NEW YORK (TheStreet) -- J.C. Penney (JCP) surged after CEO Myron Ullman said to expect improved sales numbers in the company's third quarter earnings. The retailer was gaining 8.8% to $7.39 in mid-day trading.
Speaking at the Women's Wear Daily Apparel Summit, Ullman reiterated the forecast for an increase in same-store sales in the quarter ending October. "We have 30 things wrong and they can all be fixed," he told investors, according to Reuters.
The company will report earnings on November 19. For third quarter 2012, same-store sales declined 26.1% and for the most recent quarter ended Aug. 3 the measure dropped 11.9%.
Shares have lost 64% in the year to date as management continues to struggle with the demands of turning around a company that has struggled against Target (TGT), Macy's (M) and other major retailers.
TheStreet Ratings team rates J.C. Penney as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate J.C. Penney a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: