J.C. Penney Company, Inc. (JCP): Falling Knife or Screaming Value?

Unfortunately, Ullman promptly returned to a heavy emphasis on the above-mentioned “promotional activity” in an effort to lure back many of the value-conscious customers Johnson had driven away, even going so far as to apologize for its botched changes in a brutally honest television advertisement.

Meanwhile, as fellow Fool Andrew Marder just pointed out, competitors Nordstrom, Inc. (NYSE:JWN) and Macy’s, Inc. (NYSE:M) have remained solidly profitable, and both just posted comparable-store sales increases of 0.8% and 3.8%, respectively. Macy’s, Inc. (NYSE:M), for its part, even saw earnings per share rise 28% year over year during its most recent quarter. In addition, both Macy’s, Inc. (NYSE:M) and Nordstrom, Inc. (NYSE:JWN) sport reasonable price-to-earnings ratios below 17, and they offer solid 2% dividends to keep long-term investors happy.

What’s a Fool to do?
Ullman stated in his company’s earnings press release, “Our objective is to put J.C. Penney Company, Inc. (NYSE:JCP) back on a path to profitable growth.” Putting aside the fact that I’d be terribly worried if that weren’t his objective, Ullman is going to need to show reasonable proof of a sustainable turnaround before I’m willing to come anywhere near J.C. Penney stock.

In the meantime, with shares of J.C Penney up more than 21% over the past month, I’m convinced you’d be much better off putting your investing dollars to work with the competition.

The article J.C. Penney Stock: Falling Knife or Screaming Value? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington and The Motley Fool have no position in any of the stocks mentioned.

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