J.C. Penney Company, Inc. (NYSE:JCP) has a new CEO, billions in new cash, and counts one of the world’s most famous investors among its backers. However, deep fundamental problems surrounding the company still exist. While investors should celebrate the recent stock price rally, it remains to be seen whether these new funds can translate into renewed profitability.
J.C. Penney no longer pays a dividend, whereas TJX is firing on all cylinders. The TJX Companies, Inc. (NYSE:TJX) recently reported gangbusters growth in sales and profits, increased its common stock dividend, and is using some of its solid cash generation to buy back shares. Investors don’t need to gamble on whether J.C. Penney Company, Inc. (NYSE:JCP) can turn itself around: there are other profitable clothing retailers, like The TJX Companies, Inc. (NYSE:TJX), that should be on your watch list instead.
The article Is J.C. Penney's Rally For Real? originally appeared on Fool.com and is written by Robert Ciura.
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