What are some factors that influence the value of J.C. Penney stock?


Quick Answer

One of the most important factors that influences J.C. Penney stock is the success of the revamping strategy it launched in 2013 to resuscitate flagging sales. The company identified its own concerns in a 2014 report to the Securities and Exchange Commission.

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Full Answer

Concerns over J.C. Penney's revamping strategy include customers' response to marketing strategies, the company's ability to maintain profitability amid changing conditions, its ability to manage inventory, and the success of its omnichannel strategy. The company also points out that its business is seasonal, according to the Securities and Exchange Commission. In particular, the holiday season has a large impact on its overall earnings.

J.C. Penney is subject to the forces that affect stocks of all types. These include the performance of stocks in overseas markets, which Forbes points out could affect trading in the United States. Investors also must keep abreast of the latest economic news, checking Index Futures to determine the current trading climate. Forbes also advises investors to check whether analysts have upgraded or downgraded a particular stock. In the case of J.C. Penney, investors monitor whether an analyst has recently upgraded or downgraded another major retailer as this could also reflect on the current state of J.C. Penney's profitability.

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