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Stock Market & Financial Investment News

News Breaks
August 15, 2014
10:30 EDTM, JCP, KSS, JWNJ.C. Penney falls despite posting a narrower than expected Q2 loss
Shares of retailer J.C. Penney (JCP) are lower this morning despite posting a narrower than expected loss for the second quarter. WHAT'S NEW: J.C. Penney's Q2 adjusted earnings per share was a loss of 75c per share, which was better than analysts' consensus of a 93c loss. The company's Q2 revenue came in at $2.8B, which narrowly beat analysts' consensus of $2.79B. Same store sales for the quarter increased 6% and online sales were up 16.7% compared to the same period last year. Chief Executive Myron Ullman said that the company's turnaround initiatives continued to produce improved financial results. WHAT'S NOTABLE: Looking ahead, J.C. Penney forecast third quarter SSS to be up mid-single digits, while Q3 gross margins are expected to fall in line with Q2. SG&A expenses are anticipated to be slightly above last year's levels. For fiscal year 2014, the company expects SSS to be up mid-single digits, while gross margin is seen to improve significantly compared to last year. The retailer is expecting profitable sales this back-to-school season. ANALYST REACTION: Maxim analyst Rick Snyder said that while J.C. Penney had a quarter which surpassed expectations, he still feels that difficult comps lie ahead. Snyder said that even though the company guided free cash flow to be positive, the projection is a one-time inflow and is not likely to be repeated in the coming years. He is modeling free cash flow to be up only modestly even past the end of the year. The firm maintains a Hold rating on the stock. Piper Jaffray analyst Neely Tamminga said that a company turnaround is "very much underway" and that it is poised to regain $2B-$3B of its $6B revenue loss after a management shift. He continues to feel that the retailer is positioned to improve cash flow, sales and margins over time. Tamminga believes that the retailers' positive outlook for Q3 comps indicate an optimistic outlook for back-to-school season. The firm keeps an Overweight rating on the shares with a price target of $12. Wells Fargo analyst Paul Lejuez said that even though gross margin comps proved notably and gross profit dollars increased by 25%, he feels that there isn't any reason why anyone should "get too excited" about J.C. Penney since they lost 73c per share excluding the gain on sale of land. He maintains his opinion that the current valuation is stretched and keeps an Underperform rating on the company's shares with a $5-$6 price target. PRICE ACTION: In morning trading, J.C. Penney fell 26c, or 2.67%, to $9.48, reversing earlier gains. The stock has lost approximately 32% over the past twelve months. OTHERS TO WATCH: J.C. Penney peer Macy's (M), which reported its earnings earlier this week, is down almost 1% this morning, while Nordstrom (JWN), which reported in-line results yesterday, is down almost 4%. Kohlís (KSS) is down 0.7%.
News For JCP;JWN;KSS;M From The Last 14 Days
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September 1, 2015
07:04 EDTMThe Children's Place names Marla Malcolm Beck to board
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August 31, 2015
11:07 EDTMMacy's announces collaboration with Nineteenth Amendment
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10:48 EDTJCPJ.C. Penney rises after analyst upgrades stock, calls company 'self-help story'
Shares of retailer J.C. Penney (JCP) saw a boost in morning trading after an analyst from Deutsche Bank upgraded his rating on the company's shares, remarking on the company as a "self-help story." WHAT'S NEW: Deutsche Bank analyst Paul Trussell this morning upgraded J.C. Penney to Buy from Hold. Trussell also upgraded his price target to $12 from $10, noting that the company has already improved its merchandise mix and is now moving toward better pricing and fewer markdowns. Trussell said that the company's target of mid-single digit same-store sales growth looks "achievable" and its brands and assortment "look right." The analyst added that Marvin Ellison, the company's chief executive officer, is "driving the next step" to "bring JCP up the curve in pricing and markdown optimization, supply chain, leveraging IT and reducing corporate redundancies." Trussell, who also said he views the company as a "self-help story with multiple levers to pull," maintained "slightly" conservative estimates given the challenging competitive environment, but sees meaningful upside to the stock. WHAT'S NOTABLE: Other analysts have been relatively bullish on J.C. Penney shares in recent weeks after the company reported better than expected results for the second quarter on August 14. At that time, J.C. Penney reported a loss per share of 45c on revenue of $2.88B and said it expects to be free cash flow breakeven in fiscal year 2015. Additionally, the retailer backed its FY15 SSS view of up 4%-5% and said on its earnings conference call that it expects third quarter SSS to grow sequentially from Q2. J.C. Penney also expressed "confidence" in its ability to meet its $1.2B EBITDA target by 2017. On August 17, Piper Jaffray analyst Neely Tamminga raised her price on the company's shares to $17 from $15. Tamminga said that the company showed the ability for the second straight quarter to reach EBITDA targets regardless of top-line performance. The Piper analyst said she continues to rate the company a top pick for 2015. The same day, B. Riley analyst Jeff Van Sinderen initiated coverage of J.C. Penney with a Buy rating and a $12.50 price target, saying he views Penney as a "speculative turnaround" story and believes the company's "substantial" real estate assets partially offset its heavy debt load. The Fly notes that CEO Marvin Ellison will be speaking at Goldman Sachs 22nd Annual Global Retailing Conference on September 9. PRICE ACTION: J.C. Penney shares are up 3.24% to $9.23 in morning trading.
