Buy J.C. Penney On Pre-Earning Jitters, Say StockTwits’ Users

Investors shed shares of J.C. Penney, $JCP, ahead of its Thursday earnings report. But a majority of StockTwits’ users expect the stock to rise after it releases its numbers.

@andrethesmith it's just the $jcp pre-ER jitters

— Kyle (@ValueInvestor1) May. 14 at 03:48 PM

Shares of the retailer fell more than 5% Wednesday ahead of its earnings release, scheduled for Thursday, after-the-bell. Analysts expect a loss of $1.25-per-share on $2.71 billion in sales, according to stats on Yahoo Finance.

$JCP I sold my position the other day, I don't like to hold stocks through earnings. http://stks.co/b0YU4

— John (@Trade_Hunter) May. 14 at 03:41 PM

If Macy’s, $M, is any indication, J.C. Penney might not hit those numbers. Macy’s management said Wednesday that dismal weather kept sales down in the Northeast in the first half of the quarter, pressuring sales and contributing to a revenue expectation miss. However, they said business picked up as the sun burned off the snow.

Some investors doubted that J.C. Penney would be able to hold margins if snow kept shoppers away, potentially leading to a profit miss.

Macys sets stage for Q1 retail reporting – most will report weak sales with pick up from April. But few will show $M's margin control

— Rahul Sharma (@retail_guru) May. 14 at 08:26 AM

Others said that snow may have been a cover for Macy’s sales miss. The real reason sales were down is that some Macy shoppers walked into J.C. Penney, they argued.

$JCP M's report means nothing to JCP that we know yet.Weather may have equally hurt JCP or maybe M sales hurt by JCP increase.Time will tell

— Aaron Warwick (@aarondwarwick) May. 14 at 10:38 AM

Many investors on StockTwits.com viewed the fall in J.C. Penney’s stock as a buying opportunity. They argued that the company’s turnaround plan is finally taking hold as J.C. Penney has focused more on its in-house brands. And some said J.C. Penney’s chart showed more gains on the horizon.

$JCP – With this action, probably lower again tomorrow. To me, that is healthy and a good sign going into ER. JMO. I'll add again.

— Andre Smith (@andrethesmith) May. 14 at 03:47 PM


$JCP added here into earnings tomorrow

— Joe McCann (@joemccann) May. 14 at 03:57 PM

Agnostic on the story at $JCP, but love the chart setup to buy some call options here. Lots of technical support. http://stks.co/r0KKe

— Playing the Ponzi (@Playing_the_Ponzi) May. 14 at 03:52 PM

Sentiment on the stock is 86% bullish, according to StockTwits’ analytics.


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