NEW YORK (TheStreet) -- Shares of J.C. Penney (JCP) - Get J. C. Penney Company, Inc. Report were advancing in early-afternoon trading on Wednesday ahead of the company's 2016 second quarter results, due out before Friday's opening bell.

Analysts are modeling a smaller loss than last year and higher revenue year-over-year.

Wall Street is expecting the Plano, TX-based department store to report a loss of 15 cents per share on revenue of $2.93 billion.

During the same quarter a year ago, J.C. Penney said it had an adjusted loss of 41 cents per share on revenue of $2.88 billion.

Deutsche Bank expects to see mixed near-term sentiment for department stores heading into second-quarter results. The firm is more optimistic for Macy's (M) and less so for J.C. Penney.

In the longer-term, Deutsche Bank expects to see bearish expectations given the challenged mall and apparel backdrop.

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"We still see opportunity for a favorable 2H set-up vs. easy compares if weather cooperates and our retailers can achieve clean inventories," the firm wrote in a recent note.

"Valuation remains relatively cheap, but we think investors are generally content to see how 2Q plays out from the sidelines, with no rush to get involved this far in advance of holiday," Deutsche Bank added.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and weak operating cash flow.

Recently, 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 articles's author.

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

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