Will J.C. Penney Company, Inc. (JCP) Miss Earnings?

Will J.C. Penney Company, Inc. (JCP) Miss Earnings?
By J.C. Penney (Brand New design website See article here) [Public domain], <a href="https://commons.wikimedia.org/wiki/File%3AJCPenney_2012_logo.svg">via Wikimedia Commons</a>

J.C. Penney Company, Inc. (NYSE:JCP) is slated to report its fourth-quarter fiscal 2013 results on Feb 26, 2014. In the last quarter, it posted a positive surprise of 2.7%. Let’s see how things are shaping up for this announcement.

Factors This Past Quarter

J. C. Penney posted narrower-than-expected loss for the third quarter of fiscal 2013. The company took several strategic initiatives to drive traffic and conversion and to better compete with its peers.

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Earnings Whispers?

Our proven model does not conclusively show that J. C. Penney is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here, as you will see below.

Negative Zacks ESP: ESP forJ.C. Penney Company, Inc. (NYSE:JCP)  is -3.80%. This is because the Most Accurate estimate stands at a loss of 82 cents, while the Zacks Consensus Estimate is pegged at a loss of 79 cents a share.

Zacks Rank #4 (Sell):J.C. Penney Company, Inc. (NYSE:JCP) ’s Zacks Rank #4 (Sell), when combined with a negative ESP of 3.80%, makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks That Warrant a Look

Here are some other companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat:

Texas Roadhouse, Inc. (TXRH), Earnings ESP of +8.70% and a Zacks Rank #2 (Buy).

Foot Locker, Inc. (FL), Earnings ESP of +8.00% and a Zacks Rank #3 (Hold).

Home Depot Inc. (HD), Earnings ESP of +1.41% and a Zacks Rank #3 (Hold).


FOOT LOCKER INC (FL): Free Stock Analysis Report

HOME DEPOT (HD): Free Stock Analysis Report

PENNEY (JC) INC (JCP): Free Stock Analysis Report

TEXAS ROADHOUSE (TXRH): Free Stock Analysis Report

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Zacks Investment Research

J.C. Penney Company Inc. JCP

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