS)

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By 24/7 Wall St.

Bull and Bear

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These are some of this Wednesday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

Agilent Technologies Inc. (NYSE: A) started as Outperform at Leerink Swann.

Best Buy Co. Inc. (NYSE: BBY) raised to Buy at Jefferies.

Bright Horizons Family Solutions LLC (NYSE: BFAM) was started in new coverage as follows: Buy at BofA/Merrill Lynch, Overweight at Barclays, Outperform at Credit Suisse, Buy at Stifel Nicolaus and Neutral at Goldman Sachs.

Dean Foods Co. (NYSE: DF) raised to Outperform at Credit Suisse.

IntercontinentalExchange Inc. (NYSE: ICE) raised to Outperform at KBW.

J.C. Penney Co. (NYSE: JCP) was cut to Neutral from Buy at Citigroup and was cut to Perform from outperform at Oppenheimer.

MasterCard Inc. (NYSE: MA) cut to Hold at Argus.

Qualcomm Inc. (NASDAQ: QCOM) was maintained as Buy but was removed from the prized Conviction Buy List at Goldman Sachs.

Salesforce.com Inc. (NYSE: CRM) named Bear of the Day, while all-time highs are nice but outlook may be lower at Zacks Investment Research.

Skechers USA Inc. (NYSE: SKX) named Bull of the Day as new styles and global reach are returning it to profitability at Zacks Investment Research.

VIVUS Inc. (NASDAQ: VVUS) started as Overweight at Piper Jaffray.

Here are 11 stocks which analysts expect to rise 50% to 100% (or more) over the next year.

Also, here is how only seven of the 30 DJIA stocks will take the market to 15,000.

Oppenheimer listed two transportation stocks that will keep confirming Dow Theory with transports leading the way.

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: A, BBY, BFAM, CRM, DF, ICE, JCP, MA, QCOM, SKX, VVUS

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

J.C. Penney's Big-Money Departure

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By Chris Hill, The Motley Fool

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The following video is from Tuesday’s MarketFoolery podcast, in which host Chris Hill, as well as analysts Jason Moser and Eric Bleeker, discuss the top business and investing stories.

Shares of J.C. Penney plummeted today on news that its second largest shareholder, Vornado Realty Trust, is selling almost half of its stake in the company. In this installment of MarketFoolery, our analysts discuss what it means for investors.

J.C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but investors are beginning to doubt if CEO Ron Johnson can weave the same magic that he did at Apple. 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.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Dow Closes In on All-Time High

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By Jeremy Bowman, The Motley Fool

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After a slow start today, the Dow Jones Industrial Average finished strong to close out the day with a gain of 38 points, or 0.3%. News out of China had markets down in the morning as Beijing announced strict controls to ease skyrocketing housing prices in the world’s No. 2 economy. The government said that it would begin charging a 20% capital gains tax on existing properties and implement other restrictions such as raising borrowing rates and increasing minimums for down payments. The move could slow down the construction boom in China and manufacturing and materials companies that rely on new construction. Caterpillar finished down 1.8% on the news, while Alcoa dropped 1.1% as both are highly dependent on the Chinese market.

Retail stocks led the Dow higher in the afternoon as Wal-Mart topped the leaderboard with a 2.1% gain. The world’s largest retailer seemed to get a boost from Wal-Mart Foundation President Sylvia Matthews Burrell being named the new chief of the Office of Management and Budget, the White House‘s budget arm. Burrell has served in several other government posts including as OMB deputy director under President Clinton. The retailer also said it would add 4.7 megawatts of solar power at its Ohio stores, making it that state’s largest consumer of the alternative energy source.

Home Depot also gained 1.8% on a day that the retail sector outperformed. There was no company-specific news out on the home-improvement retailer, but it continued to push its all-time high higher on the recent wave of strong news in the housing sector. The retailer will not be affected by today’s developments in China as it announced last year that it would leave its fledgling operation in the country and close its last seven stores there.

Late in the day, House Republicans introduced a plan to would save certain agencies, including the FBI and key parts of the military, from the budget cuts signed by President Obama signed on Friday. J.C Penney’s woes also continued as the troubled retailer fell 5.3% during the trading session and another 2.1% after hours on word that Vornado Realty Trust is looking to sell 10 million of its 18.6 million shares in the retailer at an asking price between $16.40 and $16.60. With J.C. Penney’s total shares outstanding at 219.5 million, the stake for sale represents nearly 5% of the company.

Finally, with Asian markets opening higher, the Dow could break its intraday record of 14,198 as early as tomorrow morning.

J.C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but investors are beginning to doubt if CEO Ron Johnson can weave the same magic that he did at Apple. 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 …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Retail Sales on Track for Lower Growth

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By 24/7 Wall St.

