JCPenney: Battle-Tested Retailer

Filed under: Penney (J.C.) (JCP), Stocks to Buy

The shares of J.C. Penney Company, Inc. (JCP), first discussed here on April 13, 2009 at a price of $26.52, have meandered at/near $33 for the past three months, but just look on that sideways action as a chance to scoop-up shares of a battle-tested retailer.



JC Penney's fundamental picture remains encouraging. JC Penney has adroitly adjusted to the U.S.'s 'frugal consumer' era. The retailer has effectively aligned product quality/style with its target demographic, and also prudently and tactfully invested in new brands.



Meanwhile, good inventory management and expense controls have aided the bottom line. Modest new store expansion plans for FY2012 are also consistent with a business model that's endured amid the retail sector's rout. In other words, JCP is a retail sector survivor and will able to hold its own for what undoubtedly will be more-scarce consumer dollars in the years ahead. In FY2012, same store sales should increase 2-3.5%

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JCPenney: Battle-Tested Retailer originally appeared on BloggingStocks on Tue, 08 Feb 2011 17:00:00 EST. Please see our terms for use of feeds.

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