10:01 EDTJCPOn The Fly: Analyst Upgrade Summary
Today's noteworthy upgrades include: 58.com (WUBA) upgraded to Overweight from Underweight at Morgan Stanley... AU Optronics (AUO) upgraded to Outperform from Underperform at Bernstein... Asbury Automotive (ABG) upgraded to Neutral from Underperform at Buckingham... Astec (ASTE) upgraded on upcoming catalysts at Stifel... Baidu (BIDU) upgraded to Buy from Hold at Jefferies... Bob Evans (BOBE) upgraded to Sector Weight from Underweight at KeyBanc... CNOOC (CEO) upgraded to Buy from Neutral at BofA/Merrill... Dover (DOV) upgraded on valuation, headwinds bottom at Bernstein... Envestnet (ENV) upgraded to Outperform from Market Perform at Avondale... Generac (GNRC) upgraded to Outperform from Market Perform at William Blair... Gold Fields (GFI) upgraded to Sector Perform from Underperform at Scotia Howard Weil... Goldman Sachs (GS) upgraded to Buy from Hold at Evercore ISI... Intel (INTC) upgraded to Outperform from Market Perform at Northland... J.C. Penney (JCP) upgraded to Buy from Hold at Deutsche Bank... Leggett & Platt (LEG) upgraded to Outperform from Market Perform at Raymond James... Morgan Stanley (MS) upgraded to Buy from Hold at Evercore ISI... Newmont Mining (NEM) upgraded to Outperform from Sector Perform at Scotia Howard Weil... Pan American Silver (PAAS) upgraded to Outperform at Scotia Howard Weil... QLogic (QLGC) upgraded to Buy from Hold at Summit Research... Stanley Black & Decker (SWK) upgraded to Outperform from Neutral at Macquarie... Telefonica Brasil (VIV) upgraded to Overweight from Equal Weight at Morgan Stanley... Tenet (THC) upgraded to Outperform from Market Perform at BMO Capital... Twitter (TWTR) upgraded to Buy from Neutral at SunTrust... UIL Holdings (UIL) upgraded to Hold from Sell at Argus... Vocera (VCRA) upgraded to Outperform from Market Perform at Leerink... Wisconsin Energy (WEC) upgraded to Conviction Buy from Buy at Goldman.
09:48 EDTJCPJ.C. Penney tests recent range highs
The shares are bucking the broader market trend and heading higher, last up over 1.8% to $9.10. The next level of major resistance would be at $9.42, a high that has not been met since April. Support is at $9.03. A breakout above $9.42 would break the stock out of a long base, which would be technically bullish for future price.
09:24 EDTJCPOn The Fly: Pre-market Movers
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06:54 EDTJCPJ.C. Penney upgraded to Buy from Hold at Deutsche Bank
Deutsche Bank analyst Paul Trussell upgraded J.C. Penney to Buy and raised his price target for shares to $12 from $10. The retailer closed Friday up 47c to $8.94. Penny's target of mid-single-digit same-store-sales growth looks achievable while the company's brands and assortment look right, Trussell tells investors in a research note. Further, new CEO Marvin Ellison is bringing Penny "up the curve" in pricing and markdown optimization while reducing corporate redundancies, the analyst writes. He views the company as a "self-help story with multiple levers to pull."
August 28, 2015
07:12 EDTJWNWilliam Blair names 21 stocks best positioned for volatile markets
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06:03 EDTJCPJ.C. Penney implied volatility of 48 at lower end of index mean range
August 25, 2015
09:59 EDTMOn The Fly: Analyst Upgrade Summary
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07:46 EDTMMacy's upgraded on valuation at Deutsche Bank
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06:21 EDTMMacy's upgraded to Hold from Sell at Deutsche Bank
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August 24, 2015
10:24 EDTMMacy's initiated with a Buy at Standpoint Research
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09:49 EDTM, KSSFitbit being sold at Macy's seen as near-term catalyst
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07:27 EDTMFitbit entry at Macy's a significant near-term catalyst, says Piper Jaffray
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August 20, 2015
19:53 EDTJCPRetailers, others question heightened fees at Port of Oakland, WSJ says
After the Port of Oakland said it is considering implementing additional fees, the Retail Industry Leaders Association told the Federal Maritime Commission that it is "troubled" due to the lack of details regarding the fees, according to the Wall Street Journal. The retailer group also questioned the general effectiveness of such a program, and the Agriculture Transportation Coalition echoed the criticism, said the report. Note that executives from Lowe's (LOW), Best Buy (BBY), Target (TGT), Coca-Cola (KO), J.C. Penney (JCP), Tyson Foods (TSN), SunOpta (STKL), and Whole Foods (WFM) serve on the boards of the aforementioned associations. Reference Link
10:28 EDTJWN, JCPOptions with decreasing implied volatility
Options with decreasing implied volatility: KING JCP URBN DKS JWN HIG ADI DAR LOW TJX
August 19, 2015
13:23 EDTJCPOptions with increasing call volume
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10:14 EDTKSS, JCPOptions with decreasing implied volatility
Options with decreasing implied volatility: KING SUNE YY JCP URBN NTES DKS DANG SINA KSS
07:40 EDTKSSKohl's management to meet with MKM Partners
Meeting to be held in Menomonee Falls, WI on August 25 hosted by MKM Partners.
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