NEW YORK (TheStreet) -- J.C. Penney (JCP) - Get Report stock is surging 11.60% to $9.33 this morning after reporting a 2015 fourth quarter earnings and revenue beat before the market open. 

The department store announced that comparable store sales rose 4.1% for the quarter, and the company expects EBITDA of $1 billion during 2016, TheStreet's Jim Cramer pointed out on CNBC's Squawk on the Street this morning.

J.C. Penney is winning market share, and is most likely taking it from Macy's (M) and Sears (SHLD), Cramer argued, noting that everyone is taking share from Sears after its disappointing fourth quarter.

"I took some share from Sears on the way in," he joked.

Apparel retail company Gap (GPS) is similarly down about 3% after reporting its fourth quarter earnings yesterday afternoon. 

"I don't see anything there to like," Cramer said of the quarter.

He noted that the company's Banana Republic brand had a 10% decline in comparable store sales, while its Old Navy brand's comparable store sales were flat. Analysts were looking for same-store sales to be flat and up 5%, respectively.

L Brands (LB) is one of the few bright spots within the retail industry, since the company does not focus on selling traditional mall apparel, Cramer mentioned. 

TheStreet Recommends

The retailer said on its conference call that its Victoria's Secret brand saw mid-teens growth in bras, high-single digit growth in panties and mid-20s growth in PINK lounge wear, he continued. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

J.C. Penney's weaknesses include its generally high debt management risk, disappointing return on equity and decline in the stock price during the past year.

You can view the full analysis from the report here: JCP

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Image placeholder title


data by