J.C. Penney Is a Work in Progress
Massive changes are needed before retailer's stock can recover.
Beaten-down department-store chain J.C. Penney (JCP) is at the beginning stages of what should prove to be a massive effort to shore up its flagging operations. But, until a full and definite turnaround plan is in place, investors should hold off on buying the shares.
The company, which also operates the Eckerd’s Drug Store chain, recently announced the hiring of turnaround expert Allen Questrom as chief executive officer. Judging from Tuesday’s earnings release, Questrom will have his hands full when he joins the company in mid-September.
Mark Sellers does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.