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Analytical Approach on: J C Penney Company Inc (NYSE:JCP)

J C Penney Company Inc (NYSE:JCP) after opening the company’s stock at the price of $4.70, its shares traded on -3.85% below secure line. The stock exchanged hands 18,359,130 shares versus average trading capacity of 20.90M shares. It has a market cap of $1.33B.

Wall Street analysts are predicting that J C Penney Company Inc (NYSE:JCP) will report earnings per share of -$0.06 in their quarterly report. The firm is expected to announce results on 8/11/17.

For the current quarter J C Penney Company Inc (NYSE:JCP) has high EPS estimates of $0.08 in contradiction of low EPS estimates of -$0.14. However a year ago for the same quarter the company has reported -$0.05 EPS. Average estimation for the current quarter has been provided by 23 analysts.

Investors as well as the sell-side will be paying close attention to how the actual numbers compare with the estimates. Earnings surprises can have a huge impact on a company’s stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock’s price, but also to a gradual increase over time. Hence, it’s not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.

A large surprise factor in either direction typically can lead to a significant swing in the stock price in the hours and days after the report. Previously J C Penney Company Inc (NYSE:JCP) reported $0.06 earnings per share (EPS) for the quarter on 5/12/2017 Before Market Open, beating the consensus estimate of -$0.22 by $0.28 with surprise factor of 127.27%.

J C Penney Company Inc (NYSE:JCP) has average revenue estimates of $2.83B, compared to low analyst estimates of $2.73B and high estimates of $2.97B for the current quarter. A total number of 21 analysts provided estimations over revenues. For the next quarter the company has anticipated average revenues of $2.74B, according to the sentiments of 21 analysts.

Taking a broader look at the analyst consensus, most recently J C Penney Company Inc (NYSE:JCP)’s price target was revised on 05/18/17 and according to 20 analysts stock’s price will reach at $6.66 during 52 weeks with standard deviation of 1.85. J C Penney Company Inc (NYSE:JCP)’s  minimum price target estimates has been figured out at $4.00 while the maximum price target forecast is established at $15.00, if we look at the price target with an optimistic approach it has upside potential of 234% from its latest closing price of $4.49.

On the other hand J C Penney Company Inc (NYSE:JCP) has Relative Strength Index (RSI 14) of 33.21 along with Average True Range (ATR 14) of 0.28, where the relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine excess buying & selling conditions of an asset, it is one of the most popular technical indicators, computed on the basis of the speed and direction of a stock’s price movement. The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days) as suggested by J Welles Wilder. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD (Moving Average Convergence/Divergence). The average true range (ATR) is a measure of volatility introduced by Welles Wilder. Consequently J C Penney Company Inc (NYSE:JCP)’s weekly and monthly volatility is 8.19%, 4.67% respectively.

In terms of Buy, Sell or Hold recommendations, J C Penney Company Inc (NYSE:JCP) has an average broker recommendation of 2.60. This is according to a simplified 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. There are currently 15 recommendations in total that have been tracked in order to arrive at this number, of those, 3 have given the shares a Strong Buy while 0 are recommending a Buy, 12 have given the stock a Hold rating, 0 a Sell and 0 a Strong Sell.

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