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After three consecutive years of 4%+ same-store sales growth in the month of February, the outlook for the month in 2013 calls for growth of 2.7%, primarily on a forecast of weaker sales at apparel and teen specialty retail stores. According to research firm Retail Metrics, projected weakness at both J.C. Penney Co. Inc. (NYSE: JCP) and Sears Holding Corp. (NASDAQ: SHLD) have led to projected decline in same-store sales of 0.1% at department stores.

The largest gains are forecast at discount stores such as Big Lots Inc. (NYSE: BIG), Costco Wholesale Corp. (NASDAQ: COST), PriceSmart Inc. (NASDAQ: PSMT) and Family Dollar Stores Inc. (NYSE: FDO).

The research firm attributes the lower comparable store sales to delays in getting refunds to taxpayers, the impact of higher payroll taxes on income, higher gasoline prices in February, and cooler weather which delayed the start of sales of spring clothing.

Retail same-store sales figures are due to be released later this week.

Filed under: 24/7 Wall St. Wire, Apparel, Retail Tagged: BIG, COST, FDO, JCP, PSMT, SHLD

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Costco Dodges Economic Bullet

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By 24/7 Wall St.

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Costco Wholesale Corp.’s (NASDAQ: COST) annual sales run above $100 billion, more than twice J.C. Penney Co Inc.’s (NYSE: JCP) and Macy’s Inc.’s (NYSE: M) combined, and nearly 40% of those of mega-retailer Target Corp. (NYSE: TGT). Yet, its sales have not been dented by the current downturn or slowdown in sales at most of the nation’s largest retailers. Costco reported net sales of $9.35 billion for the month of January, the five weeks ended February 3, 2013, an increase of 7% from $8.74 billion during the similar period last year.

Costco may not have the perfect model for retail success, but it is close.

At the heart of Costco’s lack of vulnerability is its membership model — a kind of club exclusivity for the middle class. Its annual membership fees range from $55 to $110 a year. That is not much of a buy-in to shop its massive warehouses, whether the shopper is an individual or a company. Even Tiffany & Co. (NYSE: TIF) and other high-end retailers do not have a price of admission. Whether membership gives access to special value or not, it appears to create that illusion.

There also may be a belief among those who invest in Costco memberships that size matters. The average Costco location covers 143,000 square feet, much larger than the average Wal-Mart Stores Inc. (NYSE: WMT) location, which measures only 102,00 square feet. Does a Costco store contain more products at low price because of its size. Probably not, but the size may create that impression.

The last and most important thing Costco offers is customers is a satisfaction safety net, which covers almost any level of problems buyers have with products or memberships. All a member has to do is claim that a product or a membership does not measure up and Costco promises a refund — at 100% of the purchase price.

Costco has effectively made a promise to its shoppers — pay to be a member and that membership will be worth more than its weight in gold — even if gold is so expensive now to be beyond most people’s reach.

Filed under: 24/7 Wall St. Wire, Retail Tagged: COST, JCP, M, TIF, WMT

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why J.C. Penney Is Poised to Keep Plunging

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By Brian D. Pacampara, The Motley Fool

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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 a distressing 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

$3.9 billion

Industry

Department stores

Trailing-12-Month Revenue

$13.0 billion

Management

CEO Ronald Johnson (since 2011)
CFO Kenneth Hannah (since 2012)

Return on Equity (average, past 3 years)

(7.7%)

Cash/Debt

$930 million / $3.0 billion

Competitors

Kohl’sMacy’s Sears Holdings

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

On CAPS, 34% of the 1,006 members who have rated J.C. Penney believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star LouisFBrooks, succinctly summed up the J.C. Penney bear case for our community:

That sound you hear is the death rattle for a 111 year old retailer. The company is bleeding money with no signs of stopping and sales are dropping. Management appears to be confused on what will save the company and keeps changing directions compounding the problem. This one is [going] the way of TG&Y and [Kmart].

J.C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but investors are beginning to doubt that the comeback is actually coming. 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 — and as a bonus, you’ll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Amazon and Apple Crush Competition in New Mobile Survey

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By 24/7 Wall St.

Amazon.com logo

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Amazon.com Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) place so high on most customer satisfaction surveys that the repetition has made the conclusions commonplace. Unfortunately for several financially battered retailers, their stumbling has not been helped by their satisfaction grades. The trends, both good and bad, have extended to mobile e-commerce.

Research firm Foresee issued its “ForeSee Mobile Satisfaction Index: Holiday Retail Edition.” The results are not terribly different from the Foresee e-commerce data for the same period. Retailers who do well online also do well with mobile activity. Of the 25 companies included:

Amazon tops the list at 85, with Apple (83), and QVC (83) close behind. Rounding out the top five are NewEgg (80) and Victoria’s Secret (80).

