Best Buy Co., Inc. (BBY), J.C. Penney Company, Inc. (JCP), Pitney Bowes Inc. (PBI): Are These Corporate Turnarounds For Real?

Should investors buy the hype?

In Best Buy’s case, the market may be getting ahead of itself. It’s not a stretch to say the company is in a better position than when it traded for $12 per share, but at the same time caution is warranted by the fact that the stock has nearly tripled since the beginning of the year. Investors hoping for a whole lot more from a company still reporting falling sales might be getting greedy. At its current price, Best Buy’s turnaround hopes have been realized. Investors buying at these levels are asking for trouble.

For J.C. Penney, the verdict does not seem to be in. The company and its investors are anxiously hoping that the back to school shopping season will be a productive one for the struggling retailer. If it is, shares could bounce. Add in the fact that a very famous hedge fund manager is among the company’s financial backers, and you could see the turnaround further materialize. But first, investors should wait for more certain sales data in coming months to confirm J.C. Penney’s revival.

Pitney Bowes, meanwhile, still offers investors a 4.2% yield, even after cutting its distribution a few months ago. That is almost double the yield on the S&P 500, and is probably attractive to investors starved for income. If you believe Pitney Bowes’s dividend has hit its floor, and that its business sees a light at the end of the tunnel, you’re at least being paid well to wait for the turnaround.

The article Are These Corporate Turnarounds For Real? originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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