Almost no one has heard of PC hardware and parts company NewEgg. The balance of the companies are well known. Amazon had better be at the top of the list, for its own sake, since it has no physical stores to speak of. QVC does not either, because its other medium for sales is television. Apple and Victoria’s Secret must just try harder, although the popularity of their products may get mobile e-commerce buyers to have positive views of the merchandise under any circumstances.

Retailers that are in steep decline, in general, do not do well in the Foresee results. The Sears division of Sears Holdings Corp. (NASDAQ: SHLD) rates just one spot from the bottom. Also-ran discounter Overstock.com Inc. (NASDAQ: OSTK) also does poorly, and troubled online retailer Gilt does very badly as well.

In the range of merely mediocre are Wal-Mart Stores Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT), each of which have huge traffic and are among the top 50 most visited sites in the United States, according to Comscore. Their volumes of business are such that mid-tier performance in the Foresee survey probably does not hurt them much. Also in the middle of the rankings are Best Buy Co. Inc. (NYSE: BBY) and J.C. Penney Co. Inc. (NYSE: JCP), each of which needs to do better in e-commerce and in physical store activity to keep away from trends that already have caused questions about their viability.

On the whole, the companies that did poorly in the Foresee research cannot afford to.

Methodology: In a survey of more than 6,200 consumers collected during the peak holiday shopping season between Thanksgiving and Christmas, the retail juggernaut scored highest among 25 of the top mobile commerce companies. The report shows that consumer satisfaction with the mobile retail experience is improving, as the Index climbs two points since last holiday season to 78 on a 100-point scale.

mobile-exp-holiday-2013-foresee

Filed under: 24/7 Wall St. Wire, Internet, Retail Tagged: AAPL, AMZN, BBY, JCP, OSTK, SHLD, TGT, WMT

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Are E-commerce Sales Really So Good?

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By 24/7 Wall St.

Online Shopping

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Research firm comScore reported about 2012 that:

For the full year, U.S. retail e-commerce sales reached $186.2 billion, an increase of 15 percent — the strongest annual growth rate since before the recession. Q4 2012 sales grew 14 percent year-over-year to $56.8 billion, marking the first ever $50 billion quarter. It also represents the thirteenth consecutive quarter of positive year-over-year growth and ninth consecutive quarter of double-digit growth.

As an aside, it is worth noting that Amazon.com Inc.’s (NASDAQ: AMZN) sales for the past full year were $51.7 billion, up 23%, which colors the national numbers in a way that makes e-commerce sales outside Amazon less positive.

Even without the Amazon-effect, e-commerce has been less successful than many people suppose. Sales per quarter in 2007 averaged $30 billion and grew at a rate of more than 20%. The average sales by quarter in 2012 were about $48 billion on average. The positive change is only 60% over the five years, which is hardly a torrid pace.

E-commerce is supposed to be the salvation of the retail industry, although the salvation has been uneven. Experts says that companies such as Best Buy Co. Inc. (NYSE: BBY) and Barnes & Noble Inc. (NYSE: BKS) have been ruined. Online sales have augmented the advance of other retailers, including Wal-Mart Stores Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL).

E-c0mmerce sales improvement actually may slow considerably in the years ahead. Among the reasons are that bricks-and-mortar retailers have learned the tricks of price matching and free overnight delivery. These retailers always will retain the benefit that some people want to see and feel what they buy before they buy it.

The other enemy of e-commerce is that its success has been so uneven. For every Amazon there is a Best Buy, or worse, a J.C. Penney Co. Inc. (NYSE: JCP) where online sales are actually shrinking. The future of e-commerce can be seen in both its victories and its mediocre, or failed, results.

E-commerce may have been the “next big thing” for a while. It future will be much more mixed.

Filed under: 24/7 Wall St. Wire, Internet, Retail Tagged: AAPL, AMZN, BBY, BKS, JCP, WMT

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Source: FULL ARTICLE at DailyFinance

News, Politics, Government

eBay: A Retail Growth Leader Grabs Market Share as JC Penney Loses

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By Walter Loeb, Contributor With JCPenney  sales down $2.7 billion through 3Q12, and another ugly quarter likely to be reported on February 27, it has begged the question of who is picking up the sales JCP is losing?  As we’ve written previously, one would  think Kohl’s would gain market share, given they target the same customer and use a promotional strategy understood by that consumer.  But Kohl’s results suggest they are not winning JC Penney share.  As the new retail growth leaders, such as eBay and Amazon, begin reporting their 4Q results, we can see their superior growth rates and it becomes clear that they are the one winning market share.
Source: FULL ARTICLE at Forbes Latest